Audit 17698

Title: Provider Relief Fund Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of HonorHealth and is presented using the accrual basis of accounting. The information in the SEFA 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). For purposes of the SEFA, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loan and loan guarantees, or other noncash assistance. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protected equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. Honorhealth has reimbursement-type grant contracts and noncash federal grant contracts. Payments of federal awards received under the terms of the reimbursement-type grant contracts are used to reimburse HonorHealth's allowable program expenditures. Noncash federal expenditures are reported on the SEFA based on the total pounds of food distributed by HonorHealth multiplied by the fair value per pound of food, as of the receipt date, as determined by Feeding America to the Arizona Association of Foodbanks. HonorHealth does not pass any federal awards to subrecipients. De Minimis Rate Used: Y Rate Explanation: 2. Indirect Costs: HonorHealth has elected to use the 10% de minimis indirect cost rate allowed by the Uniform Guidance. 3. Provider Relief Fund: The amount presented on the SEFA for Assistance Listing Number 93.498, COVID 19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds), is for the year ended December 31, 2022. The amount presented in the table below reconciles to the Provider Relief Fund (PRF) information reported to the Health Resources and Services Administration (HRSA) as follows: See the Notes to the SEFA for table. Health and Human Services (HHS) has indicated the PRF Funds on the SEFA be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). The SEFA includes $2,874,519 of PRF Funds received from HHS between January 1, 2021 through December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 3 and Period 4. Such amount was recognized as provider relief funds in HonorHealth's consolidated financial statements in the year ended December 31, 2021.