Notes to SEFA
Title: NOTE B – FEDERAL DIRECT STUDENT LOANS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) reports Northwest State Community
College’s (the College) federal award programs’ disbursements. 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). The schedule has
been prepared on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either
the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the
cost principles contained in Title U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The College has not elected to use the 10-percent de minimis indirect
cost rate as allowed under the Uniform Guidance.
The College participates in the Federal Direct Student Loan Program. The dollar amounts listed in the schedule of
federal awards expenditures represents new loans advanced during the current fiscal year.
The College is a direct lender of these loan funds; however the College is not responsible for collecting these loans
in future periods.