Notes to SEFA
Title: Relationship to Consolidated Financial Statements
Accounting Policies: The accompanying schedule of federal awards presents the expenditures of federal awardsprograms of Harrisburg University of Science and Technology (the University). The Universityis described in Note 1 to the Universitys consolidated financial statements.
De Minimis Rate Used: Y
Rate Explanation: The accompanying schedule of federal awards is presented using the accrual basis ofaccounting, which is described in Note 1 to the Universitys consolidated financial statements.The University has elected to use the 10% de minimus indirect cost rate for its federalprograms.
Amounts reported in the accompanying schedule agree with amounts included in theUniversitys consolidated financial statements in all material respects.
Title: Federal Direct Student Loans
Accounting Policies: The accompanying schedule of federal awards presents the expenditures of federal awardsprograms of Harrisburg University of Science and Technology (the University). The Universityis described in Note 1 to the Universitys consolidated financial statements.
De Minimis Rate Used: Y
Rate Explanation: The accompanying schedule of federal awards is presented using the accrual basis ofaccounting, which is described in Note 1 to the Universitys consolidated financial statements.The University has elected to use the 10% de minimus indirect cost rate for its federalprograms.
The University is only responsible for the performance of certain administrative duties and is not considered the lender with respect to the student loan programs, 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. The amount reported on the Schedule of Expenditures of Federal Awards represents new loan advances during the year.
Title: Financial Responsibility
Accounting Policies: The accompanying schedule of federal awards presents the expenditures of federal awardsprograms of Harrisburg University of Science and Technology (the University). The Universityis described in Note 1 to the Universitys consolidated financial statements.
De Minimis Rate Used: Y
Rate Explanation: The accompanying schedule of federal awards is presented using the accrual basis ofaccounting, which is described in Note 1 to the Universitys consolidated financial statements.The University has elected to use the 10% de minimus indirect cost rate for its federalprograms.
The Universitys Equity, Primary Reserve, and Net Income ratios for the year ended June 30, 2022 yield a composite score of 1.7 out of a possible 3.0 as described in 34 C.F.R. ?668.172, Financial Ratios. Accordingly, the University achieved the minimum score of 1.5 and meets the requirement of the financial standards for this period. Data required for the calculation of the ratios in the Financial Responsibility Supplemental Schedules.