Notes to SEFA
Title: Basis of 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 North Carolina State Education Assistance Authority (the Authority) under Federal Family Education Loan Program (FFELP) for the period ended October 31, 2023. The information in this 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, 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 outstanding at the beginning of the period are included in the federal expenditures presented in the Schedule. The Authority ceased Guranty Agency functions on October 31, 2023 and transferred these functions to Education Credit Management Corporation (ECMC). As a result, there were no FFELP loans guaranteed by the Authority after October 31, 2023. The balance of the FFELP loan guarantees transferred to ECMC was $519,669,251.
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.