Audit 333769

Title: General Accounting Policies: General, Basis of Accounting, Sub-Recipients, Balance of Outstanding Loans De Minimis Rate Used: N Rate Explanation: Did not use 10% de minimus or any indirect cost rate The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Northwest Minnesota Foundation and Subsidiaries under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with requirements of the 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 Northwest Minnesota Foundation and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets or cash flows of Northwest Minnesota Foundation and Subsidiaries.

Title: Basis of Accounting Accounting Policies: General, Basis of Accounting, Sub-Recipients, Balance of Outstanding Loans De Minimis Rate Used: N Rate Explanation: Did not use 10% de minimus or any indirect cost rate 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. Pass-through entity identifying numbers are presented where available.

Title: Sub-Recipients Accounting Policies: General, Basis of Accounting, Sub-Recipients, Balance of Outstanding Loans De Minimis Rate Used: N Rate Explanation: Did not use 10% de minimus or any indirect cost rate Northwest Minnesota Foundation and Subsidiaries do not have any sub-recipients of federal awards.

Title: Balance of Outstanding Loans Accounting Policies: General, Basis of Accounting, Sub-Recipients, Balance of Outstanding Loans De Minimis Rate Used: N Rate Explanation: Did not use 10% de minimus or any indirect cost rate The loan program listed subsequently are administered directly by Northwest Minnesota Foundation and Subsidiaries, and balances and transactions relating to these programs are included in Northwest Minnesota Foundation and Subsidiaries' basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2024, consists of: Program Name AL Number Outstanding Balance at June 30, 2024 Intermediary Lending Program 10.767 $236,551 Intermediary Lending Program 10.767 $0 Microloan Program 59.046 $47,156 Microloan Program 59.046 $266,307 Microloan Program 59.046 $110,370 Microloan Program 59.046 $368,501