Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the Schedule) includes grants, contracts and similar agreements entered into directly between Hood College of Frederick, Maryland and Affiliates (the College) and agencies and departments of the federal government. It also includes all federal subawards to the College by nonfederal organizations pursuant to federal, state and local grants, contracts, and similar agreements. The information in this schedule is presented in accordance with the provisions of Title 2 U.S Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for the Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the College. Also, the grants reflect transactions for the June 30, 2022 fiscal year irrespective of the year of grant award, and accordingly, the Schedule does not include a full years activity for grants awarded or terminated on dates not coinciding with the aforementioned fiscal year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Expenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant program and Federal Work-Study program earnings, Federal Pell grants, certain other federal financial aid grants for students, loan disbursements, and administrative cost allowances, where applicable. Expenditures for other federal awards of the Colleges academic and other divisions are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursements. The College did not elect to use the 10% de minimus cost rate.
Title: NOTE 3 - FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the Schedule) includes grants, contracts and similar agreements entered into directly between Hood College of Frederick, Maryland and Affiliates (the College) and agencies and departments of the federal government. It also includes all federal subawards to the College by nonfederal organizations pursuant to federal, state and local grants, contracts, and similar agreements. The information in this schedule is presented in accordance with the provisions of Title 2 U.S Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for the Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Because the schedule presents only a selected portion of the operations of the College, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the College. Also, the grants reflect transactions for the June 30, 2022 fiscal year irrespective of the year of grant award, and accordingly, the Schedule does not include a full years activity for grants awarded or terminated on dates not coinciding with the aforementioned fiscal year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Loans made to college students under the various federal loan programs are summarized below for the year ended June 30, 2022: See the Notes to the SEFA for chart/table. The College administers the Federal Perkins Loan Program (Perkins). Therefore, the Colleges consolidated financial statements include the Perkins balances and transactions. The balance of Perkins loans outstanding as of June 30, 2022, was $1,359,284. For the Federal Direct Student Loans, the College is responsible only for the performance of certain administrative duties; therefore, the loan balances and transactions for those programs are not included in the Colleges basic consolidated financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the College under these programs as of June 30, 2022.