Audit 300081

Title: Note 1: Financial assistance reconciliation Accounting Policies: The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. Federal revenues per Schedule A: Federal grants and contracts $ 3,452,526 Add: Non-operating federal revenue from Schedule C 4,380,665 Add: Direct student loans 1,871,780 Add: Donation of federal surplus personal property 2,275 Total Federal Revenues per Schedule of Expenditures of Federal Awards $ 9,707,246

Title: Note 2: Significant accounting policies used in preparing the schedule Accounting Policies: The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414.

Title: Note 3: Expenditures not subject to federal single audit Accounting Policies: The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. All federal expenditures reported in the financial statements are subject to a federal single audit.

Title: Note 4: Nonmonetary federal assistance received Accounting Policies: The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. The District received $2,275 in federal surplus personal property under CFDA 39.003 from the General Services Commission passed through the Texas Facilities Commission.

Title: Note 5: Amounts passed through by Howard County Junior College District Accounting Policies: The expenditures included in the schedule are reported for the District’s fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds that have been expended by the District for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from the amounts used in the preparation of the basic financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The District has followed all applicable guidelines issued by various entities in the preparation of the schedule. The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost as permitted in the Uniform Guidance, Section 200.414. The District did not pass through any federal assistance during the fiscal year.