Audit 352488

Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Herkimer County Community College, an entity as defined in Note 1 to the College’s financial statements, under programs of the federal government for the year ended August 31, 2024. Federal awards received directly from federal agencies as well as Federal awards passed through from other government agencies are included on the schedule. 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 the Herkimer County Community College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Herkimer County Community College. Basis of Accounting Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 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. The amounts reported as federal expenditures were obtained from the financial records detail which is the source of the financial statements. Direct Loans are made by the Secretary of Education. The student’s ISIR, along with other information, is used by the institution to originate a student’s loan. The student financial aid administrator is also required to provide and confirm certain information. De Minimis Indirect Cost Rate The Herkimer County Community College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Donated Personal Protective Equipment (Unaudited) During the emergency period of COVID-19, federal agencies and recipients of federal assistance funds donated personal protective equipment (PPE) to non-federal entities. In connection with that donation, the recipient must disclose the estimated value of donated PPE, but such amounts are not included in the Schedule of Expenditures of Federal Awards. The College did not receive donated PPE during the reporting year. Federal Perkins Loan Program (Assistance Listing Number 84.038) Herkimer County Community College is in the process of liquidating their Perkins Loan Portfolio. Federal Perkins Loans – Federal Capital Contributions (ALN #84.038) is funded by the U.S. Department of Education. The Perkins Loan Program listed below is administered by Herkimer County Community College with certain processes being outsourced to Educational Computer Systems, Inc dba Heartland ECSI. All the balances and transactions relating to this program are included in the College’s financial statements. Loan activities and balances consist of the following: Balance as of Loans Payments and Balance as September 1, 2023 Issued Adjustments of August 31, 2024 $10,801 $0 $(6,055) $4,746 The College did not recover an administrative cost allowance from the Perkins Loan Program for the year ended August 31, 2024. As required by the Uniform Guidance, the amount shown on the Schedule as expenditures for the Perkins Loan Program is equal to the sum of this administrative cost allowance, if any, balance outstanding at September 1, 2023, payments and adjustments received in the amount of $6,055 and the loans issued during the year ended August 31, 2024, which were $0. There were no new federal capital contributions to the Perkins Loan Program during the year ended August 31, 2024. De Minimis Rate Used: N Rate Explanation: De Minimis Indirect Cost Rate The Herkimer County Community College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.