Audit 15946

Title: NOTE C - FEDERAL STUDENT LOAN PROGRAM Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the College under programs of the federal government for the year ended June 30, 2022. The Schedule of Expenditures of Federal awards presents only a selected portion of the operations of the College; it is not intended to, and does not, present the financial position, changes in net position, and cash flows of the College. For the purposes of the Schedule of Expenditures of Federal Awards, 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 sub-awards to the College by non-federal organizations pursuant to federal grants, contracts and similar agreements. Federal awards are included in contracts and other exchange transactions on the accompanying statement of net position. NOTE B - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: NOTE E - INDIRECT COST RATE Indirect costs allocated to federal awards were based on predetermined rates negotiated with the College's cognizant federal agency. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federally guaranteed loans issued to students of the College during the year ended June 30, 2022 totaled $21,111,195. This amount has been included in the Schedule. The College is responsible only for the performance of certain administrative duties with respect to federally guaranteed student loan programs, and accordingly, these loans are not included in its financial statements.

Title: NOTE D - ADMINISTRATIVE COSTS Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the College under programs of the federal government for the year ended June 30, 2022. The Schedule of Expenditures of Federal awards presents only a selected portion of the operations of the College; it is not intended to, and does not, present the financial position, changes in net position, and cash flows of the College. For the purposes of the Schedule of Expenditures of Federal Awards, 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 sub-awards to the College by non-federal organizations pursuant to federal grants, contracts and similar agreements. Federal awards are included in contracts and other exchange transactions on the accompanying statement of net position. NOTE B - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: NOTE E - INDIRECT COST RATE Indirect costs allocated to federal awards were based on predetermined rates negotiated with the College's cognizant federal agency. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The College’s expenditures include administrative expenses of $38,170 for Federal Pell Grants, $5,727 in Federal Work Study, and $44,949 for Federal Supplemental Educational Opportunity Grants.