Audit 355693

Accounting Policies: 1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes the federal awards expenditures of Big Bend Regional Hospital District (the “District”) under programs of the federal government for the year ended September 30, 2024. 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 (the “Uniform Guidance”). Because the SEFA presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or change in net position of the District. The District has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance when claiming indirect costs on federal grants. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting - The expenditures on the SEFA are presented using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Such expenditures are also recognized following the cost principles contained in the Uniform Guidance. Relationship to Basic Financial Statements - Expenditures of federal awards are primarily reported in the District’s basic financial statements in a special revenue fund. Relationship to Federal Financial Reports - Amounts reported in the SEFA agree with or can be reconciled to the amounts reported in the related federal financial reports in all significant respects. De Minimis Rate Used: Y Rate Explanation: The District has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance when claiming indirect costs on federal grants.