Audit 337328

Title: NOTE A - 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. Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (schedule) includes the federal award activity of Henderson County Health Care Corporation - Two under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal RegulaÍions 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 Henderson County Health Care Corporation - Two, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Henderson County Health Care Corporation - Two.

Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM 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. Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Henderson County Health Care Corporation - Two has elected not to use the l0 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Henderson County Health Care Corporation - Two has received a U.S. Department of Housing and Urban Development-insured loan under Section 223(f)/207 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Henderson County Health Care Corporation - Two received no additional loans during the year. The balance of the loan outstanding at June 30,2024 consists of: Assistance Listing Outstanding Balance Number Prosram Name at June 3012024 1 4.1 55 HUD-insured mortgage $ 4,059,171