Audit 317281

Title: 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Center does not have a federally negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Premier Community Healthcare Group, Inc. (the “Center”) 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 Premier Community Healthcare Group, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Premier Community Healthcare Group, Inc.

Title: RECEIVABLE FROM DEPARTMENT OF HEALTH AND HUMAN SERVICES 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Center does not have a federally negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate. The Center submits requests for reimbursement to the Department of Health and Human Services on a periodic basis. At December 31, 2023, the Department of Health and Human Services owed the Center $1,392,920.

Title: SUBRECIPIENTS 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Center does not have a federally negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate. The Center did not provide federal awards to any subrecipients during the year ended December 31, 2023.