Title: 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.
Expenditures and lost revenues for the Provider Relief Fund (“PRF”), are based upon the PRF reports for the year ended December 31, 2023.
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 Augusta Health Care, Inc. and Affiliates (the “Company”) 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
Title: 4. Contingencies
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.
Expenditures and lost revenues for the Provider Relief Fund (“PRF”), are based upon the PRF reports for the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The grant programs are subject to financial and compliance audits by the grantors or their representatives. Such audits could lead to requests for reimbursement to the grantor agencies for expenditures disallowed under terms of the grants. Management believes disallowances, if any, will not be material.
Title: 5. Categorization of Expenditures and Other Matters
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.
Expenditures and lost revenues for the Provider Relief Fund (“PRF”), are based upon the PRF reports for the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The categorization of expenditures by program included in the Schedule is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing, which is issued typically in June and December of each year. The Schedule for the year ended December 31, 2023 reflects Assistance Listing changes through April 2023.
Title: 6. 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.
Expenditures and lost revenues for the Provider Relief Fund (“PRF”), are based upon the PRF reports for the year ended December 31, 2023.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As outlined in the May 2023 OMB Compliance Supplement, the amounts reported in the accompanying Schedule related to the PRF Assistance Listing No. 93.498, are reported based upon the PRF reporting portal submission guidelines established by the Health Resource and Service Administration (“HRSA”). Seven separate reporting periods were established by HRSA based on the dates of receipt of PRF payments. Each reporting period has a specific period of availability which begins on January 1, 2020 and extends through specified deadlines, as indicated below:
The accompanying Schedule includes those qualifying expenditures and lost revenues that were reported in the HRSA PRF portal for Period 5. Of that amount, approximately $6,500,000 in PRF payments was recognized by the Company in their consolidated statements of operations as other operating revenue during the year ended December 31, 2022.