Title: Note 1. 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. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported in the Schedule for CFDA 97.036, Disaster Grants – Public Assistance, include $714,253 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. Expenditures reported in the Schedule for CFDA 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, include $2,000,000 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. The System did not pass through any federal award amounts to subrecipients during 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the System under programs of the federal government for the year ended September 30, 2023. The information in the 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. 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.
Title: Note 3. Indirect Cost Rate
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. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported in the Schedule for CFDA 97.036, Disaster Grants – Public Assistance, include $714,253 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. Expenditures reported in the Schedule for CFDA 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, include $2,000,000 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. The System did not pass through any federal award amounts to subrecipients during 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The System has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Provider Relief Fund
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. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported in the Schedule for CFDA 97.036, Disaster Grants – Public Assistance, include $714,253 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. Expenditures reported in the Schedule for CFDA 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, include $2,000,000 of expenditures incurred by the System in a prior year and awarded during the year ended September 30, 2023. The System did not pass through any federal award amounts to subrecipients during 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The System received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Assistance Listing 93.498) during the years ended September 30, 2023 and 2022. The System recognized PRF revenue of $0 and $5,734,304 for the years ended September 30, 2023 and 2022, respectively, on the consolidated financial statements. In accordance with the 2023 Compliance Supplement, $5,734,304 of funding was included in the schedule of expenditures of federal awards for the year ended September 30, 2023.