Audit 26890

Accounting Policies: Note 1 Purpose of the Schedule The accompanying Schedule of Expenditures of Federal Awards, State Financial Assistance and Local Awards (the Schedule) of South Broward Hospital District d/b/a Memorial Healthcare System (the System) is supplementary information and is an important part of the reporting package required by:? Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Title 45CFR Part 74, Appendix E, Principles for Determining Cost Applicable to Research and Development Under Grants and Contracts with Hospitals (Uniform Guidance).As a result, some amounts presented in the Schedule may differ from amounts presented in, or used in the presentation of the basic schedule of the System. The Schedule includes the grant activities for the System for the year ended April 30, 2022.The auditor is required to determine and provide an opinion on whether the Schedule is presented fairly, in all material respects, in relation to the schedule as a whole. Further, the information in the Schedule serves as the primary basis for the auditors major programs, which is a key component of performing a single audit. The Schedule also provides assurance to those agencies that award financial assistance, that their programs or grants are included in the audit. Note 2 Summary of Significant Accounting Policies Basis of Presentation The information in the Schedule is presented in accordance with the Uniform Guidance. The Schedule, at a minimum, entails the following:1. Listing of individual Federal, State, and Local programs by awarding agency for which the System expended funds for the year ended April 30, 20222. Total Federal, State, and Local awards expended for the year ended April 30, 20223. Catalog of Federal Domestic Assistance (CFDA) and Catalog of State FinancialAssistance (CSFA) number for each program that had expenditures for the year ended April 30, 20224. The name of the pass-through entity and the identifying number assigned by the passthrough entity for awards received as a subrecipient5. The total amount provided to subrecipients from each Federal and State program, if any6. Notes that describe the significant accounting policies used in preparing the Schedule and notes indicating the indirect cost rate applied South Broward Hospital District d/b/a Memorial Healthcare System Notes to the Schedule of Expenditures of Federal Awards, State Financial Assistance, and Local Awards For the Year Ended April 30, 202211Note 2 Summary of Significant Accounting Policies (continued)Basis of Presentation (continued)Reporting Entity The Systems reporting entity is described in Note 1 of the basic schedule. The Schedule includes all Federal and State assistance programs administered by the System during the year ended April 30, 2022, that are subject to a Uniform Guidance audit. Basis of Accounting The expenditures presented on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and following the Uniform Guidance, wherein certain types of expenditures are unallowable or have conditions or limits as far as the reimbursement. Indirect Costs The Schedule includes a portion of allocated costs from a federally approved indirect cost rate plan. The System did not elect to use the 10% de minimis cost rate. Matching Costs All expenditures are recorded based on funded amounts, while additional cost such as matching costs are not included in the Schedule. Capital Costs The System records grant funds restricted for the acquisition of capital assets as non-operating revenue in the accounting period in which they are earned and become measurable. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets or cash flows of the System. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.