Title: 2. Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of federal awards (Schedule) includes the federal grant activity of Southwestern Assemblies of God University (University), under programs of the federal government for the year ended May 31, 2022. The information in the 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
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. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3. Federal Perkins Loans Program
Accounting Policies: The accompanying schedule of federal awards (Schedule) includes the federal grant activity of Southwestern Assemblies of God University (University), under programs of the federal government for the year ended May 31, 2022. The information in the 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
During the year ended May 31, 2022, the University did not advance new loans under the Federal Perkins Loans Program. The outstanding loan balance at May 31, 2022 was $446,733. The University is in the process of liquidating the program with expected close out during the year ended May 31, 2023.
Title: 4. Federal Direct Student Loans Program
Accounting Policies: The accompanying schedule of federal awards (Schedule) includes the federal grant activity of Southwestern Assemblies of God University (University), under programs of the federal government for the year ended May 31, 2022. The information in the 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Federal direct student loan balances are not included in the Universitys consolidated financial statements. Loans disbursed during the year are included in federal expenditures presented in the Schedule.
Title: 5. Administrative Costs
Accounting Policies: The accompanying schedule of federal awards (Schedule) includes the federal grant activity of Southwestern Assemblies of God University (University), under programs of the federal government for the year ended May 31, 2022. The information in the 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amount of Pell Grant and FederalWork Study disbursements shown on the schedule of expenditures of federal awards includes the current year administrative cost allowance of $8,724 and $4,860, respectively.