Audit 350389

Title: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule.

Title: NOTE 2 - INDIRECT COST RECOVERY Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate.

Title: NOTE 3 - NONMONETARY FEDERAL FINANCIAL ASSISTANCE Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. Pandemic EBT Food Benefits – Expenditures of $3,895,351 reported in the Schedule under ALN 10.542, Pandemic EBT Food Benefits, represent actual disbursements for client purchases of authorized food products through use of electronic benefit cards during the year ended June 30, 2024. Supplemental Nutrition Assistance Program – Expenditures of $153,768,038 reported in the Schedule under ALN 10.551, Supplemental Nutrition Assistance Program, represent actual disbursements for client purchases of authorized food products through use of the electronic benefits card program during the year ended June 30, 2024. Donated Foods – The State distributes federal surplus food to institutions (schools, summer feeding programs, child and adult care facilities, hospitals and other not for profit charitable institutions) and to the needy. Expenditures are reported in the Schedule at the federally assigned value of the product distributed under the following U.S. Department of Agriculture federal programs:   ALN # Federal Program Amount 10.555 National School Lunch Program $ 4,548,657 10.558 Child and Adult Care Food Program 116,227 10.559 Summer Food Service Program for Children 3,442 10.565 Commodity Supplemental Food Program 940,930 10.569 Emergency Food Assistance Program (Food Commodities) 6,424,781 Total: $12,034,037 Vaccines – The State receives various childhood vaccines from the federal Centers for Disease Control and Prevention. The vaccines are distributed to children through free clinics, local hospitals, and doctors' offices. Expenditures of $14,967,175 included on the Schedule for ALN 93.268 Immunization Cooperative Agreements, represent the federal value assigned to the vaccines distributed.

Title: NOTE 4 – (ALN 17.225) UNEMPLOYMENT INSURANCE Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. The New Hampshire Department of Employment Security administers the Unemployment Insurance Program. The reported expenditures comprise the following: Unemployment Insurance COVID-19 Unemployment Service Totals State UC Benefits $ 48,105,180 $ - $ 48,105,180 Administrative Grants $ 12,734,631 $ 2,059,470 $ 14,794,101 Federal Employees $ 174,271 $ - $ 174,271 Ex-Servicemen $ 68,562 $ - $ 68,562 EUC08 $ (61,071) $ - $ (61,071) FAC $ (8,732) $ - $ (8,732) Trade Act $ (193) $ - $ (193) Extended Benefits $ - $ (4,101) $ (4,101) ATAA $ - $ - $ - Federal Pandemic Unemployment Compensation (FPUC) $ (530,497) $ (530,497) Pandemic Unemployment Assistance (PUA) $ (349,127) $ (349,127) Pandemic Emergency Unemployment Compensation (PEUC) $ (83,582) $ (83,582) Mixed Earners Unemployment Compensation (MEUC) $ (300) $ (300) Temp Comp Account for Waiting Week $ 4,847 $ 4,847 Short-Time Compensation (Federally Funded) $ - US Emergency Relief Account for Reimb. Employer 50% $ (11,492) $ (11,492) Total $ 61,012,648 $ 1,085,218 $ 62,097,866

