Notes to SEFA
Title: Loan Programs
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Southwest Baptist University under programs of the federal government for the year ended May 31, 2022. The information in the 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 Southwest Baptist University, it is not intended to and does not present the financial position, changes in net assets or cash flows of Southwest Baptist University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal Direct Student Loan balances are not included in Southwest Baptist University's financial statements. Loans disbursed during the year are included in federal expenditures presented in the Schedule. The federal loan programs listed subsequently are administered directly by Southwest Baptist University, and balances and transactions relating to these programs are included in Southwest Baptist University's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of Federal Perkins Loans (CFDA 84.038) outstanding at May 31, 2022 was $1,579,868. The balance of Nursing Student Loans (CFDA 93.364) outstanding at May 31, 2022 was $769,925. The balance of Nursing Faculty Loans (CFDA 93.264) outstanding at May 31, 2022 was $516,047.