Audit 303572

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. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program) The PRF Program amount on the Schedule includes $1,225,701 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: The Authority 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 (the Schedule) includes the federal award activity of Onslow County Hospital Authority (the Authority), a component unit of Onslow County, under programs of the federal government for the year ended September 30, 2023. The Schedule of the Authority includes the following legal entities: Entity Tax Identification Number (TIN) Onslow County Hospital Authority N/A Onslow Memorial Hospital, Inc. 56-2014989 Onslow Ambulatory Services, Inc. 56-1880357 Onslow Memorial Hospital Foundation 58-1943240 Onslow Radiation Oncology 26-1694368 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Title: Summary of Significant Accounting Policies 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. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program) The PRF Program amount on the Schedule includes $1,225,701 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program) The PRF Program amount on the Schedule includes $1,225,701 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program.

Title: Indirect Cost Rate 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. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program) The PRF Program amount on the Schedule includes $1,225,701 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has not elected to use the 10­percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Donated Personal Protective Equipment (Unaudited) 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. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program) The PRF Program amount on the Schedule includes $1,225,701 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended September 30, 2023, the Authority did not receive any donated personal protective equipment.