Title: NOTE 5 - STATE ELECTION FUND – HELP AMERICA VOTE ACT (HAVA) Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. The State of New Hampshire has cumulatively received $30,880,384 from the United States General Services Administration in between state fiscal year 2003 and 2024 as part of the Help America Vote Act of 2002. The purpose of these funds are to establish minimum election administration standards for states and local governments with the responsibility for the administration of Federal elections. For these programs (CFDA # 39.011, 90.401, and 90.404) as of June 30, 2024, the State had expended a cumulative total of $21,258,447 of the $30,880,384 Election Reform payments received, leaving a remaining balance of $9,621,937. State Fiscal Year 2003 2004 2012 2017 2018 2019 2020 2021 2022 2023 2024 Help America Vote Act of 2002 Funds Received $ 5,000,000 $11,596,803 $ 1,425,000 $ - $ - $ 3,102,253 $ 6,741,788 $ 14,540 $ 1,000,000 $ 1,000,000 $ 1,000,000 Funds Expended $12,018,847 $ 486,087 $ 116,733 $ 1,918,256 $ 3,977,493 $ 1,097,596 $ 811,307 $ 832,128 Remaining Balance $ 5,000,000 $16,596,803 $18,021,803 $ 6,002,956 $ 5,516,869 $ 8,502,389 $13,325,921 $ 9,362,968 $ 9,265,372 $ 9,454,065 $ 9,621,937 Life to Date Totals Funds Received $ 30,880,384 Funds Expended $ 21,258,447 $ 9,621,937 The State of New Hampshire Office of the Secretary of State (Office) has taken a position of agreement with the National Association of Secretaries of State Resolution relative to the distinction between payments and grants. Accordingly, the Office believes that the Election Assistance Commission (“EAC”) does not have the statutory authority to apply rules outside HAVA when performing its section 902(b) function in auditing States. In as much as the Office has reported these payments in this report, it is the Office’s position that such reporting may not be required under the Single Audit Act, and this reporting is in no way meant to alter the position taken by the Secretary of State with respect to the character or status of these funds, or the authority of the EAC.

Title: NOTE 6 – (ALN 20.106) AIRPORT IMPROVEMENT PROGRAM Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. The State of New Hampshire’s schedule does not include funds related to the Federal Aviation Administration’s Airport Improvement Program (AIP) for grants sponsored by the cities of Manchester and Lebanon and the Pease Development Authority (except for block grants). The AIP funds included in the schedule represent those grants sponsored by the State.

Title: NOTE 7 – (ALN 97.036) DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS): Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. Expenditures of $41,851,050 reported as amounts passed through to subrecipients for Public Assistance Disaster Grants for fiscal year 2024 represent reimbursements to local entities for disasters that have approved project worksheets and expenditures incurred for fiscal years 2024 and prior. Expenditures of $120,792 of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2024. Expenditures of $6,841,119 of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2023. Expenditures of $46,193,787 of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2022. Expenditures of $15,465,432 of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2021. Expenditures of $343,962 of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2020. Expenditures of ($15,139) of Public Assistance Disaster Grant funds for fiscal year 2024 represent reimbursements of costs incurred by the State for disasters that have approved project worksheets and expenditures incurred for fiscal year 2018.

