Audit 350027

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the Cost Principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The University has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the Wisconsin State Single Audit Guidelines. The accompanying Schedules of Expenditures of Federal and State Awards (the “schedules”) include the federal grant and state grant activity of Lakeland University and Affiliates (the “University”). The information in these schedules are 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) and the Wisconsin State Single Audit Guidelines. Because these schedules present only a selected portion of the operations of the University, it is not intended and does not present the financial position, changes in net assets or cash flows of the University.

Title: NOTE 3 – FEDERAL STUDENT FINANCIAL AID PROGRAM CLUSTER (THE CLUSTER) Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the Cost Principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The University has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the Wisconsin State Single Audit Guidelines. Federal awards to provide financial assistance to students are combined and considered to be a single program (Student Financial Aid Program Cluster) for major federal program determination. The amount of loans made during the year under federal government student loan programs are considered as disbursements for major program determination. The amounts included in the Schedules represent loans disbursed during the year, plus the related administrative charge. The Student Financial Aid Program Cluster represents the combination of awards by the U.S. Department of Education to provide financial assistance to students under the following programs: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Perkins Loan Program, Federal Pell Grant Program, Federal Direct Student Loans. The University receives awards to make loans to eligible students under certain federal government student loan programs and federally guaranteed loans are issued to the students of the University by the Secretary of Education. These loans are considered for purposes of determining whether student financial assistance is a major program under the Uniform Guidance. In addition, the Student Financial Aid Program Cluster includes the following federal government student loan programs which are administered by the Secretary of Education: Subsidized Stafford Loans, Unsubsidized Stafford Loans, Parent Loans for Undergraduate Students. The University is responsible only for the performance of certain administrative duties with respect to the federally guaranteed student loan programs, and, accordingly, these loans are not included in its financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs at June 30, 2024.

Title: NOTE 5 - SUBRECIPIENTS Accounting Policies: Expenditures reported on the schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the Cost Principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The University has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance and the Wisconsin State Single Audit Guidelines. The University did not pass any federal or state grant funding to any subrecipients for the year ending June 30, 2024.