Audit 360821

Title: Note 1 Basic of Presentation 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 Guidence, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Not Applicable The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lawrence General Hospital and Affiliates under programs of the federal government for the year ended September 30, 2024. The information in this Schedule 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 Lawrence General Hospital and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Lawrence General Hospital and Affiliates.

Title: Note 2 Summary of 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 Guidence, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Not Applicable 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.

Title: Note 3 Indirect Cost Rate 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 Guidence, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Not Applicable Lawrence General Hospital and Affiliates has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 4 Relationship to Basic Consolidated Financial Statements 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 Guidence, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Not Applicable Expenditures of federal awards are reported on the consolidated statement of operations as operating expenses. In certain programs, the expenditures reported in the consolidated financial statements differ from the expenditures reported in the schedule of expenditures of federal awards. The Schedule includes expenses in the amount of $1,155,406 within Federal Assistance Listing Number (“ALN”) 97.036, which were incurred eligible expenses in a prior fiscal year and approved by Massachusetts Emergency Management Agency in fiscal year 2024.

Title: Note 5 Subsequent Events 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 Guidence, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Not Applicable Lawrence General Hospital and Affiliates has evaluated subsequent events occurring after the consolidated statement of financial position date of September 30, 2024, through the date of February 27, 2025, except for our report on the supplemental schedule of federal expenditures of federal awards, for which the subsequent events date is June 30, 2025, which is the date of these consolidated financial statements were available to be issued. No events arose during that period that would require adjustment or additional disclosure.