Audit 335395

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. For the purposes of the Schedule, federal awards include the following: • Direct federal awards • Pass-through funds received from non-federal organizations made under federally sponsored programs conducted by those organizations All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the College received the federal award. Catalog of Federal Domestic Assistance (“CFDA”) Numbers and Pass-Through Numbers are presented for those programs for which such numbers are available. De Minimis Rate Used: N Rate Explanation: The College has not elected to use the 10% de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) reflects the expenditures of Stark State College (the “College”) under programs financed by U.S. Government for the year ended June 30, 2023. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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, changes in net position, or cash flows of the College.

Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. For the purposes of the Schedule, federal awards include the following: • Direct federal awards • Pass-through funds received from non-federal organizations made under federally sponsored programs conducted by those organizations All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the College received the federal award. Catalog of Federal Domestic Assistance (“CFDA”) Numbers and Pass-Through Numbers are presented for those programs for which such numbers are available. De Minimis Rate Used: N Rate Explanation: The College has not elected to use the 10% de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the College received the federal award. Catalog of Federal Domestic Assistance (“CFDA”) Numbers and Pass-Through Numbers are presented for those programs for which such numbers are available. For the purposes of the Schedule, federal awards include the following: • Direct federal awards • Pass-through funds received from non-federal organizations made under federally sponsored programs conducted by those organizations

Title: Note 3: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. For the purposes of the Schedule, federal awards include the following: • Direct federal awards • Pass-through funds received from non-federal organizations made under federally sponsored programs conducted by those organizations All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the College received the federal award. Catalog of Federal Domestic Assistance (“CFDA”) Numbers and Pass-Through Numbers are presented for those programs for which such numbers are available. De Minimis Rate Used: N Rate Explanation: The College has not elected to use the 10% de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The College has not elected to use the 10% de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.