Audit 3392

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Johnston Health Services Corporation d/b/a UNC Health Johnston (the System), under programs of the federal government for the year ended June 30, 2023. The Schedule of the System includes the following legal entities: Johnston Health Services Corporation 46-3176429 Johnston Specialty Physician Services, Inc. 26-1425192 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System. 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program)amount on the Schedule includes $5,749,356 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule inaccordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: None used. The System did not provide federal awards to subrecipients for the year ended June 30, 2023.

Title: Donated Personal Protective Equipment (Unaudited) Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Johnston Health Services Corporation d/b/a UNC Health Johnston (the System), under programs of the federal government for the year ended June 30, 2023. The Schedule of the System includes the following legal entities: Johnston Health Services Corporation 46-3176429 Johnston Specialty Physician Services, Inc. 26-1425192 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System. 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Program)amount on the Schedule includes $5,749,356 for reimbursement of expenses that was recognized in CARES Act stimulus in the Combined Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule inaccordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: N Rate Explanation: None used. During the year ended June 30, 2023, the System did not receive any donated personal protective equipment.