Audit 342408

Title: Federal Direct Student Loan Program (ALN #84.268) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Wallace State Community Colllege (the College), under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations 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. Expenditures reported on the Schedule are reported 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 has elected not to use the 10-percent de minimis rate allowed under the Uniform Guidance. The College participates in the Federal Direct Student Loan Program which provides Federal Direct Subsidized and Federal Direct Unsubsidized Loans to qualifying students. The College is not responsible for collection of these loans. During the year ended September 30, 2024, the College processed $8,118,472 of student loans under the Direct Loan Program (ALN #84.268).