Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are reported on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
FEDERAL PERKINS LOANS (84.038) - Balances outstanding at the end of the audit period were 209,969. The federal student loan program listed subsequently is administered directly by the University and balances and transactions relating to this program are included in the University's basic financial statements. Loans made during the year are included in the federal expenditures presented in the schedule. During September 2015, the Federal government allowed the Federal Perkins Loan Program (Perkins Loans) to expire. The Department of Education has published guidance on the wind-down of the Perkins Loans. The University will continue servicing the Perkins Loans, return the Department of Educations share of the funds, and assign delinquent Perkins Loans to the Department of Education until such time as all of the outstanding Perkins Loans have been paid in full or otherwise fully retired, or assigned to and accepted by the Department of Education.
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are reported on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards (the schedule) includes the federal and state award activity of the McMurry University (the University) under programs of the federal and state government for the year ended May 31, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: State Awards
Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are reported on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate. The University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The State Awards, included in the schedule of expenditures of federal and state awards, are presented for informational purposes only and are not subject to requirements of the State of Texas Single Audit Circular.