Audit 295533

Title: LOAN PROGRAMS Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of College of Southern Maryland (the College) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, change in net assets or cash flows of the College. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule of Expenditures of Federal Awards are presented 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. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis cost rate for indirect costs. During the year ended June 30, 2023, the College processed the following amount of new loans under the Federal Direct Lending Program. Since this program is administered by outside financial institutions, new loans made during the fiscal year relating to this program are considered current year expenditures in the schedule. ALN -- Program Name -- Loan Expenditures 84.268 -- Federal Direct Lending -- $4,842,090