Notes to SEFA
Accounting Policies: The summary of significant accounting policies of Hallmark University, Inc. (University) is presented to assist in understanding the financial statements. The financial statements and notes are representations of the University's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (GAAP} and have been consistently applied in the preparation of the financial statements. Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. Significant estimates used in preparing these financial statements include those assumed in recording depreciation and amortization and the realizable value of accounts receivable. The value of intangible assets is based on the estimated fair market value at the date of acquisition. Additional estimates include the fair value of goodwill and indefinite useful lives of non-amortizable intangible assets. Actual results could vary from estimates.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.