Audit 342074

Title: Note 3 FEDERAL ASSISTANCE LISTING NUMBERS (ALN) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Minnesota (the University) and is prepared on the cash basis of accounting. The information presented in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget Circular Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the University’s consolidated financial statements. The University passes through certain funds to subgrantee organizations. The University is also the subrecipient of federal funds, which have been subject to testing and are reported as pass-through expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University utilized facilities and administrative rates that have been negotiated with and approved by its cognizant agency, the U.S. Department of Health and Human Services, and were effective for the period July 1, 2023 through June 30, 2024. For fiscal year 2024, the Organized Research rate was 55.0% and the Hormel Institute rate was 59.0%. The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Some of the programs, grants and/or other awards included in the Schedule are contracts, which do not report ALN numbers. The expenditure amounts related to these programs, grants and/or other awards have been reported, generally, at an agency level.

Title: NOTE 4 FEDERAL STUDENT LOAN PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Minnesota (the University) and is prepared on the cash basis of accounting. The information presented in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget Circular Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the University’s consolidated financial statements. The University passes through certain funds to subgrantee organizations. The University is also the subrecipient of federal funds, which have been subject to testing and are reported as pass-through expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University utilized facilities and administrative rates that have been negotiated with and approved by its cognizant agency, the U.S. Department of Health and Human Services, and were effective for the period July 1, 2023 through June 30, 2024. For fiscal year 2024, the Organized Research rate was 55.0% and the Hormel Institute rate was 59.0%. The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table

Title: NOTE 5 NEGATIVE EXPENDITURES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Minnesota (the University) and is prepared on the cash basis of accounting. The information presented in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget Circular Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the University’s consolidated financial statements. The University passes through certain funds to subgrantee organizations. The University is also the subrecipient of federal funds, which have been subject to testing and are reported as pass-through expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University utilized facilities and administrative rates that have been negotiated with and approved by its cognizant agency, the U.S. Department of Health and Human Services, and were effective for the period July 1, 2023 through June 30, 2024. For fiscal year 2024, the Organized Research rate was 55.0% and the Hormel Institute rate was 59.0%. The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. With the Schedule, there are negative amounts, which represent a credit or adjustment, net of the expenditure incurred.

Title: NOTE 6 RECONCILIATION OF FEDERAL AWARDS TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Minnesota (the University) and is prepared on the cash basis of accounting. The information presented in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget Circular Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the University’s consolidated financial statements. The University passes through certain funds to subgrantee organizations. The University is also the subrecipient of federal funds, which have been subject to testing and are reported as pass-through expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University utilized facilities and administrative rates that have been negotiated with and approved by its cognizant agency, the U.S. Department of Health and Human Services, and were effective for the period July 1, 2023 through June 30, 2024. For fiscal year 2024, the Organized Research rate was 55.0% and the Hormel Institute rate was 59.0%. The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table

Title: NOTE 7 STUDENT FINANCIAL AID INSTITUTIONAL AND PROGRAM ELIGIBILITY METRICS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Minnesota (the University) and is prepared on the cash basis of accounting. The information presented in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget Circular Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the University’s consolidated financial statements. The University passes through certain funds to subgrantee organizations. The University is also the subrecipient of federal funds, which have been subject to testing and are reported as pass-through expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University utilized facilities and administrative rates that have been negotiated with and approved by its cognizant agency, the U.S. Department of Health and Human Services, and were effective for the period July 1, 2023 through June 30, 2024. For fiscal year 2024, the Organized Research rate was 55.0% and the Hormel Institute rate was 59.0%. The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and federal regulations under 34 CFR 668.23: • Correspondence courses the University offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • University’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in nondegree programs at nonprofit institutions under 34 CFR 600(c)(3)(ii) and (g) • University’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) • Placement rates for short-term programs under 34 CFR 668.8(e)(2)