Title: NOTE 8 - CLUSTERED PROGRAMS Accounting Policies: NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule The accompanying Schedule of Expenditures of Federal Awards (the Schedule or the SEFA) is a supplementary schedule to the State’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. B. Reporting Entity The reporting entity is defined in the notes to the basic financial statements of the State of New Hampshire, which are presented in Section C of this report. The accompanying Schedule of Expenditures of Federal Awards includes all federal financial assistance programs of the State of New Hampshire reporting entity for the year ended June 30, 2024, with the exception of certain component units identified in Note 1 of the basic financial statements. C. Basis of Presentation The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with the U.S. Code of Federal Regulations Title 2; Grants and Agreements Part 200; Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Per §200.1 Definitions: Federal award has the meaning, depending on the context, in either paragraph (1) or (2) of this definition: (1) (i) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity; or (ii) The cost-reimbursement contract under the Federal Acquisition Regulations that a non-Federal entity receives directly from a Federal awarding agency or indirectly from a pass-through entity. (2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of Federal financial assistance or the cost-reimbursement contract awarded under the Federal Acquisition Regulations. (3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs). Federal financial assistance means: (1) Assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other financial assistance NOTE 1 – PURPOSE OF SCHEDULE AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (2) Federal financial assistance also includes assistance that non-Federal entities receive or administer in the form of loans, loan guarantees, interest subsidies; and insurance. (3) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i) specifying: (h) Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. (i) Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The State of New Hampshire does require Medicaid payments to subrecipients be treated as Federal awards reimbursing those costs on a cost reimbursement basis. Medicaid payments to subrecipients are reported on the schedule. Nonmonetary federal assistance, as described in Note 3, is reported as federal financial assistance on the Schedule. Type A and Type B Programs – §200.518 establishes the levels of expenditures to be used in defining for the State of New Hampshire Type A and Type B federal financial assistance programs. Type A programs are those programs and clusters of programs that equal or exceed $9,519,591 in federal expenditures, distributions, or issuances for the year ended June 30, 2024. Programs selected for audit are in bold print in the accompanying Schedule. Pass Thru Percent – The amount of federal funds, expressed as a percentage of expenditures, passed through by State agencies to various non-state subrecipients. Amounts Provided to Subrecipients – The amount of federal funds passed through by State agencies to various non-state subrecipients expressed in dollars. D. Basis of Accounting Expenditures for all programs are presented in the Schedule on the cash basis of accounting. Expenditures are recorded when paid rather than when the obligation is incurred. For the Public Assistance Disaster Grants (ALN 97.036), expenditures are only eligible for reimbursement subsequent to approved project worksheets from the U.S. Department of Homeland Security regardless of the date the underlying expenditures were incurred. For the Public Assistance Disaster Grants, the Schedule includes cash reimbursements received during fiscal year 2024. Underlying expenditures were incurred in fiscal years 2018 through 2024 as follows: 2024 $ 120,792 2023 $ 6,841,119 2022 $ 46,193,787 2021 $ 15,465,432 2020 $ 343,962 2018 $ (15,139) Total $ 68,949,953 The Schedule reflects federal expenditures for all individual grants, which were active during the fiscal year and are net of program refunds applicable to a program.   E. Categorization of Expenditures The categorization of expenditures by program included in the Schedule is based upon the System of Award Management’s Assistance Listings, formerly the Catalog of Federal Domestic Assistance, as required by the Uniform Administrative Guidance of Title 2 Section 200 of the Code of Federal Regulations. Changes in the categorization of expenditures occur based upon revisions to the assistance listing. The Schedule reflects assistance listing changes issued through June 2024. Federal programs that do not have an assigned number are denoted with the a “U” followed by a two digit extension, ie; ##.U01. The numerical identification of the State agency responsible for administering each federal program is also noted on the accompanying schedule. See Appendix A in section H of this report for the legend of State agency identification numbers. The COVID 19 pandemic resulted in significant federal awards with the express intention of assisting states in responding to and recovering from the public health and economic impacts of the pandemic. Federal awards received specifically as a result of the COVID 19 pandemic are separately denoted in the schedule. De Minimis Rate Used: Both Rate Explanation: NOTE 2 - INDIRECT