Notes to SEFA
Title: 1. Basis of Presentation
Accounting Policies: Expenditures reported in 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 expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal award activity of Rhode Island School of Design (the School) 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 the School, it is not intended to and does not present the financial position, changes in net assets or cash flows of the School.
Title: 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in 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 expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
Expenditures reported in 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
expenditures are not allowable or limited as to reimbursement.
The School recorded $309,996 in federal expenditures from the Federal Emergency Management Agency (FEMA) related to the Disaster grants - public assistance (presidentially declared disasters) program. These expenditures were related to eligible expenditures incurred in fiscal year 2021 through fiscal year 2023 which FEMA approved in fiscal year 2023.
Title: 3. Federal Student Loan Programs
Accounting Policies: Expenditures reported in 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 expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
The federal student loan program listed below is administered directly by the School, and balances and transactions relating to this program is included in the student loans receivable balance of the School's consolidated 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 School elected to cease participation in the Perkins Loan Program on June 23, 2023 and liquidated all remaining loans. Therefore, the balance of loans outstanding at June 30, 2023 consists of:
Outstanding Balance at June 30, 2023
Federal Perkins Loan Program $ -
Title: 4. Indirect Cost Rate
Accounting Policies: Expenditures reported in 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 expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
Title: 5. Perkins Loan Liquidation
Accounting Policies: Expenditures reported in 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 expenditures are not allowable or limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
The School elected to cease participation in the Perkins Loan Program on June 23, 2023. The 2023 Single Audit included testing of the Federal Perkins Loan Liquidation compliance requirements and the School properly performed end-of-participation procedures in accordance with the OMB Compliance Supplement.