Notes to SEFA
Title: Note 3
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Williams Baptist University (WBU) and is presented on the accrual basis of accounting. The information in this schedule 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 WBU, it is not intended to and does not present the financial position, changes in net assets, or cash flow of WBU.
De Minimis Rate Used: N
Rate Explanation: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognied following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. WBU does not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
WBU currently participates in the Federal Direct Student Loan Program (Direct Loan Program) which includes the Federal Unsubsidized Stafford Loan Program and the Federal Direct PLUS Loan Program. Proceeds under the Direct Loan Program are disbursed by the Federal government, rather than a lending institution, with WBU providing various administrative support. As WBU is only responsible for certain administrative duties, outstanding loans are not included in WBU's financial statements. It is not practical to determine the balance of loans outstanding to students under hte program as of June 30, 2023.