Audit 18020

Title: Provider Relief Fund Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the activity of all federal award programs of St. Joseph's Rehabilitation Center, Inc.; St. Josephs Rehabilitation Center Foundation; and Rose Hill Foundation, Inc. (the Organizations) under programs of the federal government for the year ended December 31, 2022 and has been prepared in accordance with accounting principles generally accepted in the United States. 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 Organizations, it is not intended to, and does not, present the financial position, change in net assets, or cash flows of the Organizations. Expenditures on the Schedule are reported on the accrual basis of accounting, except as disclosed in Note 4 with respect to the Provider Relief Fund. 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. De Minimis Rate Used: N Rate Explanation: The Organizations did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes amounts related to the U.S. Department of Health and Human Services (HHS) Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Assistance Listing Number 93.448). As required by the OMB Compliance Supplement, the Schedule includes all Period 3 funds received between January 1, 2021 and June 30, 2021, and Period 4 funds received between July 1, 2021 and December 2021, as reported to HHS via the Provider Relief Fund Reporting Portal. Therefore, based on the periods covered by Periods 3 and 4, certain expenditures reported on the Schedule were either reported as expenses in the Organizations 2021 consolidated financial statements or represent lost revenue calculated in accordance with the terms of the program, and are reconciling items between the expenditures reported on the Schedule and the Organizations 2022 consolidated financial statements.