Audit 18933

Accounting Policies: RURAL HEALTH MEDICAL PROGRAM, INC.NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2022NOTE 1 -BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the SEFA) summarizes the federal expenditures of the Program under programs of the federal government for the year ended June 30, 2022 and 2021. The amount reported as federal expenditures were obtained from the Programs general ledger. Because the SEFA presents only a selected portion of the operations of the Program, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Organization.For purposes of the SEFA, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass-through entities. The Program has obtained Assistance Listing numbers to ensure that all programs have been identified in the SEFA. Assistance Listing numbers have been appropriately listed by applicable programs. Federal programs with different Assistance Listing numbers that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance.NOTE 2 -RELATIONS OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTSThe amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agencies and the SEFA for the year end may differ. Some of the factors that may account for any differences include the following:?The Programs fiscal year end may differ from the programs year end.?Accruals recognized in the SEFA, because of year end procedures, may not be reported in the program financial reports until the next program reporting period.?Fixed asset purchased and the resultant depreciation charges are recognized as fixed assets in the Programs financial statements and as expenditures in the program financial reports.NOTE 3-BASIS OF ACCOUNTINGThis SEFA was prepared on the accrual basis of accounting. RURAL HEALTH MEDICAL PROGRAM, INC.NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2022 NOTE 4 -NONCASH ASSISTANCEThe Program did not receive any federal noncash assistance for the year ending June 30, 2022.NOTE 5 -COST RATEThe Program elected not to use the 10% de minimis cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.