Audit 3399

Title: Provider Relief Funds Reporting Accounting Policies: A. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal awards activity of Cozad Hospital District No. 2, D/B/A Cozad Community Health System (the Health System) under programs of the federal government for the year ended April 30, 2023. The accompanying schedule presents total expenditures in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, the amounts presented in this schedule may differ from the amounts presented in, or used in, the preparation of the basic financial statements. B. Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards includes the federal activity of the Health System under programs of the federal government for the year ended April 30, 2023 and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Health System has not elected to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. C. Provider Relief Fund Reporting Provider relief funds (PRF) are to be reported during four separate time periods. Period 1 reporting encompassed all PRF received from April 10, 2020 through June 30, 2020 with a measurement date for use of funds through June 30, 2021. Period 2 reporting includes all PRF received from July 1, 2020 through December 31, 2020 with a measurement date for use of funds through December 31, 2021. Period 3 reporting includes all PRF received from January 1, 2021 through June 30, 2021 with a measurement date for use of funds through June 30, 2022. Period 4 reporting includes all PRF received from July 1, 2021 to December 31, 2021 with a measurement date for use of funds through December 31, 2022. Accordingly, the amounts included on the accompanying schedule of expenditures of federal awards are for PRF subject to Period 3 and Period 4 reporting. As previously noted, the PRF reporting timeline for Period 3 and Period 4 use of funds runs from January 1, 2021 through December 31, 2022. This has resulted in the Health System’s recognition and reporting for financial statement purposes not matching with the PRF reporting timeline. A reconciliation of total expenditures of PRF awards to amounts recognized in the Health System’s financial statements is as follows: Total PRF amounts included in the expenditures of federal awards $ 495,418 Amounts reported in the audited financial statements, in the statements of revenues, expenses and changes in net position: Grants - COVID-19 programs FY2022 $ 394,894 Grants - COVID-19 programs FY2023 100,524 $ 495,418