Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The schedule is prepared on the same basis of accounting as East Central Community Colleges financial statements. The College uses the economic resources measurement focus and the accrual basis of accounting whereby all expenses are recorded when they have been reduced to a legal or contractual obligation to pay, which is in accordance with accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were $634,712.
Title: Federal Perkins Loan Liquidation
Accounting Policies: The schedule is prepared on the same basis of accounting as East Central Community Colleges financial statements. The College uses the economic resources measurement focus and the accrual basis of accounting whereby all expenses are recorded when they have been reduced to a legal or contractual obligation to pay, which is in accordance with accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Note 5 Federal Perkins Loan LiquidationDuring the fiscal year ended June 30, 2022, the College notified the United States Department of Education of the Colleges intent to liquidate and closeout student notes receivable under the Federal Perkins Loan Program. The college completed this process during the fiscal year and returned the Federal share of the Perkins Loan Revolving Fund in the amount of $8,234 and the Federal share of the Federal share of the Required Capital Distribution of the Perkins Loan Revolving Fund in the amount of $931.