Audit 355418

Title: Note 1 - Method of Accounting 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. The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Following changes to Uniform Guidance effective October 1, 2024, the District began using a 15-percent de minimis indirect cost rate. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Following changes to Uniform Guidance effective October 1, 2024, the District began using a 15-percent de minimis indirect cost rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Skagit County Public Hospital District No. 304 d/b/a United General District 304 (the District) under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with requirements of the 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. 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. The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Following changes to Uniform Guidance effective October 1, 2024, the District began using a 15-percent de minimis indirect cost rate. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Following changes to Uniform Guidance effective October 1, 2024, the District began using a 15-percent de minimis indirect cost rate 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. The District has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Following changes to Uniform Guidance effective October 1, 2024, the District began using a 15-percent de minimis indirect cost rate.