Audit 29405

Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of theHerkimer County Community College, an entity as defined in Note 1 to the Colleges financial statements, under programs ofthe federal government for the year ended August 31, 2022. Federal awards received directly from federal agencies as well asFederal awards passed through from other government agencies are included on the schedule. The information in this Scheduleis presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the Herkimer County Community College, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of the Herkimer County Community College.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are notallowable or are limited as to reimbursement. The amounts reported as federal expenditures were obtained from the financialrecords detail which is the source of the financial statements.Direct Loans are made by the Secretary of Education. The students ISIR, along with other information, is used by the institutionto originate a students loan. The student financial aid administrator is also required to provide and confirm certain information.De Minimis Indirect Cost RateThe Herkimer County Community College has elected to use the 10 percent de minimis indirect cost rate as allowed under theUniform Guidance.Donated Personal Protective Equipment (Unaudited)During the emergency period of COVID-19, federal agencies and recipients of federal assistance funds donated personalprotective equipment (PPE) to non-federal entities. In connection with that donation, the recipient must disclose the estimatedvalue of donated PPE, but such amounts are not included in the Schedule of Expenditures of Federal Awards. The College did notreceive donated PPE during the reporting year.Federal Perkins Loan Program (Assistance Listing Number 84.038)Herkimer County Community College is in the process of liquidating their Perkins Loan Portfolio. Federal Perkins Loans Federal Capital Contributions (ALN #84.038) is funded by the U.S. Department of Education. The Perkins Loan Program listedbelow is administered by Herkimer County Community College with certain processes being outsourced to Educational ComputerSystems, Inc dba Heartland ECSI. All the balances and transactions relating to this program are included in the Collegesfinancial statements. Loan activities and balances consist of the following:Balance as of Loans Payments and Balance asSeptember 1, 2021 Issued Adjustments of August 31, 2022$51,796 $0 $(1,055) $50,741The College did not recover an administrative cost allowance from the Perkins Loan Program for the year ended August 31, 2022.As required by the Uniform Guidance, the amount shown on the Schedule as expenditures for the Perkins Loan Program is equalto the sum of this administrative cost allowance, if any, balance outstanding at September 1, 2021, payments and adjustmentsreceived in the amount of $1,055 and the loans issued during the year ended August 31, 2022, which were $0. There were no newfederal capital contributions to the Perkins Loan Program during the year ended August 31, 2022. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.