Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the federal awards received by the Illinois Institute of Technology (the University) under programs of the federal government for the fiscal year ended May 31, 2023. The Schedule excludes expenditures of federal awards of IIT Research Institute, a subsidiary of the University. Expenditures of federal awards for IIT Research Institute are audited in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) separately.
De Minimis Rate Used: N
Rate Explanation: The University does not use the de minimus indirect cost rate permitted under the Uniform Guidance.
Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the federal awards received by the Illinois Institute of Technology (the University) under programs of the federal government for the fiscal year ended May 31, 2023. The Schedule excludes expenditures of federal awards of IIT Research Institute, a subsidiary of the University. Expenditures of federal awards for IIT Research Institute are audited in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) separately.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The University's federal programs include:
Student Financial Assistance Cluster - Includes certain awards to provide financial assistance to students primarily under the Federal Pell Grant (Pell), Federal Work Study (FWS), and the Federal Supplemental Educational Opportunity Grant (FSEOG) programs of the U.S. Department of Education. Also, the University receives awards to make loans to eligible students under the Federal Direct Student Loan Program (FDL).
Research and Development Cluster - Includes awards for research and development activities at the University sponsored by various agencies of the federal government and pass through entities.
Other Federal Awards - Includes awards for program activities at the University sponsored by various agencies of the federal government and pass through entities.
Total expenditures in the Schedule of approximately $74,375,000 do not directly agree to the revenue line items on the University's May 31, 2023 consolidated statement of activities. Federal expenditures and indirect cost revenue are classified in the accompanying consolidated statement of activities as government grants and contracts revenue, totaling approximately $36,665,000 in federal expenditure and indirect cost revenue of approximately $5,414,000, relate to the University. Government grants and contracts consist of approximately $1,942,000 of awards received from states and local sources and $1,646,000 in conditional Higher Education Emergency Relief Funds monies recognized as revenue during the year ended May 31, 2023 but presented on the Schedule for the year ended May 31, 2022. The remaining balance of approximately $6,734,000 related to IIT Research Institute, a consolidated separate legal entity. Federal student loans activity in the Schedule of approximately $37,700,000 is not included in the consolidated statement of activities.
Expenditure Recognition: Expenditures are recognized in the period they are incurred. Award reporting periods do not necessarily coincide with the fiscal reporting period of the University. The existence of certain credit balances on the Schedule is primarily due to the reclassification of expenditures incurred recorded in the University's prior fiscal reporting period.
Title: NOTE 2 - INDIRECT COSTS
Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the federal awards received by the Illinois Institute of Technology (the University) under programs of the federal government for the fiscal year ended May 31, 2023. The Schedule excludes expenditures of federal awards of IIT Research Institute, a subsidiary of the University. Expenditures of federal awards for IIT Research Institute are audited in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) separately.
De Minimis Rate Used: N
Rate Explanation: The University does not use the de minimus indirect cost rate permitted under the Uniform Guidance.
The University has four-year predetermined fixed indirect cost rates, effective June 1, 2019 through May 31, 2023, which have been negotiated with its cognizant agency, U.S. Department of Health and Human Services. The predetermined fixed rates were based on the University's financial information for fiscal year 2018. The base rates for on and off campus and US Food and Drug Administration research were 55%, 24%, and 12% of modified total direct costs, respectively. Approximately $5,414,000 of indirect costs were reimbursed to the University during the year ended May 31, 2023. The University does not use the de minimus indirect cost rate permitted under the Uniform Guidance.
Title: NOTE 3 - FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the federal awards received by the Illinois Institute of Technology (the University) under programs of the federal government for the fiscal year ended May 31, 2023. The Schedule excludes expenditures of federal awards of IIT Research Institute, a subsidiary of the University. Expenditures of federal awards for IIT Research Institute are audited in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) separately.
De Minimis Rate Used: N
Rate Explanation: The University does not use the de minimus indirect cost rate permitted under the Uniform Guidance.
Loans made by the University to eligible students under federal student loan programs and federally guaranteed loans issued to students of the University during the fiscal year ended May 31, 2023 are summarized as follows: Perkins $- FDL $34,653,616 Total federal student loan program $34,653,616
The Perkins program is administered directly by the University and balances and transactions relating to this program are included in the University's consolidated financial statements. The balance of loans outstanding consist of the following amounts: Outstanding balance as of May 31, 2022 $3,045,965 Loans disbursed $- Origination fee receivable $13,133 Repayment $(688,016) Cancellations $(362,681) Outstanding balance as of May 31, 2023 $2,008,401
The University is responsible only for the performance of certain administrative duties with respect to the FDL, and accordingly, these loans are not included in its consolidated financial statements, and it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs at May 31, 2023.