Audit 300178

Title: Note 1: Basis of Presentation Accounting Policies: Note 2: Summary of Significant Accounting Policies With the exception of expenditures related to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF and ARP are not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF and ARP are based on the PRF and ARP period of availability, terms and conditions of the PRF and ARP program, and amounts reported in the PRF portal for the reporting period 4 and 5. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Medical Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of El Centro Regional Medical Center, an Enterprise Fund of the City of El Centro (the “Medical Center”). 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Medical Center.

Title: Note 4: Subrecipients Accounting Policies: Note 2: Summary of Significant Accounting Policies With the exception of expenditures related to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF and ARP are not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF and ARP are based on the PRF and ARP period of availability, terms and conditions of the PRF and ARP program, and amounts reported in the PRF portal for the reporting period 4 and 5. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Medical Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Medical Center passed no federal awards through to subrecipients.