Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: Expenditures are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: the de minimis cost rate was not used.
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Houston Baptist University (d/b/a Houston Christian University) (the 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 (CFR) Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of the University, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Houston Christian University.
Title: Note B - Summary of Significant Accounting Policies
Accounting Policies: Expenditures are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: the de minimis cost rate was not used.
Expenditures reported on the Schedule of Expenditures of Federal Awards 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.
Title: Note C - De Minimis Indirect Cost Rate
Accounting Policies: Expenditures are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: the de minimis cost rate was not used.
The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note D - Noncash Assistance
Accounting Policies: Expenditures are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: the de minimis cost rate was not used.
The University is involved in various programs for which federal financial assistance is provided to the University’s students or students’ parents in the form of loan guarantees; such programs do not involve a cash outlay of federal funds received by the University. The University aids in determining, among other things, the eligibility of students to participate in these programs and provides documentation to the entity providing the federal financial assistance to the students