Title: NOTE D - CONTINGENCY
Accounting Policies: All federal grant activities of Versiti, Inc. (Versiti) are included in the scope of the Uniform Grant Guidance. The Single Audit was performed in accordance with the provisions of the Uniform Grant Guidance. The Department of Health and Human Services (HHS) has been designated as Versiti's oversight agency. With the exception of funds received under the Provider Relief Fund, the accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. Grant revenue is recorded for financial reporting purposes when Versiti has met the qualifications for the respective grants. During 2021 and 2022, Versiti received HHS awards related to the Provider Relief Fund (PRF) program. HHS has indicated the amounts on the schedule of federal expenditures 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 in to the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e. after the end of the Period of Availability). The schedule of federal expenditures includes $0 received from HHS between January 1, 2021 to June 30, 2021. In accordance with guidance from HHS, no amounts are presented as Period 3. The schedule of federal expenditures also includes $165,761 received from HHS between July 1, 2021 to December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 4. Such amounts were recognized as grant revenue in Versiti's consolidated financial statements during the years ended December 31, 2022 and 2021.
De Minimis Rate Used: N
Rate Explanation: Versiti utilizes approved indirect cost rates and does not elect to use the 10% de minimis cost rate as covered in 2 CFR 200.414, Indirect (F&A) costs.
All federal awards are subject to review and audit by grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards. It is the opinion of management that all costs charged against federal awards are allowable under the regulations of those programs.
Title: NOTE E - PROGRAM INCOME
Accounting Policies: All federal grant activities of Versiti, Inc. (Versiti) are included in the scope of the Uniform Grant Guidance. The Single Audit was performed in accordance with the provisions of the Uniform Grant Guidance. The Department of Health and Human Services (HHS) has been designated as Versiti's oversight agency. With the exception of funds received under the Provider Relief Fund, the accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. Grant revenue is recorded for financial reporting purposes when Versiti has met the qualifications for the respective grants. During 2021 and 2022, Versiti received HHS awards related to the Provider Relief Fund (PRF) program. HHS has indicated the amounts on the schedule of federal expenditures 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 in to the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e. after the end of the Period of Availability). The schedule of federal expenditures includes $0 received from HHS between January 1, 2021 to June 30, 2021. In accordance with guidance from HHS, no amounts are presented as Period 3. The schedule of federal expenditures also includes $165,761 received from HHS between July 1, 2021 to December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 4. Such amounts were recognized as grant revenue in Versiti's consolidated financial statements during the years ended December 31, 2022 and 2021.
De Minimis Rate Used: N
Rate Explanation: Versiti utilizes approved indirect cost rates and does not elect to use the 10% de minimis cost rate as covered in 2 CFR 200.414, Indirect (F&A) costs.
Wisconsin operates a hemophilia treatment center, the Comprehensive Center for Bleeding Disorders (CCBD), under a federal grant sub-award from the Health Resources and Services Administration - Federal Assistance Listing Number #93.110. The grant sub-award, passed through from Great Lakes Hemophilia Foundation, Inc., allows Versiti to participate in the 340b Drug Pricing Program (Program), a federal program administered by the U.S. Department of Health and Human Services. During the year ended December 31, 2022, Wisconsin earned Program-related revenue (Program Income) of $39,074,000. Program Income generated under the grant is restricted in accordance with the terms and conditions of the grant and the use of such funds is limited to patient care, education and supportive services necessary to provide comprehensive care to CCBD patients. During the year ended December 31, 2022, Wisconsin expended $36,844,000 on expenses related to the sale of pharmaceutical product and uses of residual Program Income for operations of CCBD that comply with the restrictions on Program Income in accordance with the grant agreement. As of December 31, 2022, Wisconsin maintains approximately $30,090,000 of cumulative Program Income in cash and cash equivalents and investments on the consolidated statements of financial position that is restricted, as described above.
Title: NOTE C - AUDITS PERFORMED BY OTHER ORGANIZATIONS
Accounting Policies: All federal grant activities of Versiti, Inc. (Versiti) are included in the scope of the Uniform Grant Guidance. The Single Audit was performed in accordance with the provisions of the Uniform Grant Guidance. The Department of Health and Human Services (HHS) has been designated as Versiti's oversight agency. With the exception of funds received under the Provider Relief Fund, the accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. Grant revenue is recorded for financial reporting purposes when Versiti has met the qualifications for the respective grants. During 2021 and 2022, Versiti received HHS awards related to the Provider Relief Fund (PRF) program. HHS has indicated the amounts on the schedule of federal expenditures 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 in to the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e. after the end of the Period of Availability). The schedule of federal expenditures includes $0 received from HHS between January 1, 2021 to June 30, 2021. In accordance with guidance from HHS, no amounts are presented as Period 3. The schedule of federal expenditures also includes $165,761 received from HHS between July 1, 2021 to December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 4. Such amounts were recognized as grant revenue in Versiti's consolidated financial statements during the years ended December 31, 2022 and 2021.
De Minimis Rate Used: N
Rate Explanation: Versiti utilizes approved indirect cost rates and does not elect to use the 10% de minimis cost rate as covered in 2 CFR 200.414, Indirect (F&A) costs.
There are no audits currently in process by other organizations of Versiti's federal grant programs for the year ended December 31, 2022.