Audit 20740

Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Scotland Health Care System, under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Scotland Health Care System, it is not intended to and does not present the net assets, changes in net assets, or cash flows of Scotland Health Care System. SUMMARY OF SIGNIFICANT 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 for all. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The combined financial statements reflect revenue recognized from COVID-19 Provider Relief Funds of approximately $7,980,000 and $12,792,000 for the years ended September 30, 2022 and 2021, respectively. The SEFA includes COVID-19 Provider Relief Funds of $2,900,000 that were received in Period 2 in accordance with the requirements of the compliance supplement for assistance listing number 93.498. Of this amount, approximately $420,000 and $2,480,000 was recognized in the combined financial statements for the years ended September 30, 2022 and 2021, respectively. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.