Audit 346588

Title: General Accounting Policies: The schedule is presented using the accrual basis of account in accordance with Accounting Principles generally accepted in the United States of America. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of state awards includes the federal and state awards activity of Cape Fear Community College under programs of the State of NorthCarolina for the year ended June 30, 2024. The information in this Schedule of Federal and State Awards 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") as described in the Audit Manual for Governmental Auditors in North Carolina, and the State Single Audit Inplementation Act. 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 assets, or cash flows of the College.

Title: Basis of Accounting Accounting Policies: The schedule is presented using the accrual basis of account in accordance with Accounting Principles generally accepted in the United States of America. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis rate as allowed under the Uniform Guidance. The accompanying Schedule is presented using the accrual basis of accounting in accordance with Accounting Principles generally accepted in the United States of America. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. The College has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Subrecipients Accounting Policies: The schedule is presented using the accrual basis of account in accordance with Accounting Principles generally accepted in the United States of America. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis rate as allowed under the Uniform Guidance. The College did not incur any passed-through subrecipient expenditures during the fiscal year ended June 30, 2024.

Title: Indirect Cost Rate Accounting Policies: The schedule is presented using the accrual basis of account in accordance with Accounting Principles generally accepted in the United States of America. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis rate as allowed under the Uniform Guidance. The College has elected not to use the 10-percent de minimis rate as allowed under the Uniform Guidance.