Audit 27368

Title: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PROVIDER RELIEF FUNDS Accounting Policies: (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accompanying schedule of expenditures of federal awards includes the federal grant/contract activity ofVolunteer Behavioral Health Care System (Volunteer) as of and for the year ended June 30, 2022, and ispresented on the accrual basis of accounting. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements. Because the Schedule presents only a selected portion of the operations of Volunteer, it is notintended to and does not present the financial position, changes in net assets, or cash flows of Volunteer.Volunteer receives grant/contracts direct from federal agencies and is a sub-recipient of federalgrant/contract funds passed-through agencies of the State of Tennessee. The schedule of expenditures offederal funds includes all direct federal grant/contract expenses and the portion of federal fundsearned/expensed on grants/contracts passed-through agencies of the State of Tennessee."Cash Accrued July 1, 2021" represents federal grant/contract funds earned during the prior period, but notreceived before the end of that period."Receipts" represent the actual cash received from the grantor agency during the current period."Disbursements" represents current period grant/contract revenues earned, recorded on the accrual basis ofaccounting. Revenues from expensed based grants/contracts are recognized as allowable costs are incurred,following applicable cost principles. Revenues from service based grants/contracts are recognized as theservice is provided."Cash Accrued June 30, 2022" represents the revenues earned from the grant/contract, but which were notreceived from the grantor agency during the current period.Indirect cost is charged to the grants/contracts based upon amounts approved within each grant/contractbudget. The indirect cost rates range from 0% to 25.66%. The Organization has elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount reported on the schedule of expenditures of federal awards for the year ended June 30, 2022, from the U.S. Department of Health and Human Services for Provider Relief Funds were received during the period July 1, 2020 to December 31, 2020. The Organization received an additional $1,396,349 from the U.S. Department of Health and Human Services for Provider Relief Funds during the period July 1, 2021 to December 31, 2021. These funds will not be reported on the schedule of expenditures of federal awards until the year ended June 30, 2023.