Audit 291801

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. 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. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of University of Pikeville Inc. (the University) under programs of the federal government for the year ended June 30, 2023. 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. 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. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to this program are included in the University's financial statements. Loans outstanding at the beginning of the year plus loans made during the year are included in the federal expenditures presented in the Schedule. As of June 30, 2023, the University had loans outstanding totaling $74,684 under the Federal Perkins Loan Program. No new loans were awarded and disbursed for the year ended June 30, 2023. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the University. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program as of June 30, 2023. The current expenditures under the Federal Direct Loan Program of $48,610,628 are included in the accompanying schedule of expenditures of federal awards.