Audit 321173

Title: 1. BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards—statutory basis (the “Schedule”) summarizes the expenditures of Excellus Health Plan, Inc. (the “Company”) under the State Children’s Health Insurance Program 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 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 Company, it is not intended to and does not present the financial position, activities, and cash flows of the Company. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Company and agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The Company’s Schedule has been prepared on the basis of accounting practices prescribed or permitted by the New York State Department of Financial Services (“statutory basis”) and is not intended to be presented in conformity with accounting principles generally accepted in the United States of America. The Company did not elect to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accounting practices that are prescribed or permitted under statutory authority which may vary from accounting principles generally accepted in the United States of America do not have a material impact on the accompanying schedule of expenditures of federal awards—statutory basis. The accompanying schedule of expenditures of federal awards—statutory basis (the “Schedule”) summarizes the expenditures of Excellus Health Plan, Inc. (the “Company”) under the State Children’s Health Insurance Program 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 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 Company, it is not intended to and does not present the financial position, activities, and cash flows of the Company. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Company and agencies and departments of the federal government.

Title: 2. BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule of expenditures of federal awards—statutory basis (the “Schedule”) summarizes the expenditures of Excellus Health Plan, Inc. (the “Company”) under the State Children’s Health Insurance Program 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 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 Company, it is not intended to and does not present the financial position, activities, and cash flows of the Company. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Company and agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The Company’s Schedule has been prepared on the basis of accounting practices prescribed or permitted by the New York State Department of Financial Services (“statutory basis”) and is not intended to be presented in conformity with accounting principles generally accepted in the United States of America. The Company did not elect to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accounting practices that are prescribed or permitted under statutory authority which may vary from accounting principles generally accepted in the United States of America do not have a material impact on the accompanying schedule of expenditures of federal awards—statutory basis. The Company’s Schedule has been prepared on the basis of accounting practices prescribed or permitted by the New York State Department of Financial Services (“statutory basis”) and is not intended to be presented in conformity with accounting principles generally accepted in the United States of America. The Company did not elect to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accounting practices that are prescribed or permitted under statutory authority which may vary from accounting principles generally accepted in the United States of America do not have a material impact on the accompanying schedule of expenditures of federal awards—statutory basis.