Audit 323343

Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards (collectively, the “Schedules”) include the federal and New Jersey state grant activity of Christian Health Care Center (dba Christian Health) and Affiliates (collectively, the Company) for the year ended December 31, 2023 and are presented on the accrual basis of accounting. The information in the Schedules is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and New Jersey OMB Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular Letter 15-08-OMB). In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 3 below). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of the Company. For purposes of the Schedules, federal and state awards include assistance provided by a federal or state agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans and loan guarantees, or other non-cash assistance. Federally funded amounts that are passed through state agencies are included on the Schedule of Expenditures of Federal Awards and are excluded from the Schedule of Expenditures of State Awards. Note 2. Summary of Significant Accounting Policies The Company has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 3. Federal Emergency Management Agency – Disaster Grants – Public Assistance (Presidentially Declared Disasters) The Company incurred eligible disaster expenditures related to the COVID-19 pandemic under the Federal Emergency Management Agency (FEMA) Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (Federal Assistance Listing No. 97.036). In 2023, FEMA approved and reimbursed the Company for $1.4 million of eligible expenditures that were incurred in prior and current fiscal years. This amount is included in the accompanying Schedule of Expenditures of Federal Awards for the year ended December 31, 2023 in accordance with the guidance specific to Assistance Listing No. 97.036. Note 4. Subrecipients There were no subrecipients during 2023. De Minimis Rate Used: Y Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.