Audit 2865

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable, De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Frederiksted Health Care, Inc. (the "Center") under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements 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 Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center.

Title: Donated and nonmonetary assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable, De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Donated and nonmonetary assistance is reported in the Schedule at the fair value of the vaccinations received. The total federal share of vaccinations distributed by the Center amounted to $270,058 and is included in the statement of activities and change in net assets. This amount is included in the Schedule.

Title: COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution - Assistance Listing Number 93.498 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Center has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable, De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ("PRF") program, HHS has indicated the amounts on the Schedule 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 into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $232,309 received from HHS between July 1, 2021 through December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 4. Such amounts were recognized as DHHS revenue in the finanical statements in the year ended December 31, 2021.