Audit 15638

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule 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. 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 System has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the System under programs of the federal government for the year ended June 30, 2023. 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 the System, it is not intended to and does not present the financial position, changes in net position or cash flows of the System. The following colleges are included within the Schedule above: • Ashland Community and Technical College • Big Sandy Community and Technical College • Bluegrass Community and Technical College • Elizabeth Community and Technical College • Gateway Community and Technical College • Hazard Community and Technical College • Henderson Community College • Hopkinsville Community College • Jefferson Community and Technical College • Madisonville Community College • Maysville Community and Technical College • Owensboro Community and Technical College • Somerset Community College • Southcentral Kentucky Community and Technical College • Southeast Kentucky Community and Technical College • West Kentucky Community and Technical College