Title: Basis of Presentation
Accounting Policies: Prepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards as well as the accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes all federal grants
to WellSpan Health, the Company, that had expenditure activity during fiscal year 2023. The Schedule has been prepared
in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform
Guidance), and on the accrual basis of accounting. In accordance with applicable requirements, certain
programs may be presented in a fiscal period based on the program-specific guidance (see Note 2).
Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the
preparation of, the consolidated financial statements of the Company. For purposes of the Schedule,
federal awards include any assistance provided by a federal agency either directly or indirectly in the form
of grants, contracts, cooperative agreements, direct appropriations, loan and loan guarantees, and other
noncash assistance.
Direct and indirect costs are charged to awards in accordance with cost principles contained in the United
States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75
Appendix IX for awards subject to the Uniform Guidance. Under these cost principles, certain types of
expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a
10% de minimis indirect cost rate election. The Company has elected to use the 10% de minimis indirect
cost rate as covered in Uniform Guidance section 2 CFR 200.414 Indirect (F&A) costs.
Title: Federal Emergency Management Agency: Disaster Grants
Accounting Policies: Prepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards as well as the accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Company received a disaster grant awards in 2024 related to COVID-19. Expenditures included in
the Schedule for Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036) of
$1.2 million relate to the recovery of expenses incurred by the Company prior to the year ended
June 30,2024.
Title: Pennsylvania Department of Health
Accounting Policies: Prepared in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards as well as the accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The following table details grant revenue recognized, grant receipts, and receivables for grants received
from the Department of Health and Human Services and passed through the Pennsylvania Department of
Health for the year ended June 30, 2024:
Assistance Listing Number 93.994: Contract number 4100088125:
Accrued federal revenue at July 1, 2023 $ 20,308
Less total federal funding received during the year ended June 30, 2024 (68,345)
Plus federal revenue recognized during the year ended June 30, 2024 78,334
Accrued federal revenue at June 30, 2024 $ 30,297