Audit 334675

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting and include amounts expended by the University and its affiliated corporation, the University of Kentucky Research Foundation, Inc. Royal Blue Health, a blended component unit of Beyond Blue and the University, and North Fork Valley, a department of the University, expenditures are not included within the Scheule but are reported separately in their own single audit. Such expenditures are recognized following, as applicable, either the cost principles contained in the U.S. Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in The Uniform Guidance or other applicable regulatory guidance, wherein 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: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University either uses the negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of University of Kentucky (University) under programs of the federal government for the year ended June 30, 2024. 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 University, it is not intended to and does not present the financial position, changes in net position, or cash flows of the University.

Title: Federal Program Loans Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting and include amounts expended by the University and its affiliated corporation, the University of Kentucky Research Foundation, Inc. Royal Blue Health, a blended component unit of Beyond Blue and the University, and North Fork Valley, a department of the University, expenditures are not included within the Scheule but are reported separately in their own single audit. Such expenditures are recognized following, as applicable, either the cost principles contained in the U.S. Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in The Uniform Guidance or other applicable regulatory guidance, wherein 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: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University either uses the negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. The federal loan programs listed subsequently are administered directly by the University, and balances and transactions relating to these programs are included in University’s 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: “See the Notes to the SEFA for chart/table"