Audit 22542

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note A - Accounting Policies- The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The expenditure threshold for classification as a Type A program is $750,000.The Organization has elected not to use the 10% de minimis indirect cost rate allowed under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards ("Uniform Guidance").There were no awards passed through to subrecipients. Note B - Non-Cash Assistance The Organization did not receive or expend federal awards during fiscal year 2022 in the form of non-cash assistance. Note C - Reconciliation to Statement of Financial Position and Statement of Activities- Total Receivable balance at June 30, 2022 per Schedule of Expenditures of Federal ("SEFA") $156,491 and state awards $43,677, equals $200,168. Receivables included in other accounts receivable (42,177) Federal and State grants receivable per Statement of Financial Position $157,991. Total Federal amounts earned per SEFA $6,120,355 and state awards $235,937, equals $6,356,292. Rural Development Community Facilities Loan (2,761,703) Claims Reimbursement for the Uninsured included in patient service revenue for the year ended June 30, 2022 (41,851) Total of direct Federal grants and State of Tennessee grants included in the Statement of Activities $3,552,738 Note D - Uniform Guidance The SEFA includes the federal award activity of Community Health of East Tennessee, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this SEFA is presented in accordance with the requirements of the Uniform Guidance. Because the SEFA presents only a selected portion of the operations of Community Health of East Tennessee, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Health of East Tennessee, Inc. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL DEVELOPMENT COMMUNITY FACILITIES LOAN (10.780) - Balances outstanding at the end of the audit period were 2761703.