Audit 353208

Title: Note 1: BASIS OF PRESENTATION Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported in 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. Loan / Loan Guarantee Outstanding Balances The balance of loans outstanding at September 30, 2024 for the Community Facilities Loans and Grants Cluster (Federal Assistance Listing Number 10.766) was $16,336,026. The outstanding balance of loans at the beginning of the year is included in the federal expenditures presented in the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2024, the Medical Center did not elect to use this rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Southwest Mississippi Regional Medical Center (the “Medical Center”) under programs of the federal government for the year ended September 30, 2024. The information in the 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 Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Medical Center, it is not intended to and does not present the net position, changes in net position, or cash flows of the Medical Center.