Audit 289874

Title: Note 4 ‐ Provider Relief Funds Accounting Policies: Note 1 ‐ Basis of Presentation: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Agency under programs of the federal government for the year ended June 30, 2023. 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 Agency, it is not intended to and does not present the financial position, changes in net position or cash flows of the Agency. Note 2 ‐ Summary of Significant 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. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10‐percent de minimis indirect cost rate allowed under the Uniform Guidance. The Agency received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (Federal Financial Assistance Listing 93.498) during the year ended June 30, 2022. The Agency incurred eligible expenditures and lost revenue and, therefore, recognized revenue totaling $316,874 for the year ended June 30, 2022 in the financial statements. In accordance with the compliance supplement addendum, the PRF expenditures recognized on the schedule are based on reports submitted to HHS for funding with periods of availability ending from July 1, 2022 to June 30, 2023, as required under the PRF program. The amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and the calculation of lost revenue. Actual results could differ from those estimates.