Title: Note A – Basis of Presentation
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Spelman College under programs of the federal government for the year ended June 30, 2023. 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 Spelman
College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Spelman College.
For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the College and agencies and departments of the federal government and all subawards passed through to the College by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The Schedule also denotes awards passed through from the College to other non-federal subrecipient organizations.
Title: Note B – Significant Accounting Policies
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and
cost accounting principles of the Uniform Guidance. Under these cost principles, 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.
Title: Note C – Indirect Cost Rate
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Title: Note D – Federal Perkins Loan Program (Assistance Listing 84.038)
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
The Perkins Loan Program listed below is administered directly by Spelman College. The outstanding Perkins loans receivable balance as of June 30, 2023 is as follows:
Spelman College is continuing to service loans under the Perkins programs; however, no new loans were made effective October 1, 2017.
Title: Note E – Federal Direct Student Loans (Direct Loans)
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
During the fiscal year ended June 30, 2023, Spelman College processed the following amounts of loans under the Federal Direct Student Loans Program (which includes Federal Stafford
Loans, Federal Parents’ Loans for Undergraduate Students and Federal Unsubsidized Stafford Loans):
Title: Note F – Standards of Financial Responsibility
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
The U.S. Department of Education requires private nonprofit institutions participating in Title IV programs to demonstrate financial responsibility by meeting a ratio requirement. The component of the ratio, as defined by the U.S. Department of Education, include cash and cash equivalents of $127,841,957, current accounts and contributions receivable of $21,824,631 and current liabilities of $21,126,372.
Title: Note G – Reconciliation of Total Expenditures of Federal Awards and Other Financial
Assistance to the Basic Financial Statements
Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, 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: Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Following is a summary reconciliation of total expenditures of federal awards and other financial assistance as reported to the basic financial statements issued by Ernst & Young, LLP dated November 3, 2023: