Audit 346528

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes all federal grant transaction activity of the University of Michigan (the “University”) recorded on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. The information in the SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the “Uniform Guidance”). As the SEFA presents only the federal award activity of the University, it is not intended to and does not present the net position, changes in net position and cash flows of the University. Negative amounts presented in the SEFA represent adjustments, in the normal course of business, to expenditures reported in prior years. Complete Assistance Listing numbers and pass-through numbers are provided on the SEFA when available. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10 percent de minimus cost rate as described in Section 200.414 of the Uniform Guidance. The indirect cost rates approved by the University’s cognizant agency, the Department of Health and Human Services, for organized research, instruction and other sponsored activities through June 30, 2024 are as follows: July 1, 2023 – June 30, 2024 On-campus organized research 56% On-campus instruction 54% On-campus other sponsored activities 29% Off-campus all programs 26% The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes all federal grant transaction activity of the University of Michigan (the “University”) recorded on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. The information in the SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the “Uniform Guidance”). As the SEFA presents only the federal award activity of the University, it is not intended to and does not present the net position, changes in net position and cash flows of the University. Negative amounts presented in the SEFA represent adjustments, in the normal course of business, to expenditures reported in prior years. Complete Assistance Listing numbers and pass-through numbers are provided on the SEFA when available.

Title: Indirect Costs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes all federal grant transaction activity of the University of Michigan (the “University”) recorded on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. The information in the SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the “Uniform Guidance”). As the SEFA presents only the federal award activity of the University, it is not intended to and does not present the net position, changes in net position and cash flows of the University. Negative amounts presented in the SEFA represent adjustments, in the normal course of business, to expenditures reported in prior years. Complete Assistance Listing numbers and pass-through numbers are provided on the SEFA when available. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10 percent de minimus cost rate as described in Section 200.414 of the Uniform Guidance. The indirect cost rates approved by the University’s cognizant agency, the Department of Health and Human Services, for organized research, instruction and other sponsored activities through June 30, 2024 are as follows: July 1, 2023 – June 30, 2024 On-campus organized research 56% On-campus instruction 54% On-campus other sponsored activities 29% Off-campus all programs 26% The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10 percent de minimus cost rate as described in Section 200.414 of the Uniform Guidance. The indirect cost rates approved by the University’s cognizant agency, the Department of Health and Human Services, for organized research, instruction and other sponsored activities through June 30, 2024 are as follows: July 1, 2023 – June 30, 2024 On-campus organized research 56% On-campus instruction 54% On-campus other sponsored activities 29% Off-campus all programs 26%

Title: University-Administered Federal Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes all federal grant transaction activity of the University of Michigan (the “University”) recorded on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. The information in the SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the “Uniform Guidance”). As the SEFA presents only the federal award activity of the University, it is not intended to and does not present the net position, changes in net position and cash flows of the University. Negative amounts presented in the SEFA represent adjustments, in the normal course of business, to expenditures reported in prior years. Complete Assistance Listing numbers and pass-through numbers are provided on the SEFA when available. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10 percent de minimus cost rate as described in Section 200.414 of the Uniform Guidance. The indirect cost rates approved by the University’s cognizant agency, the Department of Health and Human Services, for organized research, instruction and other sponsored activities through June 30, 2024 are as follows: July 1, 2023 – June 30, 2024 On-campus organized research 56% On-campus instruction 54% On-campus other sponsored activities 29% Off-campus all programs 26% The federal loan programs listed below are administered directly by the University and outstanding balances related to these programs are included in the University’s financial statements. The amount of loans outstanding at the beginning of the year, loans made during the year and the administrative cost allowance are included in the SEFA. The balance of loans outstanding at June 30, 2024 consists of: FEDERAL PERKINS PROGRAM (84.038) - Balances outstanding at the end of the audit period were 12302604. NURSING FACULTY LOAN PROGRAM (93.264) - Balances outstanding at the end of the audit period were 4672410. HEALTH PROFESSIONS LOAN PROGRAM - (93.342) - Balances outstanding at the end of the audit period were 11126835. NURSING STUDENT LOAN (93.364) - Balances outstanding at the end of the audit period were 3141414. DISADVANTAGED STUDENT LOAN PROGRAM (93.925) - Balances outstanding at the end of the audit period were 3867204. See the Notes to the SEFA for chart/table.