Audit 356288

Title: Community Facilities Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Luke's Hospital (Hospital) under programs of the federal government for the year ended June 30, 2023. The information 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported on this Schedule consists of the beginning of the year outstanding loan balance of the Hospital’s USDA direct loan of $4,585,920, as well as $357,892, which is 90% of the beginning of the year outstanding balance of the Hospital’s USDA guaranteed loan. If applicable, advances made on the loans during the year are reported on the Schedule. The Hospital made no advances on the loans during the year ended June 30, 2023. The Hospital’s outstanding loan balances for the direct loan and the guaranteed loan as of June 30, 2023 are $4,410,457 and $371,149, respectively.

Title: Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Luke's Hospital (Hospital) under programs of the federal government for the year ended June 30, 2023. The information 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Hospital received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498). The PRF expenditures were recognized on the Schedule when the expenditures were included in the reporting to HHS for Period 4, defined as payments received between July 1, 2021, and December 21, 2021. As the total amount of $188,563 was included on the Period 4 report submitted to HHS, that amount is shown on the accompanying Schedule.