Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: Expenditures reported on 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 types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Milligan University has elected not to use the 10 percent de minimis indirect
cost rate allowed under the Uniform Guidance.
The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Milligan
University under programs of the federal government for the year ended May 31, 2024. 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 Milligan
University, it is not intended to, and does not present, the financial position, changes in net assets or cash
flows of Milligan University.
Title: Note C - Federal Loan Programs
Accounting Policies: Expenditures reported on 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 types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Milligan University has elected not to use the 10 percent de minimis indirect
cost rate allowed under the Uniform Guidance.
The federal loan programs listed subsequently are administered directly by Milligan University, and balances
and transactions relating to these programs are included in Milligan University's basic 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. See the Notes to the SEFA for chart/table. As part of the wind down of the Perkins Loan Program, the Secretary requires all institutions to assign to the
Department all Perkins Loans that are in default for more than two years. Unless the institution has
documentation that these borrowers are making payments toward their Perkins loan debt, the institution is
required to assign all loans in default for more than two years effective June 30, 2023. If an institution
determines that borrowers who have defaulted Perkins Loans are making payments, the institution may
notify the Department that an acceptable collection record is available upon request. Milligan University
began the loan assignment process during the year ended May 31, 2022. As of May 31, 2023, the University
had submitted 98 loans from 93 borrowers with outstanding principal balances totaling $98,545. During
2023-24, the University assigned one more loan with an outstanding principal balance of $9,000. The total
outstanding principal assigned to the Department is $9,000 as of May 31, 2024.