Audit 27104

Accounting Policies: (1) BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal awards activity of Redlands Community College (the College) under programs of thefederal government for the year ended June 30, 2022. The information in this Schedule ispresented 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 forFederal Awards (the Uniform Guidance). Because the Schedule presents only a selected portionof the operations of the College, it is not intended to and does not present the net position, changesin net position, or cash flows of the College.(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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, if any, shown on the Schedule represent adjustments or credits made in thenormal course of business to amounts reported as expenditures in prior years.(3) FEDERAL DIRECT STUDENT LOAN PROGRAMUnder the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department ofEducation makes loans to enable a student or parent to pay the costs of the students attendance ata postsecondary school. The Direct Loan Program enables an eligible student or parent to obtaina loan to pay for the students cost of attendance directly from the U.S. Department of Educationrather than through private lenders. The College administers the origination and disbursement ofthe loans to eligible students or parents. The College is not responsible for the collection of theseloans.(4) SUBRECIPIENTSDuring the year ended June 30, 2022, the College did not provide federal awards to subrecipients.(5) INDIRECT COST RATEThe College has a Negotiated Indirect Cost Rate Agreement (the Agreement) issued by the U.S.Department of Health and Human Services issued as of June 15, 2017. The negotiated rates wereapplied in accordance with the Agreement for the year ended June 30, 2022, except that certaingrants limited the rate charged. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.