Audit 51286

Title: BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of Capitol Technology University (the University) are included in the scope of Title 2 U.S Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Uniform Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the grant program listed below. This program represents Federal award programs for fiscal year 2022 with cash and non-cash expenditures to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 97% of total cash and non-cash Federal award program expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) 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 University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the Federal award activity of the University under programs of the Federal government for the year ended June 30, 2022, and is presented on the accrual basis of accounting.

Title: LOAN PROGRAMS Accounting Policies: All Federal grant operations of Capitol Technology University (the University) are included in the scope of Title 2 U.S Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Uniform Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the grant program listed below. This program represents Federal award programs for fiscal year 2022 with cash and non-cash expenditures to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 97% of total cash and non-cash Federal award program expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) 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 University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loans (Assistance Listing 84.038) are administered directly by the University, and balances and transactions relating to these programs are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the Federal expenditures presented in the Schedule. There were no new loans expended under this program during the year ended June 30, 2021. The balance of loans outstanding as of June 30, 2022, was as follows: $757,340 under Federal Perkins Loans (Assistance Listing 84.038). During the year ended June 30, 2022, the University processed the following amount of new loans under the Federal Family Education Loan Programs, which includes the Stafford, PLUS Loans, and Direct Loans (Assistance Listing 84.268). These programs are administered by outside financial institutions. New loans made during the fiscal year relating to these programs are considered current year expenditures in the Schedule. Because these programs are administered by outside financial institutions, the outstanding balance as of June 30, 2021 is not included on the Schedule. The loan expenditures for the year ended June 30, 2022, was as follows: $5,224,340.

Title: RECONCILIATION Accounting Policies: All Federal grant operations of Capitol Technology University (the University) are included in the scope of Title 2 U.S Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Uniform Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the grant program listed below. This program represents Federal award programs for fiscal year 2022 with cash and non-cash expenditures to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 97% of total cash and non-cash Federal award program expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) 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 University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Total expenditures per the Schedule of Expenditures of Federal Awards reconciles to the Universitys financial statements for the year ended June 30, 2022 as follows:Amount Government grants per audited financial statements $ 2,550,838Less: state and local grants ( 524,272)Total Federal grants per audited financial statements 2,026,566Add: Federal Direct Student Loans 5,224,340Add: Federal Perkins Loans 780,776Federal Expenditures $ 8,031,682