Audit 4587

Title: Guaranteed Student Loans Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal grant activity of Trinity Baptist College, Inc. and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The College has not elected to use the 10% de minimis indirect cost rate as allowed under Section 200.141(f) of the Uniform Guidance. Guaranteed student loans, including subsidized and unsubsidized Stafford loans and PLUS loans, are presented on the basis of the amount of the loans awarded and are made by the Secretary of Education rather than by the College. Due to this program's being a transaction between the student and the loan origination center, these loans are not recorded in the College's financial statements. Due to the College's responsibility for determining eligibility and administering the loans, they have been included in the schedule of federal awards.