Audit 298910

Title: Basis of Presentation Accounting Policies: 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all federal grant activity of The Wallace Medical Concern (Wallace) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the Unites States of America. The information in the SEFA 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 SEFA presents only a selected portion of the operations of Wallace, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Wallace. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Pass-through identifying numbers are presented when available. 2. Expenditures Expenditures reported on the SEFA are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the SEFA for the COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution (Assistance Listing Number 93.498) are based incurred costs during the period five Provider Relief Fund report and report submitted to the Health Resources and Service Administration (HRSA) reporting portal. De Minimis Rate Used: N Rate Explanation: Wallace has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all federal grant activity of The Wallace Medical Concern (Wallace) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the Unites States of America. The information in the SEFA 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 SEFA presents only a selected portion of the operations of Wallace, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Wallace. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Pass-through identifying numbers are presented when available.

Title: Expenditures Accounting Policies: 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes all federal grant activity of The Wallace Medical Concern (Wallace) and is presented using the accrual basis of accounting in accordance with accounting principles generally accepted in the Unites States of America. The information in the SEFA 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 SEFA presents only a selected portion of the operations of Wallace, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Wallace. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Pass-through identifying numbers are presented when available. 2. Expenditures Expenditures reported on the SEFA are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the SEFA for the COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution (Assistance Listing Number 93.498) are based incurred costs during the period five Provider Relief Fund report and report submitted to the Health Resources and Service Administration (HRSA) reporting portal. De Minimis Rate Used: N Rate Explanation: Wallace has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the SEFA are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the SEFA for the COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution (Assistance Listing Number 93.498) are based incurred costs during the period five Provider Relief Fund report and report submitted to the Health Resources and Service Administration (HRSA) reporting portal. Wallace has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.