Notes to SEFA
Title: Note F Standards of Financial Responsibility
Accounting Policies: Note A Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Spelman 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 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 Spelman College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Spelman College.For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the College and agencies and departments of the federal government and all subawards passed through to the College by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The Schedule also denotes awards passed through from the College to other non-federal subrecipient organizations.Note B Significant Accounting Policies Expenditures for direct costs are recognized as incurred using the accrual basis of accounting and cost accounting principles of the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did Spelman College has not elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. not use the de minimis cost rate.
The U.S. Department of Education requires private nonprofit institutions participating in Title IV programs to demonstrate financial responsibility by meeting a ratio requirement. The component of the ratio, as defined by the U.S. Department of Education, include cash and cash equivalents of $127,868,975, current accounts and contributions receivable of $18,169,446 and current liabilities of $15,165,197.