Notes to SEFA
Title: CONTINGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures arenot allowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. Pass-through entity identifying numbers are presented where available.Expenditures for student financial aid programs include the federal share of student's FederalSupplemental Educational Opportunity Grant program grants and Federal Work Study programearnings, certain other federal financial aid for students and administrative cost allowances, whereapplicable.Expenditures for nonfinancial aid awards include indirect costs, related primarily to facilitiesoperation and maintenance and general, divisional and departmental administrative services, whichare allocated to direct cost objectives (including federal awards) based on negotiated formulascommonly referred to as facilities and administrative cost rates. Facilities and administrative costsallocated to such awards for the year ended June 30, 2022, were based on predetermined fixedrates negotiated with the College's cognizant federal agency.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The College receives funds under various federal grant programs and such awards are to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of noncompliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have any material financial impact.
Title: INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures arenot allowable or are limited as to reimbursement. Negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. Pass-through entity identifying numbers are presented where available.Expenditures for student financial aid programs include the federal share of student's FederalSupplemental Educational Opportunity Grant program grants and Federal Work Study programearnings, certain other federal financial aid for students and administrative cost allowances, whereapplicable.Expenditures for nonfinancial aid awards include indirect costs, related primarily to facilitiesoperation and maintenance and general, divisional and departmental administrative services, whichare allocated to direct cost objectives (including federal awards) based on negotiated formulascommonly referred to as facilities and administrative cost rates. Facilities and administrative costsallocated to such awards for the year ended June 30, 2022, were based on predetermined fixedrates negotiated with the College's cognizant federal agency.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The College has elected not to use the 10% de Minimis indirect cost rate allowed under the Uniform Guidance.