Audit 12056

Accounting Policies: (1) Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards summarizes the expenditures of Shelby County Healthcare Corporation (d/b/a Regional One Health) under programs of the federal government for the year ended June 30, 2023. The accompanying Schedule of Expenditures of State of Tennessee Financial Assistance (collectively with the Schedule of Expenditures of Federal Awards, the “Schedules”) summarizes the expenditures of Regional One Health under programs of the state government for the year ended June 30, 2023. The amounts reported as federal and state expenditures in the Schedules were obtained from Regional One Health’s general ledger. Because the Schedules present only a selected portion of the operations of Regional One Health, they are not intended to, and do not, present the financial position, results of operations, changes in net position, and cash flows of Regional One Health. For purposes of the Schedules, federal awards include all grants, contracts, and similar agreements entered into directly between Regional One Health and agencies and departments of the federal government and all subawards to Regional One Health by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the audit 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). (2) Summary of Significant 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Regional One Health has not elected to utilize a de minimis indirect cost rate of 10% of total direct costs. (3) Federal Loan and Loan Guarantee Programs. Regional One Health did not expend any federal funds to support loan programs or loan guarantee programs. Regional One Health does not have federal loan balances outstanding as of June 30, 2023. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.