Audit 315165

Title: General Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized, as applicable, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Corporation elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Charles Health System, Inc. (the Corporation) 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 (2 CFR 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 Corporation, it is not intended to and does not present the balance sheet, changes in net assets, or cash flows of the Corporation. Financial assistance received directly from federal agencies as well as financial assistance passed through from other agencies are included in the accompanying schedule. The Corporation’s financial reporting entity is described in note 1 to the Corporation’s consolidated financial statements.

Title: Basis of Accounting Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized, as applicable, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Corporation elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized, as applicable, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available.

Title: Indirect Cost Rate Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized, as applicable, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Corporation elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. St. Charles elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.