Audit 340878

Title: (4) Disaster Grants – Public Assistance – Assistance listing number 97.036 (FEMA) Accounting Policies: (1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes all federal award activity of PeaceHealth Networks (the Corporation) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 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 the Corporation, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Corporation. (2) Summary of Significant 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Nonfederal entities must record expenditures on the Schedule when FEMA has approved the nonfederal entity’s project worksheet, and the nonfederal entity has incurred the eligible expenditures. The amount shown on the Schedule for the year ended June 30, 2024 includes $16,344,965 in expenditures that were incurred in prior years.