Audit 290241

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. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Jackson County Schneck Memorial Medical Center (d/b/a Schneck Medical Center) and Affiliated Organizations (the “Medical Center”) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with 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 Medical Center, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Medical Center.

Title: Provider Relief Funds 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. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule for the Provider Relief Fund (“PRF”) under Assistance Listing Number 93.498 are based on the Medical Center’s June 30, 2022 and December 31, 2022 reports to the PRF Reporting Portal. Under terms and conditions of the Provider Relief Funds established by the Coronavirus Aids, Relief, and Economic Security (“CARES”) Act, the Medical Center is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (“HHS”). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue within certain reporting timetables based on the date that funds were received. The 2022 Schedule includes PRF of $7,762,285 which was received by the Medical Center prior to December 31, 2021, the date designated by HHS for its fourth PRF reporting period. For the years ended December 30, 2022 and 2021, the Hospital recognized $224,282 and $15,822,122, respectively, as non-operating revenue in the statements of operations and changes in net position as the terms and conditions of the PRF grant were satisfied by the Hospital. Single AdPRF revenues in the 2022 statement of operations and changes in net position that were received after December 31, 2021 are subject to the fifth reporting period and are not required to be included in the 2022 Schedule.

Title: Donated Personal Protective Equipment 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. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During 2022, the Medical Center did not receive material donated personal protective equipment from federal sources.