Title: Basis of Presentation
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) summarizes the federal and state awards expended by Hospital Sisters Health System and Subsidiaries (HSHS) for the year ended June 30, 2023. For purposes of the Schedule, federal and state awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between HSHS and agencies and departments of the federal government and the State of Wisconsin. For the year ended June 30, 2023, HSHS had no expenditures in the form of noncash assistance, and no federally provided insurance in effect. Expenditures for federal and state award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: Both
Rate Explanation: Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federal or state sponsored program. The salary of a social worker or a sponsored program and the materials consumed by the program are examples of direct costs. Unlike direct costs, indirect costs cannot easily be identified with an individual federal or state sponsored program. Indirect costs consist of expenses incurred for such items as administration, plant maintenance, and building and equipment depreciation. The federal or state agencies use an indirect cost rate to charge indirect costs to individual federal or state programs. The rate is the result of a number of cost allocation procedures that HSHS uses to allocate its indirect costs to both sponsored and nonsponsored activities. The costs allocated to sponsored programs are divided by the direct costs of sponsored programs to arrive at a rate. the U.S. Department of Public Health and Human Services (DHHS) must approve the rate before HSHS can use it to charge indirect costs to federal or state sponsored programs. HSHS has elected to use the 10% de minimis indriect cost rate allowed under Uniform Guidance, except for St. Vincent Hospital, which utilizes a separate negotiated rate.
The accompanying schedule of expenditures of federal and state awards (the Schedule) summarizes the federal and state awards expended by Hospital Sisters Health System and Subsidiaries (HSHS) for the year ended June 30, 2023. For purposes of the Schedule, federal and state awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between HSHS and agencies and departments of the federal government and the State of Wisconsin. For the year ended June 30, 2023, HSHS had no expenditures in the form of noncash assistance, and no federally provided insurance in effect. Expenditures for federal and state award programs are recognized on the accrual basis of accounting. Awards have been classified into major and nonmajor programs in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidance. HSHS’ major federal programs consist of the following: COVID‑19 – Provider Relief Funds – The Provider Relief Fund (PRF) program is administered by the Health Resources and Services Administration to support eligible providers during the COVID 19 pandemic and was approved for funding originally under the Coronavirus Aid, Relief and Economic Securities Act. Funds were provided to eligible providers to support healthcare related expenses or lost revenues attributable to the Coronavirus without application but rather with terms and conditions. These terms and conditions required acceptance through an online portal or the funds were to be returned. HSHS accepted the terms and conditions. The accompanying schedule of expenditures of Federal awards includes PRF for Periods 4 and 5 defined as payments received between July 1, 2022 to June 30, 2023. Tax Identification Numbers (TIN) for HSHS include: HSHS is 37‑1058692, SJS is 37‑0661238, SEO is 37‑0663567, SMD is 37‑0661244, SAE is 37‑0661233, SJB is 37‑1208459, SFL is 37‑0661236, SJH is 37‑0663568, HFG is 37‑0792770, GSS is 37‑0512290, SVGB is 39‑0817529, SHEC is 39‑0807060, SMGB is 39‑0818682, SNS is 39‑0808480, SJCF is 39‑0810545, SCO is 39‑0848401, HMI is 26‑3956318, and PCC is 37‑1071858. Research and Development Cluster – Includes awards from the U.S. Department of Health and Human Services for research and development of cancer treatment primarily under cancer treatment research and cancer control. HSHS’ major state program consists of the following: Opioid treatment program – Includes awards to provide intake services, detox, residential care, initial evaluations, IOP, individual appointments, aftercare program, urine drug testing, case management, and discharge planning.
Title: Federal and State Award Expenditures
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) summarizes the federal and state awards expended by Hospital Sisters Health System and Subsidiaries (HSHS) for the year ended June 30, 2023. For purposes of the Schedule, federal and state awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between HSHS and agencies and departments of the federal government and the State of Wisconsin. For the year ended June 30, 2023, HSHS had no expenditures in the form of noncash assistance, and no federally provided insurance in effect. Expenditures for federal and state award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: Both
Rate Explanation: Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federal or state sponsored program. The salary of a social worker or a sponsored program and the materials consumed by the program are examples of direct costs. Unlike direct costs, indirect costs cannot easily be identified with an individual federal or state sponsored program. Indirect costs consist of expenses incurred for such items as administration, plant maintenance, and building and equipment depreciation. The federal or state agencies use an indirect cost rate to charge indirect costs to individual federal or state programs. The rate is the result of a number of cost allocation procedures that HSHS uses to allocate its indirect costs to both sponsored and nonsponsored activities. The costs allocated to sponsored programs are divided by the direct costs of sponsored programs to arrive at a rate. the U.S. Department of Public Health and Human Services (DHHS) must approve the rate before HSHS can use it to charge indirect costs to federal or state sponsored programs. HSHS has elected to use the 10% de minimis indriect cost rate allowed under Uniform Guidance, except for St. Vincent Hospital, which utilizes a separate negotiated rate.
Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federal or state sponsored program. The salary of a social worker or a sponsored program and the materials consumed by the program are examples of direct costs. Unlike direct costs, indirect costs cannot easily be identified with an individual federal or state sponsored program. Indirect costs are the costs of services and resources that benefit many sponsored programs, as well as nonsponsored projects and activities. Indirect costs consist of expenses incurred for such items as administration, plant maintenance, and building and equipment depreciation. The federal or state agencies use an indirect cost rate to charge indirect costs to individual federal or state programs. The rate is the result of a number of cost allocation procedures that HSHS uses to allocate its indirect costs to both sponsored and nonsponsored activities. The costs allocated to sponsored programs are divided by the direct costs of sponsored programs to arrive at a rate. The U.S. Department of Health and Human Services (DHHS) must approve the rate before HSHS can use it to charge indirect costs to federal or state sponsored programs. HSHS has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance, except for St. Vincent Hospital, which utilizes a separate negotiated rate.
Title: Federal Student Loan Programs
Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) summarizes the federal and state awards expended by Hospital Sisters Health System and Subsidiaries (HSHS) for the year ended June 30, 2023. For purposes of the Schedule, federal and state awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between HSHS and agencies and departments of the federal government and the State of Wisconsin. For the year ended June 30, 2023, HSHS had no expenditures in the form of noncash assistance, and no federally provided insurance in effect. Expenditures for federal and state award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: Both
Rate Explanation: Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federal or state sponsored program. The salary of a social worker or a sponsored program and the materials consumed by the program are examples of direct costs. Unlike direct costs, indirect costs cannot easily be identified with an individual federal or state sponsored program. Indirect costs consist of expenses incurred for such items as administration, plant maintenance, and building and equipment depreciation. The federal or state agencies use an indirect cost rate to charge indirect costs to individual federal or state programs. The rate is the result of a number of cost allocation procedures that HSHS uses to allocate its indirect costs to both sponsored and nonsponsored activities. The costs allocated to sponsored programs are divided by the direct costs of sponsored programs to arrive at a rate. the U.S. Department of Public Health and Human Services (DHHS) must approve the rate before HSHS can use it to charge indirect costs to federal or state sponsored programs. HSHS has elected to use the 10% de minimis indriect cost rate allowed under Uniform Guidance, except for St. Vincent Hospital, which utilizes a separate negotiated rate.
HSHS is responsible only for the performance of certain administrative duties with respect to the Federal Family Education Loan programs, and accordingly, these loans are not included in its consolidated financial statements, and it is not practical to determine the balance of loans outstanding to students and former students of HSHS under these programs at June 30, 2023.