Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Claflin University (the “University”) and is presented on the accrual basis of accounting. 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 University,it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
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 University level.
The federal financial assistance from the U.S. Department of Agriculture, Community Facilities Loans and Grants program, is in the form of interest bearing loans to be repaid in accordance with the terms of the agreements. Because of the continuing compliance requirements, the total outstanding balances at the beginning of the fiscal year plus any expenditures on new loans are reported on the Schedule. See Notes to SEFA for Chart/Table.