Audit 307599

Title: 1.         Basis of Presentation Accounting Policies: Expenditures are reported in the SEFA on the accrual basis of accounting in accordance with the HRSA terms and conditions for PRF funding. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Carteret County General Hospital (Hospital) under the programs of the federal government for the year ended September 30, 2023. The information in this SEFA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly and indirectly from federal agencies are included in this Schedule. Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Hospital. The accompanying Schedule includes those qualifying expenditures that were reported in the HRSA PRF portal for Period 4. Of that amount, approximately $581,000 in PRF payments and $4,270,000 in ARP payments were recognized by Carteret County General Hospital in its statement of operations and changes in net assets as CARES Act deferred revenue and other during the fiscal year ended September 30, 2023.

Title: 2.         Basis of Accounting Accounting Policies: Expenditures are reported in the SEFA on the accrual basis of accounting in accordance with the HRSA terms and conditions for PRF funding. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A Expenditures are reported in the Schedule 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 for PRF are based upon the PRF report for the year ended September 30, 2023 in accordance with the terms and conditions set by HRSA.

Title: 3.         Indirect Cost Rate Accounting Policies: Expenditures are reported in the SEFA on the accrual basis of accounting in accordance with the HRSA terms and conditions for PRF funding. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A Carteret County General Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.