Audit 341199

Title: Note 1: Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the "schedule") includes the federal award activity 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). 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, whereas certain types of expenditures are now allowable or are limited as to reimbursement. The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity 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). 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, whereas certain types of expenditures are not allowable or are limited as to reimbursement. The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance.

Title: Note 2: Federal Student Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the "schedule") includes the federal award activity 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). 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, whereas certain types of expenditures are now allowable or are limited as to reimbursement. The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. The federal student loan programs listed subsequently are administered directly by the University, and balances and transactions relating to these programs are included in the 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: Federal Assistance Listing and Program Name - Outstanding Balance at June 30, 2024 84.038 - Federal Perkins Loans - $286,432 93.264 - Nurse Factuly Loan Program - $535,490 93.342 - Health Professional Student Loans - $948,617 93.364 - Nursing Student Loan - $1,045,933

Title: Note 3: Department of Housing and Urban Development 242 Loan Guarantee Accounting Policies: The accompanying schedule of expenditures of federal awards (the "schedule") includes the federal award activity 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). 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, whereas certain types of expenditures are now allowable or are limited as to reimbursement. The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University did not use the 10% de minimis indirect rate allowed under the Uniform Guidance. During fiscal year 2005, the Regents of the University of New Mexico issued FHA Insured Hospital Mortgage Revenue Bonds for the construction of the Children’s Hospital and Critical Care Pavilion. In conjunction with the construction project, the Department of Housing and Urban Development, under Section 242 Federal Assistance Listing 14.128, issued a loan guarantee for the mortgage amount. As of June 30, 2024, $61,485,000 is outstanding and is considered subject to continuing compliance requirements under OMB Uniform Guidance. During fiscal year 2011, the Sandoval Regional Medical Center (SRMC) issued FHA Insured Hospital Mortgage Revenue Bonds for the construction of the Sandoval Regional Medical Center. In conjunction with the construction project, the Department of Housing and Urban Development, under Section 242 Federal Assistance Listing 14.128, issued a loan guarantee for the mortgage amount. As of June 30, 2024, $88,915,828 is outstanding and is considered subject to continuing compliance requirements under OMB Uniform Guidance.