Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying consolidated schedule of expenditures of federal awards (SEFA) arereported on the accrual basis of accounting. Such expenditures are recognized following the cost principles containedin Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are notallowable or are limited as to reimbursement. Sarah Bush Lincoln Health System, Inc. (the System) has elected not touse the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying SEFA for 2022 includes the federal grant activity of the System and is presented on the accrualbasis of accounting. The information in the SEFA is presented in accordance with the requirements of the UniformGuidance. The basic consolidated financial statement classifications may include other financial activity for reportingpurposes. Therefore, some of the amounts presented in the SEFA may differ from amounts presented in, or used inthe preparation of, the basic consolidated financial statements.
Title: SUB-RECIPIENT PASS THROUGH
Accounting Policies: Expenditures reported on the accompanying consolidated schedule of expenditures of federal awards (SEFA) arereported on the accrual basis of accounting. Such expenditures are recognized following the cost principles containedin Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are notallowable or are limited as to reimbursement. Sarah Bush Lincoln Health System, Inc. (the System) has elected not touse the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The System did not pass-through federal awards to sub-recipients during 2022.
Title: COVID-19 FEDERAL GRANTS
Accounting Policies: Expenditures reported on the accompanying consolidated schedule of expenditures of federal awards (SEFA) arereported on the accrual basis of accounting. Such expenditures are recognized following the cost principles containedin Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are notallowable or are limited as to reimbursement. Sarah Bush Lincoln Health System, Inc. (the System) has elected not touse the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During 2022 and 2021, the System received COVID-19 grants from the American Rescue Plan (ARP) and theCoronavirus Aid, Relief, and Economic Security (CARES) Act. Under terms and conditions of ARP and CARES, theSystem is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health andHuman Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lostrevenue in certain reporting periods based on when the funds were received.The 2022 SEFA includes ARP and CARES funds of approximately $195,000 which were received by the System prior toJune 30, 2021. Of this total, $-0- was received under the Employer Identification Number (EIN) of Sarah Bush LincolnHealth Center, Inc. (the Health Center). The Health Centers affiliate, Heartland Health System, Inc. received $195,000under its EIN.During 2022, the System received ARP and CARES funds of approximately $8,995,000 and recognized this amount asrevenue in its 2022 consolidated statement of operations and changes in net assets as the terms and conditions ofthe ARP and CARES grants were satisfied by the System during 2022. HHS requires the $8,995,000 be reported on the2023 SEFA rather than the 2022 SEFA.
Title: FAIR MARKET VALUE OF DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED)
Accounting Policies: Expenditures reported on the accompanying consolidated schedule of expenditures of federal awards (SEFA) arereported on the accrual basis of accounting. Such expenditures are recognized following the cost principles containedin Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are notallowable or are limited as to reimbursement. Sarah Bush Lincoln Health System, Inc. (the System) has elected not touse the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During 2021, the System did not receive donated personal protective equipment from federal sources.