Audit 307830

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Barlow Respiratory Hospital (the Hospital) under programs of the federal government for the year ended August 31, 2023. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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 Hospital, it is not intended to and does not present the balance sheet, statement of operations, changes in net assets, or cash flows of the Hospital. The Hospital’s reporting entity is defined in Note 1 of the financial statements. All federal awards from federal agencies are included in the Schedule.

Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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. The Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 3 - Provider Relief Fund Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. In accordance with guidance from the U.S. Department of Health and Human Services (HHS), the Hospital included the Reporting Period 4 expenditures for Provider Relief Fund, Assistance Listing No. 93.498 of $2,635,429 in the Schedule for the year ended August 31, 2023, to align with HHS reporting guidelines. In accordance with accounting principles generally accepted in the United States (GAAP), the total amount of $2,635,429 of Provider Relief Fund assistance received by the Hospital was recognized as revenue during the year ended August 31, 2022, and is included in beginning net assets as of and for the year ended August 31, 2023. No funds were remaining from the Period 4 funding period.

Title: Note 4 - Subrecipient Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not provide any federal awards to subrecipients during the year ended August 31, 2023.