Audit 15

Title: General Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting which is described in Note 1(D) of the College's financial statements. For financial reporting purposes, the College is considered a special-purpose government engaged only in businesstype activities. Accordingly, the College’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Student tuition and auxiliary enterprise fees are presented net of scholarships and fellowships applied to student accounts, while stipends and other payments made directly are presented as scholarship expenses. All significant intra-institutional transactions have been eliminated. De Minimis Rate Used: N Rate Explanation: The College has electetd not to use the 10% de minimus indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Piedmont Technical College. The reporting entity is defined in Note (1B) of the College's financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the schedule.

Title: Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting which is described in Note 1(D) of the College's financial statements. For financial reporting purposes, the College is considered a special-purpose government engaged only in businesstype activities. Accordingly, the College’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Student tuition and auxiliary enterprise fees are presented net of scholarships and fellowships applied to student accounts, while stipends and other payments made directly are presented as scholarship expenses. All significant intra-institutional transactions have been eliminated. De Minimis Rate Used: N Rate Explanation: The College has electetd not to use the 10% de minimus indirect cost rate. The College has students who have approved Federal Direct Loans. Those loans were disbursed to the students during the current fiscal year. The College is not the lender. The College only processes the loans for the lender, the Department of Education. The total Federal Direct Loans for the current fiscal year were $12,512,850.