Audit 9316

Title: NOTE 2 – FEDERAL ASSISTANCE RECONCILIATION Accounting Policies: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE The Schedule of Expenditures of Federal Awards presents the federal grant activity of the System for the year ended August 31, 2023. The schedule is presented using the accrual basis of accounting. The expenditures reported in the schedule represent funds which have been expended by the System for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The System has followed all applicable guidelines issued by various entities in the preparation of the schedule. Since the System utilizes an agency approved Indirect Recovery Rate, it has elected not to use the 10% de Minimis cost rate as permitted under the Uniform Guidance, Section 200.414 De Minimis Rate Used: N Rate Explanation: See note 1, last sentence. See notes to SEFA for table/chart.

Title: NOTE 3 – EXPENDITURES NOT SUBJECT TO FEDERAL SINGLE AUDIT Accounting Policies: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE The Schedule of Expenditures of Federal Awards presents the federal grant activity of the System for the year ended August 31, 2023. The schedule is presented using the accrual basis of accounting. The expenditures reported in the schedule represent funds which have been expended by the System for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The System has followed all applicable guidelines issued by various entities in the preparation of the schedule. Since the System utilizes an agency approved Indirect Recovery Rate, it has elected not to use the 10% de Minimis cost rate as permitted under the Uniform Guidance, Section 200.414 De Minimis Rate Used: N Rate Explanation: See note 1, last sentence. See notes to SEFA for table/chart.

Title: NOTE 4 – STUDENT LOANS PROCESSED AND ADMINISTRATIVE COSTS RECOVERED Accounting Policies: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE The Schedule of Expenditures of Federal Awards presents the federal grant activity of the System for the year ended August 31, 2023. The schedule is presented using the accrual basis of accounting. The expenditures reported in the schedule represent funds which have been expended by the System for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The System has followed all applicable guidelines issued by various entities in the preparation of the schedule. Since the System utilizes an agency approved Indirect Recovery Rate, it has elected not to use the 10% de Minimis cost rate as permitted under the Uniform Guidance, Section 200.414 De Minimis Rate Used: N Rate Explanation: See note 1, last sentence. See notes to SEFA for table/chart.

Title: NOTE 5 - AMOUNTS PASSED THROUGH BY THE SYSTEM TO SUBRECIPIENTS Accounting Policies: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE The Schedule of Expenditures of Federal Awards presents the federal grant activity of the System for the year ended August 31, 2023. The schedule is presented using the accrual basis of accounting. The expenditures reported in the schedule represent funds which have been expended by the System for the purposes of the award and may not have been reimbursed by the funding agencies as of the end of the fiscal year. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The System has followed all applicable guidelines issued by various entities in the preparation of the schedule. Since the System utilizes an agency approved Indirect Recovery Rate, it has elected not to use the 10% de Minimis cost rate as permitted under the Uniform Guidance, Section 200.414 De Minimis Rate Used: N Rate Explanation: See note 1, last sentence. The following amounts were passed through to the listed sub-recipients by the System and are included in the Schedule of Expenditure of Federal Awards. The below amount was funded by the U.S. Department of Labor WIOA Dislocated Work Formula grant; ALN 17.278 See notes to SEFA for table/chart.