Audit 32043

Accounting Policies: Note 1: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of Rose State College (the College) under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (theUniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe College, it is not intended to and does not present the financial position, changes in netposition, or cash flows of the College.Note 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. TheCollege has elected not to use the 10-percent de minimis indirect cost rate allowed under theUniform Guidance.Note 3: Federal Direct Student Loan ProgramThe College participates in the Federal Direct Loan Program (the Program), CFDA number84.268, which includes the Federal Subsidized Direct Loan, the Federal Unsubsidized DirectLoan, the Federal Graduate Student PLUS Direct Loan and Federal Direct Loans Parents ofUndergraduate Students. The Federal Direct Loan Program requires the College to draw downcash; and the College is required to perform certain administrative functions under the Program.Failure to perform such functions may require the College to reimburse the loan guaranteeagencies. The College is not responsible for the collection of these loans. The value of loansmade during the audit period are considered Federal awards expended for the audit period.Note 4: SubrecipientsDuring the year ended June 30, 2022, the College did not provide any federal awards tosubrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.