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.
De Minimis Rate Used: N
Rate Explanation: The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of New England Conservatory of Music (the Conservatory) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Conservatory, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Conservatory.
Title: Note 2. Summary of Significant Accounting Policies
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.
De Minimis Rate Used: N
Rate Explanation: The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
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.
Title: Note 3. Indirect Cost Rate
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.
De Minimis Rate Used: N
Rate Explanation: The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
Title: Note 4. 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.
De Minimis Rate Used: N
Rate Explanation: The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
The Conservatory is responsible for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program. These distributions and the related funding sources are not included in the Conservatory’s financial statements.
The Federal Perkins Loan Program is administered directly by the Conservatory, and balances and transactions related to this program are included in the Conservatory’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. Loans outstanding at June 30, 2023, under the revolving Federal Perkins Loan Program under Federal Assistance Listing number 84.038 totaled $533,836. There were no new loans awarded during the year ended June 30, 2024.
Title: Note 5. Disaster Grants – Public Assistance Funds
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.
De Minimis Rate Used: N
Rate Explanation: The Conservatory has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
The Schedule includes award activity related to the U.S. Department of Homeland Security Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number 97.036. As required based on guidance in the 2024 OMB Compliance Supplement, the Conservatory must report expenditures on the Schedule when the Federal Emergency Management Agency approves the grant. The Schedule thus includes $772,878 of total direct expenditures incurred in a period prior to July 1, 2023, reimbursed by a grant which was approved during the year ended June 30, 2024.