Notes to SEFA
Title: Note 3 - Student Financial Assistance Expenditures
Accounting Policies: Note 1 - Basis of AccountingThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SeattlePacific University and affiliate (collectively, the University) under programs of the federal government for the year endedJune 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theUniversity, it is not intended to and does not present the financial position, changes in net assets or cash flows of theUniversity.Note 2 - Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing, as applicable, either the cost principles contained in OMB Circular A-21, Cost Principles for EducationalInstitutions, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available.Federal grants awarded to the University on a cost-reimbursement basis are conditional grants for which revenue isrecognized in the period the conditions are satisfied. During the year ended June 30, 2021, the University was awarded aconditional grant under the COVID-19: Higher Education Emergency Relief Fund awarded under the American Rescue Plan -Institutional Portion. The University incurred qualifying costs during the year ended June 30, 2021; however, the conditionsof the award had not been satisfied at June 30, 2021. Therefore, the qualifying costs were reported on the Schedule for theyear ended June 30, 2021; however, revenue was not recognized until the conditions of the grant were met, during the yearending June 30, 2022 (Note 6).
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The University recognizes expenditures for grants and federal student financial assistance programs as they are incurred.Administrative expenses, claimed and included in the Schedule, for Federal Work Study (FWS) were $68,269 for the yearended June 30, 2022.