Audit 313342

Title: Federal Emergency Management Agency Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal grant activity of MedStar Health, Inc. (MedStar or the Corporation) and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Corporation operates under predetermined fixed indirect cost rates. The indirect cost rate effective at the grant award date was effective throughout the grant period. The indirect rate for eligible nonpayroll costs during the year ended June 30, 2022 for on-site programs ranged from 0% to 59.5% for most studies and was 46% for all off-site programs. The indirect rate used for fringe benefits during the year ended June 30, 2022 was 0% to 23.05% of payroll costs. The Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for research and develop. The 10% de-minimus rate or the prevailing rate within the grant agreement is used by the Corporation for other non-research grants when allowable. The Schedule includes activity related to the department of Federal Emergency ManagementAgency Disaster Grants Public Assistance (Presidentially Declared Disasters) Assistance Listing Number 93.959. The amount listed on the Schedule represents amounts obligated in fiscal year 2022 that were expended in 2020 related to the COVID-19 Public Health Emergency. MedStar recognized $50.0M as grant revenue for the year ended June 30, 2022.