Audit 28941

Accounting Policies: Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Wallace State Community Colllege (the College), under programs of the federalgovernment for the year ended September 30, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the schedule presents only a selected portion of the operations of the College, itis not intended to and does not present the financial position, changes in net position, or cash flowsof the College.Expenditures 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.Note 2: INDIRECT COST RATEThe Uniform Guidance allows an organization to elect a 10% de minimums indirect cost rate. For theyear ended September 30, 2022, the College did not elect to use this rate.Note 3: LOAN / LOAN GUARANTEE OUTSTANDING BALANCESThe College did not have any federal loans or loan guarantees outstanding during the year endedSeptember 30, 2022.Note 4: NONCASH ASSISTANCE AND OTHERThe College did not receive any noncash assistance or federally funded insurance during the yearended September 30, 2022.Note 5: CONTINGENCIESGrant monies received and disbursed by the College are for specific purposes and are subject toreview by the grantor agencies. Such audits may result in requests for reimbursement due todisallowed expenditures. Based upon experience, the College does not believe that suchdisallowance, if any, would have a material effect on the financial position of the College.Note 6: FEDERAL PASSTHROUGH FUNDSThe College is also the subrecipient of federal funds that have been subjected to testing and arereported as expenditures and listed as federal passthrough funds. Federal awards other than those indicated as passthrough are considered to be direct. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.