Audit 356814

Title: Mortgage Insurance – Hospitals Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Edgerton Hospital and Health Services, Inc. (Organization) under programs of the federal government for the year ended December 31, 2024. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Signidicant Accounting Policies - 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 Organization has not elected to use the 10% de minimis cost rate. No draws for indirect costs were made. The Organization’s mortgage note payable is guaranteed under the U. S. Department of Housing and Urban Development’s Section 242 Program. The program guarantees 99% of the outstanding mortgage balance. The balance included on the Schedule represents 99% of the loan balance of $18,364,430 as of January 1, 2024, which is $18,180,785. The outstanding balance at December 31, 2024 is $17,255,390.