Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal and state awards includes the federal and stateexpenditures of Salem Academy and College (Salem) and is presented using the accrual basis ofaccounting. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements. Expenditures for federal student financial aid and HEERF programs are recognized as incurred andinclude the federal share of students FSEOG program grants and FWS program earnings, certainother federal financial aid for students, and administrative cost allowances, where applicable. FederalPell Grant awards and Direct Loans are recognized as agency transactions and are not recorded asexpenditures in the basic financial statements
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.