Audit 329815

Title: REPORTING ENTITY 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 for all awards. Under these principles, 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: Sawyer County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Sawyer County is governed by a board of supervisors consisting of fifteen elected members. The financial reporting entity for the County is based upon criteria set forth in generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The financial reporting entity is defined by GASB to consist of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The basic financial statements of the County consist of the primary government and a discretely presented component unit as described below. Component Unit Sawyer County/LCO Transportation Commission (Namekagon Transit Authority). The Sawyer County / LCO Transportation Commission (Namekagon Transit Authority) is overseen by a combined Sawyer County and Lac Courte Oreilles board. The Authority mainly serves areas in Sawyer County and the Lac Courte Oreilles reservation with some routes serving portions of Washburn and Barron Counties. The Authority is governed by a six-member board comprised of three members appointed by the Sawyer County Board and three members appointed by the Lac Courte Oreilles Board. The Authority is funded through a mix of federal and state deficit reduction grants, appropriations from Sawyer County and the Lac Courte Oreilles, along with ridership revenues, and in-kind local matches from Washburn and Barron Counties. The Authority leases its current facility from Sawyer County for a nominal amount. The Authority maintains its financial statements on a fiscal year ending December 31, 2023 and are presented in the County’s financial statements as a discretely presented component unit. The Authority’s financial statements are separately audited and can be obtained from Sawyer County.

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 for all awards. Under these principles, 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: Sawyer County 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 awards (the Schedule) includes the federal award activity of Sawyer County 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 2 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 Sawyer County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Sawyer County.

Title: CLAIMS PAID VIA THIRD PARTY ADMINISTRATOR 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 for all awards. Under these principles, 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: Sawyer County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Amounts shown as paid via Third Party Administrator (TPA) are payments made by a TPA for County authorized services. The TPA makes payments directly to service providers, and receives reimbursement for these services directly from the Wisconsin Department of Health Services (DHS). The activity between the TPA and service providers is not recorded in the County’s financial accounting system; however, DHS guidance dictates that these transactions are to be included in the Schedules of Expenditures of Federal Awards and State Financial Assistance.