Notes to SEFA
Title: Note 1 - Basis of Presentation
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.
De Minimis Rate Used: N
Rate Explanation: University of the Cumberlands has elected not to use the 10 percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity
of University of the Cumberlands, Inc. (the University) for the year ended June 30, 2023. The
information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the consolidated
financial statements.
Title: Note 2 - Federal Student Loan Programs
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.
De Minimis Rate Used: N
Rate Explanation: University of the Cumberlands has elected not to use the 10 percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The Federal Perkins Loan Program is administered directly by the University and balances and
transactions relating to this program are included in the University's consolidated financial
statements. For purposes of this schedule, the amount reported includes the outstanding loan balance
at the beginning of the year of $1,331,620. The loans outstanding from the Federal Perkins Loan
Program on June 30, 2023 were $539,756.
The University is responsible only for the performance of certain administrative duties with respect
to the Federal Direct Loan Program and, accordingly, these loans are not included in the
consolidated financial statements of the University. It is not practical to determine the balance of
loans outstanding to students and former students of the University under this program as of June
30, 2023. The current expenditures under the Federal Direct Loan Program of $83,259,557 are
included in the accompanying Schedule of Expenditures of Federal Awards.