Audit 3181

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Kentucky Wesleyan College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented 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 for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Kentucky Wesleyan College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented 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 for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: Federal Student Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Kentucky Wesleyan College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented 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 for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Perkins Loan Program is administered directly by the College and balances and transactions relating to this program are included in the College's financial statements. As of May 31, 2023, the College has fully liquidated their Federal Perkins Loan portfolio to the department of education is no longer participating in the program. The College is responsible only for the performanceof certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the College. It is not practical to determine the balance of loans outstanding to students and former students of the College under this program as of May 31, 2023. The current expenditures under the Federal Direct Loan Program of $3,469,990 are included in the accompany Schedule of Expenditures of Federal Awards.

Title: Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Kentucky Wesleyan College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented 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 for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.