Audit 354677

Title: Donated Personal Protective Equipment (Unaudited) Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2024.

Title: Reconciliation of the Schedule of Expenditures of Federal Awards to the Financial Statements Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of federal grant revenues reported in SCHC’s financial statements to federal expenditures reported in the SEFA: Federal grant revenue, as reported in the statements of activities 1,585,668$ Less: Other revenue reported as federal grant revenue in the financial statements (3,260) Federal share of expenditures as reported in the SEFA 1,582,408$