Audit 294596

Title: BASIS OF PRESENTATION Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: SADLER HEALTH CENTER IS CURRENTLY USING AN INTERNALLY DEVELOPED METHOD TO ALLOCATE COSTS. The schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Sadler Health Center Corporation under programs of the federal government for the year ended June 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). Because the Schedule presents only a selected portion of the operations of Sadler Health Center Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sadler Health Center Corporation. Pass-through entity identifying numbers are presented where available.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: ACCRUAL BASIS OF ACCOUNTING De Minimis Rate Used: N Rate Explanation: SADLER HEALTH CENTER IS CURRENTLY USING AN INTERNALLY DEVELOPED METHOD TO ALLOCATE COSTS. 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. Sadler Health Center is currently using an internally developed method to allocate indirect costs as allowed under the Uniform Guidance and does not use the 10% de Minimis indirect cost rate. Sadler Health Center Corporation is currently using an internally developed method to allocate indirect costs as allowed under the Uniform Guidance and does not use the 10% de minimis indirect cost rate.