Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the California College of the Arts (the College) under programs of the federal government. 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. Because the schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
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 expenditure are not allowable or are limited as to reimbursement.
Although the U.S. Department of Education provides an Administrative Cost Allowance as a component of the Student Financial Assistance programs, there is no indirect cost rate allowed as part of these programs or any programs listed on the accompanying schedule of expenditures of federal awards. As such, the College has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The College completed the liquidation process for the Perkins Loan Program in the fiscal year ended June 30, 2025. The required audit procedures related to liquidation were included in the scope of the independent auditors’ report over compliance required by the Uniform Guidance reflected in this reporting package. 30, 2025. The required audit procedures related to liquidation were included in the scope of the independent auditors’ report over compliance required by the Uniform Guidance reflected in this reporting package.