Notes to SEFA
On January 1, 2023, Butler Health System, Inc. and subsidiaries (collectively, Butler) and Excela Health and subsidiaries (collectively, Excela) entered into an affiliation agreement to create a new Parent corporation named Independence Health System (the Organization), which has governance authorty over both Butler and Excela. The affiliation was initiated to help the combined organizations reach the requisite scale to accelerate and elevate its relevancy and essentiality in the region's highly competitive healthcare marketplace. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2024. Prior to June 30, 2024, Butler and Excela each had stand-alone single audits and were individual receipients of federal programs. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.