Notes to SEFA
Accounting Policies: Note 1 - Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northwestern College under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, 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 Northwestern College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northwestern College. Note 2 - Summary of Significant Accounting Policies - 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. Northwestern College has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 3 - Federal Loan Program - The Federal loan program listed subsequently is administered directly by the college, and balances and transactions relating to this program are included in the colleges financial statements. The balance of loans outstanding at June 30, 2022 and 2021, consists of: Federal Assistance Listing Number 84.038, Program Name Federal Perkins Loan Program, Outstanding Balance at June 30, 2022 and 2021 are $890,937 and $1,088,324, respectively.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.