Notes to SEFA
Title: FEDERAL DIRECT STUDENT LOANS PROGRAM
Accounting Policies: The schedule of expenditures of federal awards is presented using the accrual basis in
accordance with accounting principles prescribed by the Pennsylvania Department of
Education, which conform to generally accepted governmental accounting principles.
Expenditures are recognized in the accounting period in which the liability is incurred, if
measurable. Revenues designated for payment of specific School expenditures are recognized
when the related expenditures are incurred. Any excess of revenues or expenditures at the
fiscal year end is recorded as unearned revenue or a receivable, respectively.
De Minimis Rate Used: N
Rate Explanation: The School has not elected to use the 10% de minimis indirect cost rate for its federal programs.
For the Federal Direct Student Loan Programs, the School is only responsible for the
performance of certain administrative duties and is not considered to be the lender of the
funds; therefore, the fund balance and transactions of this loan program are not included in the
School's basic financial statements.
Title: PELL GRANT
Accounting Policies: The schedule of expenditures of federal awards is presented using the accrual basis in
accordance with accounting principles prescribed by the Pennsylvania Department of
Education, which conform to generally accepted governmental accounting principles.
Expenditures are recognized in the accounting period in which the liability is incurred, if
measurable. Revenues designated for payment of specific School expenditures are recognized
when the related expenditures are incurred. Any excess of revenues or expenditures at the
fiscal year end is recorded as unearned revenue or a receivable, respectively.
De Minimis Rate Used: N
Rate Explanation: The School has not elected to use the 10% de minimis indirect cost rate for its federal programs.
These funds are received by the School on behalf of students enrolled in the practical nursing
program. These grants are awarded to the students and are applied to the amount receivable
from the student for tuition income. Therefore, these grants are recorded as tuition income
within the practical nursing fund rather than federal revenue.