Audit 315791

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures for Federal student financial aid programs are recognized as incurred and include Pell program grants to students, the Federal share of students' FSEOG program grants and administrative cost allowances, where applicable. 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 Institute also makes loans to certain eligible students under Federal student loan programs directly through the U.S. Department of Education; however, only the current loan disbursements under the William D. Ford Federal Direct Loan program are included in the Schedule of Expenditures of Federal Awards, as the related outstanding loan balances are not included as current federal expenditures, as required. The Institute did not pass-through any federal awards to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The Institute has elected not 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”) reflects the expenditures of Hobart Institute of Welding Technology (the “Institute”) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Institute, it is not intended to, and does not, present the financial position, activities and cash flows of the Institute for the year ended December 31, 2023.

Title: MATCHING REQUIREMENTS Accounting Policies: Expenditures for Federal student financial aid programs are recognized as incurred and include Pell program grants to students, the Federal share of students' FSEOG program grants and administrative cost allowances, where applicable. 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 Institute also makes loans to certain eligible students under Federal student loan programs directly through the U.S. Department of Education; however, only the current loan disbursements under the William D. Ford Federal Direct Loan program are included in the Schedule of Expenditures of Federal Awards, as the related outstanding loan balances are not included as current federal expenditures, as required. The Institute did not pass-through any federal awards to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: The Institute has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain federal programs require the Institute to contribute non-federal funds (matching funds) to support federally-funded programs. The Institute has complied with the matching requirements. The expenditure of non-federal (matching) funds is not included on the Schedule.