Audit 352553

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization’s summary of significant accounting policies is presented in Note 1 to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Unless otherwise indicated in agreements with its grantors. The Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the Southwest Michigan Land Conservancy, Inc. (the “Organization”) under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is 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). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Organization.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization’s summary of significant accounting policies is presented in Note 1 to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Unless otherwise indicated in agreements with its grantors. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization’s summary of significant accounting policies is presented in Note 1 to the basic financial statements.

Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization’s summary of significant accounting policies is presented in Note 1 to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Unless otherwise indicated in agreements with its grantors. The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Unless otherwise indicated in agreements with its grantors.

Title: Note 4 - Reconciliation to Basic Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization’s summary of significant accounting policies is presented in Note 1 to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Unless otherwise indicated in agreements with its grantors. Federal expenditures of $1,148,495 from the September 30, 2024 Schedule of Expenditures of Federal Awards reconcile to grant revenues of $1,354,308, net of $205,813 of state and local funding recorded within the grant revenues.