Audit 24087

Title: 3. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Accounting Policies: 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Barnes-Kasson County Hospital (the Hospital) under programs of the federal government forthe year ended June 30, 2022. The information in this schedule is presented in accordance with therequirements 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 Schedulepresents only a selected portion of the operations of the Hospital, it is not intended to and does notpresent the financial position and changes in net assets, or cash flows of the Hospital.2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting, with exception ofexpenditures associated with Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution(PRF). Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.PRF expenditures are reported based upon PRF reports required to be submitted to the HealthResources and Services Administration (HRSA) reporting portal. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 3. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance ListingNumber 93.498For the U.S. Department of Health and Human Services Health Resources and Services Administration(HHS) award related to the PRF program, HHS has indicated the amounts on the Schedule be reportedcorresponding to reporting requirements of the Health Resources and Services Administration (HRSA)PRF Reporting Portal. Payments from HHS for PRF are assigned to 'Payment Received Periods' (each, aPeriod) based upon the date each payment from the PRF was received. Each Period has a specifiedPeriod of Availability and timing of reporting requirements. Entities report into the HRSA PRF ReportingPortal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability).The Schedule includes $186,403 of funding (includes $318 of interest earned) from the HHS betweenJuly 1, 2020, through June 30, 2021. In accordance with guidance from the HHS, these amounts arepresented on the Schedule as Period 2 and Period 3. Such amounts were recognized as a component offederal and state awards revenue in the Hospitalss financial statements in the amounts of $186,403 forthe year ended June 30, 2021.The PRF program amounts presented in the Schedule are associated with the Hospitals tax identificationnumber, which is 24-0798681.