Audit 296939

Title: Basis of Accounting and Presentation Accounting Policies: Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Authority has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award/expenditure activity of the North Carolina State Education Assistance Authority (the Authority) under programs of the federal government for the year ended June 30, 2023 and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Authority, it is not intended to be and does not present the net position, changes in net position, or cash flows of the Authority.

Title: Federal Family Education Loan Program (FFELP) Accounting Policies: Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Authority has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance Pursuant to certain amendments to the Higher Education Act of 1965, as amended, included in the Health Care and Education Reconciliation Act of 2010, all new federal student loans have been orginated through the Federal Direct Loan Program since July 1, 2010. As a result, the Schedule reflects the balance of FFELP loans guaranteed by the Authority for the years ending June 30, 2010 and prior. Loans outrstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. At June 30, 2023, the balance of FFELP loans guaranteed by the Authority totaled $561,981,906. Beginning with eligible FFELP loans first disbursed on or after April 1, 2006, excess interest must be remitted to the U.S. Department of Education when the applicable interest rate on a loan for any given quarter exceeds the special allowance support level. During the year ended June 30, 2023, excess interest remitted to the U.S. Department of Education on loans funded by the Authority totaled $2,444,731.

Title: Indirect Cost Rate Accounting Policies: Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Authority has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance The Authority has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Continuing Compliance Requirements Accounting Policies: Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Authority has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance Guaranteed student loans impose no continuing compliance requirements other than to repay the loans.