Notes to SEFA
Title: Note A: Federal 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: The University has elected not to use the 10
percent de minimis indirect cost rate allowed under the Uniform Guidance.
During the year ended May 31, 2023, the University processed the following amount of new loans under the
Federal Perkins Loan Program and the William D. Ford Federal Direct Loan Program (which includes Graduate
Plus Loans and Parent Plus Loans for Undergraduate Students): $10,191,804. See Notes to the SEFA for chart/table.
Title: Note B: 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: The University has elected not to use the 10
percent de minimis indirect cost rate allowed under the Uniform Guidance.
The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of King
University under programs of the federal government for the year ended May 31, 2023. The information in this
Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,
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 King University, it is not
intended to, and does not present, the financial position, changes in net assets or cash flows of King University.
Title: Note D: Federal Perkins Loan Program
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: The University has elected not to use the 10
percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University administers the Perkins Loan Program. For purposes of the schedule, the amount reported
includes the outstanding loan balance at the beginning of the fiscal year. Due to regulation changes, no further
loans can be made from the program and no administrative cost allowance can be taken from the loan fund. See the Notes to the SEFA for chart/table. Schools have the option of continuing to collect on outstanding loan balances or can voluntarily liquidate the
program. The University has no current plans to begin the Perkins liquidation process, however, is required to
periodically return excess cash on hand from the program to the Department of Education.