Audit 359093

Title: 1. Scope of Audit Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. All expenses and capital outlays are reported as expenditures. 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. The College recognizes contributions from the federal government when qualifying expenditures are incurred. The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). The College does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). Guam Community College (the College) is a component unit of the Government of Guam established by the enactment of Public Law 14-77, “The Community College Act of 1977.” Only the transactions of the College are included within the scope of the Single Audit.

Title: 2. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. All expenses and capital outlays are reported as expenditures. 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. The College recognizes contributions from the federal government when qualifying expenditures are incurred. The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). The College does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of 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 assets or cash flows of the College.

Title: 3. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. All expenses and capital outlays are reported as expenditures. 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. The College recognizes contributions from the federal government when qualifying expenditures are incurred. The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). The College does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the College maintains its accounting records. All expenses and capital outlays are reported as expenditures. 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. The College recognizes contributions from the federal government when qualifying expenditures are incurred. The College elected to use the 8% indirect cost rate in the Education Department General Administrative Regulations (EDGAR). The College does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance.