Audit 33567

Accounting Policies: 1.GENERAL INFORMATIONThe accompanying schedules of expenditures of federal awards and state financial assistance present the activities of all federal awards and state financial assistance programs of Central Jersey Medical Center, Inc. (the Organization). All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies are included on the schedules of expenditures of federal awards and state financial assistance (the Schedules).2.BASIS OF ACCOUNTINGThe amounts reported as expenditures in the accompanying Schedules generally were obtained from the appropriate federal or state reports for the applicable program and period. These reports are reconciled to the general ledger, which is the source of the financial statements.3.BASIS OF PRESENTATIONThe accompanying Schedules include the federal and state award activity of Central Jersey Medical Center, Inc. under programs of the federal and state government for the year ended December 31, 2022. The information in the Schedules 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) and the State of New Jersey Treasury Circular 15-08. Because the Schedules present only a selected portion of the operations of Central Jersey Medical Center, Inc., they are not intended and do not present the financial position, changes in net assets, or cash flows of Central Jersey Medical Center, Inc. 4.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedules of expenditures of federal awards and state financial assistance due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included as federal and state awards.5.PREVENTIVE AND PRIMARY CARE PROGRAMThe Organization contracted with the State of New Jersey Department of Health and Senior Services to provide health and medical services to the uninsured population under the Preventive and Primary Care Program. This (Letter of Agreement) pays the Organization a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2022, the amount expended as revenue under this Letter of Agreement was $1,047,871.6.INDIRECT COST RATEThe Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organizations contract with the Department of Health and Human Service and the State of New Jersey Department of Health and Senior Services does not have a provision for an indirect cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.