Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID‐19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Whidbey Island Public Hospital District dba WhidbeyHealth (the District) under programs of the federal government for the year ended December 31, 2021. The information 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). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID‐19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID‐19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: NOTE 3 - INDIRECT COST RATE
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID‐19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Title: NOTE 4 - PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN FUNDS
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID‐19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The District received $4,816,452 and $7,561,714 from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the years ended December 31, 2021 and 2020, respectively. The District incurred eligible expenditures (including lost revenue), and therefore, recognized revenues totaling $4,816,452 for the year ended December 31, 2021 on the financial statements. In accordance with the 2021 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 1, defined as payments received between April 10, 2020 and June 30, 2020 totaling $7,561,714, plus interest earned of $‐0‐, as required under the PRF program.
The total amount of PRF program expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus and the calculation of lost revenue. Actual amounts could differ from those estimates.