Audit 321634

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state grant activity of Lake Superior Community Health Center, Inc. (the Health Center) under programs of the federal and state governments for the year ended December 31, 2023. The information in the 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 (the Uniform Guidance), and the State Single Audit Guidelines, issued by the Wisconsin Department of Administration. Because the Schedule presents only a selected portion of the operations of the Health Center, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Health Center.

Title: SUBRECIPIENTS Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Health Center passed no federal awards through to subrecipients.