COST RECOVERY The following New Hampshire state agencies have elected to utilize the 10% de minimis cost rate as allowed per 2 CFR 200.414: • The Governor’s Office of Emergency Relief and Recovery • Department of Information Technology • NH Judicial Council • Department of Agriculture, Markets and Food • The Department of Justice • Department of Corrections • Department of Revenue Administration • Pease Development Authority The remaining agencies and departments of the State have historically negotiated indirect cost recovery rates with their cognizant federal agencies and do not utilize the 10% de minimus cost rate. NOTE 8 - CLUSTERED PROGRAMS Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards codified at 2 CFR 200 defines a “cluster” as “a grouping of closely related programs that share common compliance requirements.” The table below details the federal programs included in the Schedule that are required to be “clustered” for purposes of testing federal compliance requirements and identifying Type A programs. ALN Program Title Expenditures Supplemental Nutrition Assistance Program (SNAP) Cluster 10.551 Supplemental Nutrition Assistance Program (SNAP) 153,768,038 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 12,460,429 SNAP Cluster Total $ 166,228,467 Child Nutrition Cluster 10.553 School Breakfast Program (SBP) 5,983,956 10.555 National School Lunch Program (NSLP) 33,569,869 10.556 Special Milk Program for Children (SMP) 31,383 10.559 Summer Food Service Program for Children (SFSPC) 959,850 10.582 Fresh Fruit and Vegetable Program (FFVP) - Child Nutrition Cluster Total $ 40,545,058 Food Distribution Cluster 10.565 Commodity Supplemental Food Program 1,184,043 10.568 Emergency Food Assistance Program (Administrative Costs) 549,556 10.569 Emergency Food Assistance Program (Food Commodities) 6,424,781 Food Distribution Cluster Total $ 8,158,380 Forest Service Schools and Roads Cluster 10.665 Schools and Roads–Grants to States 447,052 10.666 Schools and Roads–Grants to Counties - $ 447,052 Economic Development Cluster 11.300 Investments for Public Works and Economic Development Facilities - 11.307 Economic Adjustment Assistance 1,079,455 Economic Development Cluster Total $ 1,079,455 Fish and Wildlife Cluster 15.605 Sport Fish Restoration Program 3,614,810 15.611 Wildlife Restoration and Basic Hunter Education 5,876,734 15.626 Enhanced Hunter Education and Safety Program 43,837 Fish and Wildlife Cluster Total $ 9,535,381 Employment Service Cluster 17.207 Employment Service/Wagner – Peyser Funded Activities 4,182,167 17.801 Jobs for Veterans State Grants 720,071 Employment Service Cluster Total $ 4,902,238 Workforce Investment Opportunity Act (WIOA) Cluster 17.258 WIOA Adult Program 3,881,047 17.259 WIOA Youth Activities 2,687,458 17.278 WIOA Dislocated Worker Formula Grants 3,607,638 WIOA Cluster Total $ 10,176,143 FMCSA Cluster 20.218 Motor Carrier Safety Assistance Program 1,429,579 20.237 High Priority Grant Program 8,227 FMCSA Cluster Total $ 1,437,806 Federal Transit Cluster 20.500 Federal Transit - Capital Investment Grants (Fixed Guideway Capital Investment Grants) - 20.507 Federal Transit – Formula Grants (Urbanized Area Formula Program) 3,780,159 20.525 State of Good Repair Grants Program - 20.526 Bus and Bus Facilities Formula & Discretionary Programs (Bus Program) 1,318,685 Federal Transit Cluster Total $ 5,098,844 Transit Services Programs Cluster 20.513 Enhanced Mobility of Seniors and Individuals With Disabilities 2,207,097 20.516 Job Access and Reverse Commute Program - 20.521 New Freedom Program - Transit Services Programs Cluster Total $ 2,207,097   Highway Safety Cluster 20.600 State and Community Highway Safety 2,641,328 20.616 National Priority Safety Programs 1,684,678 Highway Safety Cluster Total $ 4,326,006 Special Education Cluster 84.027 Special Education-Grants to States (IDEA, Part B) 51,335,751 84.173 Special Education-Preschool Grants (IDEA Preschool) 1,705,347 Special Education Cluster Total $ 53,041,098 Aging Cluster 93.044 Special Programs for the Aging--Title III, Part B—Grants for Supportive Services and Senior Centers, CARES Act for Supportive Services Under Title III-B of the Older Americans Act, and American Rescue Plan for Supportive Services Under Title IIIB of the Older Americans Act 3,129,655 93.045 Nutrition Services and CARES Act for Nutrition Services Under Title III-C of the Older Americans Act, CARES Act for Nutrition Services Under Title III-C of the Older Americans Act, and American Rescue Plan for Nutrition Services Under Title III-C of the Older Americans Act 5,694,494 93.053 Nutrition Services Incentive Program 1,307,784 Aging Cluster Total $ 10,131,933 CCDF Cluster 93.489 Child Care Disaster Relief - 93.575 Child Care and Development Block Grant 22,410,257 93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund 12,158,575 CCDF Cluster Total $ 34,568,832 Head Start Cluster 93.356 Head Start Disaster Recovery from Hurricanes Harvey, Irma, and Maria - 93.600 Head Start 118,877 Head Start Cluster Total $ 118,877   Medicaid Cluster 93.775 State Medicaid Fraud Control Units 769,538 93.777 State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 1,924,659 93.778 Medical Assistance Program 1,517,762,636 Medicaid Cluster Total $ 1,520,456,833 Disability Insurance/SSI Cluster 96.001 Social Security--Disability Insurance (DI) 8,855,547 96.006 Supplemental Security Income (SSI) - Disability Insurance/SSI Cluster Total $ 8,855,547