Audit 305121

Title: NOTE 1 – 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 System has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Carson Tahoe Health System and Subsidiaries (the “System”), under programs of the federal government for the year ended December 31, 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”). Because the Schedule presents only a selected portion of the operations of the System, it is not intended to, and does not present the financial position, changes in net assets, or cash flows of the System. The Schedule includes expenditures of federal awards from Carson Tahoe Regional Healthcare (Taxpayer Identification Number 88-0502320), Carson Tahoe Physician Clinics dba Carson Tahoe Medical Group (Taxpayer Identification Number 02-0566741), and Carson Tahoe Continuing Care Hospital (Taxpayer Identification Number 26-1635811). In accordance with guidance from the U.S. Department of Health and Human Services (“DHHS”), the System included the Reporting Period 5 and Period 6 expenditures for Provider Relief Fund Assistance Listing No. 93.498 of $7,037,014 in the Schedule for the year ended December 31, 2023, to align with DHHS reporting guidelines. In accordance with U.S. GAAP, the total amount of $7,037,014 of Provider Relief Fund assistance received by the System was recognized as revenue through the year ended December 31, 2022, and is included in the beginning net assets as of and for the year ended December 31, 2023.

Title: NOTE 2 – 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under 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.

Title: NOTE 3 – 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.

Title: NOTE 4 – SUBRECIPIENT AWARDS 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 System has elected not to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The System did not provide any federal awards to subrecipients during the year ended December 31, 2023.