Audit 3231

Title: Note 3 - COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Moses Lake Community Health Center (the Organization) under programs of the federal government for the year ended March 31, 2023. The information in this schedule is presented in accordance with the requirements of 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Note 2 - Summary of Significant 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 represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization was the recipient of funding under assistance listing number 93.498, Provider Relief Fund (PRF), and as required based on guidance in the 2022 OMB Compliance Supplement, the Schedule includes all period 4 funds received between July 1, 2021 to December 31, 2021 and expended by December 31, 2022 as reported to the Department of Health and Human Services via the PRF Reporting Portal. During the year ended March 31, 2022, $356,249 of the period 4 PRF funds received was recognized as support due to COVID-19 pandemic in the Organization’s consolidated financial statements for the year then ended. During the year ended March 31, 2023, the remaining $192,372 of period 4 PRF funds was recognized as support due to COVID-19 pandemic in the Organization’s financial statements for the year then ended.