Notes to SEFA
Title: NOTE 1―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. There were no federal awards passed through to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The Citadel has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Citadel, The Military College of South Carolina (“The Citadel”) under programs of the federal government for the year ended June 30, 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of The Citadel, it is not intended to and does not present the financial position, changes in net position, or cash flows of The Citadel.
Title: NOTE 4—LOANS OUTSTANDING
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. There were no federal awards passed through to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The Citadel has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
During the year ended June 30, 2021, The Citadel liquidated its Federal Perkins Loan portfolio and in doing so retired, purchased, or assigned The Citadel’s outstanding loans to the U.S. Department of Education (the “Department”), completed its National Student Loan Data System (“NSLDS”) reporting requirements, returned the Federal Capital Contribution to the Department, and filed its final Fiscal Operations Report and Application to Participant (“FISAP”).
The Federal Direct Student Loan program provides loan capital directly from the federal government (rather than through private lenders) to vocational, undergraduate, and graduate students and their parents. The loans are made directly from the federal government; therefore, there is no loan balance recorded at the college level.