Audit 344057

Title: Note 1 – Basis of Presentation Accounting Policies: Note 2 – Summary of Significant Accounting Policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. See Note B of the notes to the financial statements for Moncrief’s significant accounting policies. These expenditures are reported on Moncrief’s fiscal year, which is from September 1, 2023 to August 31, 2024. Expenditure reports to funding agencies are prepared based on award periods. Such expenditures are recognized following the cost principles in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moncrief has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: See note 2 above, last sentence. The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state grant activity of UT Southwestern Moncrief Cancer Center (“Moncrief”) under programs of the federal and state government for the year ended August 31, 2024. The information in this schedule is presented in accordance with the requirements of Office of Budget (“OMB”) Uniform Guidance (“Uniform Guidance”) and State of Texas Grant Management Standards (“TxGMS”). Because the Schedule presents only a selected portion of the operations of Moncrief, it is not intended to, and does not present the net position, changes in net position, or cash flows of Moncrief.

Title: Note 3 – Relationship to the Basic Financial Statements Accounting Policies: Note 2 – Summary of Significant Accounting Policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. See Note B of the notes to the financial statements for Moncrief’s significant accounting policies. These expenditures are reported on Moncrief’s fiscal year, which is from September 1, 2023 to August 31, 2024. Expenditure reports to funding agencies are prepared based on award periods. Such expenditures are recognized following the cost principles in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Moncrief has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: See note 2 above, last sentence. Federal and state awards revenues are reported in Moncrief’s basic financial statements as follows: See notes to SEFA for chart/table.