Audit 363371

Title: General 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, where certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Upper Great Lakes Family Health Center has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Upper Great Lakes Family Health Center under programs of the federal government for the year ended October 31, 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 Upper Great Lakes Family Health Center, it is not intended to and does not present the financial position, changes in net assets or cash flows of Upper Great Lakes Family Health Center.

Title: Reconciliation to the 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, where certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Upper Great Lakes Family Health Center has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal expenditures recorded on the Schedule of Expenditures of Federal Awards reconcile to the financial statements as follows: Federal operating grants per financial statements $ 4,543,183 Federal capital grants 755,964 Adjustments to prior year federal revenues to remove non-federal portion 25,530 USDA loan funds not revenue on financial statements 1,314,543 Federal revenues per SEFA $ 6,639,220

Title: Subrecipients 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, where certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Upper Great Lakes Family Health Center has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No amounts were provided to subrecipients.