Notes to SEFA
Accounting Policies: (1) General - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule.(2) Basis of Accounting - The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the Universitys consolidated financial statements.(3) Relationship to Federal Financial Reports - Amounts reported in the accompanying Schedule may not agree with the amounts reported in the related federal financial reports filed with grantor agencies because of accruals which would be included in the next report filed with the agencies.(5) Perkins Loan Program - At May 31, 2022, the University reported Perkins loans receivable of approximately $1,450,463. The University made no loans in the program during the year.(6) Federal Direct Loan Program - The University began participation in the Federal Direct Loan Program June 14, 2010. This was mandated by the Student Aid and Fiscal Responsibility Act that terminated the Federal Family Education Loan Program (FFELP) as of July 1, 2010. This program provides loans directly from the U.S. Department of Education to students with Federal Stafford, Grad PLUS and Parent PLUS loans rather than from a bank or other lending institution. The University originates the loans and performs certain administrative duties. The institution has no repayment responsibilities, therefore the outstanding loans are not included in the Universitys consolidated financial statements.(7) Subrecipients - Of the federal expenditures presented in the Schedule, the University provided federal awards to subrecipients in the Research & Development (R&D) Cluster totaling $1,933,184.(8) Indirect Cost Rate - The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.