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 auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Mosaic Health System and related organizations (Mosaic) under programs of the federal
government for the year ended June 30, 2023. 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 (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.
For purposes of the Schedule, federal awards include all federal assistance entered into directly between
Mosaic and the federal government and sub-awards from nonfederal organizations made under federally
sponsored agreements. The Schedule does not include payments received under Medicare and Medicaid
reimbursement programs. Because the Schedule presents only a selected portion of the activities of
Mosaic, it is not intended to, and does not, present the net position, changes in net position or cash flows
of Mosaic.
Title: Subrecipients
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 auditee did not use the de minimis cost rate.
None of the federal expenditures presented in the Schedule were provided to subrecipients during the
year ended June 30, 2023.
Title: Noncash Assistance, Insurance, Loans and Loan Guarantees Outstanding
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 auditee did not use the de minimis cost rate.
Mosaic did not receive any noncash assistance during the year ended June 30, 2023. There were no
federal awards expended for insurance or any loans or loan guarantees outstanding as of June 30, 2023.
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 auditee did not use the de minimis cost rate.
Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP) Rural
Distribution program (PRF) (ALN 93.498), Mosaic 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 in certain reporting periods
based on when the funds were received.
The June 30, 2023 Schedule includes PRF expenditures of approximately $7,138,000. Federal PRF
distributions of approximately $7,138,000 were received by Mosaic from July 1, 2021 to June 30, 2022.
Mosaic recognized all of this amount received as revenue in its June 30, 2022 financial statements, as
the terms and conditions of the PRF grant were satisfied. HHS requires PRF amounts received from
July 1, 2021 to June 30, 2022 to be reported on the June 30, 2023 Schedule rather than the June 30,
2022 Schedule.