Title: Basis of Presentation
Accounting Policies: Expenditures for student financial aid programs are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, certain other federal financial aid for students, North Carolina Need-Based Scholarship, and administrative cost allowances, where applicable
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of the Johnson C. Smith University (the University) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Federal Perkins Loan Program (Federal Assistance Listing Number 84.038)
Accounting Policies: Expenditures for student financial aid programs are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, certain other federal financial aid for students, North Carolina Need-Based Scholarship, and administrative cost allowances, where applicable
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to the program are included in the loan fund of the Universitys financial statements. The balance of loans outstanding under the Federal Perkins Loan Program was $168,357 as of June 30, 2022. There were no new loans for the year ended June 30, 2022. There was no federal or institutional capital contribution for the year ended June 30, 2022.
Title: Subrecipients
Accounting Policies: Expenditures for student financial aid programs are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, certain other federal financial aid for students, North Carolina Need-Based Scholarship, and administrative cost allowances, where applicable
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Of the federal expenditures presented on the Schedule, the University provided no federal awards to subrecipients.
Title: Contingencies
Accounting Policies: Expenditures for student financial aid programs are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, certain other federal financial aid for students, North Carolina Need-Based Scholarship, and administrative cost allowances, where applicable
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The grant programs are subject to financial and compliance audits by the grantors or their representative. Such audits could lead to requests for reimbursement to the grantor agencies for expenditures disallowed under terms of the grants. Management believes disallowances, if any, will not be material.
Title: Categorization of Expenditures and Other Matters
Accounting Policies: Expenditures for student financial aid programs are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, certain other federal financial aid for students, North Carolina Need-Based Scholarship, and administrative cost allowances, where applicable
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The categorization of expenditures by program included in the schedule of expenditures of federal and state awards is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing, which is issued in June and December of each year. The schedule of expenditures of federal and state awards for the year ended June 30, 2022 reflects Assistance Listing changes issued through April 2022.