Audit 38995

Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of thefederal award activity of Cobre Valley Regional Medical Center (the Hospital) under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule is presented in accordance withthe requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the Hospital, it is not intended to and does not present the financialposition, changes in net assets or cash flows for the Hospital.For purposes of the Schedule, federal awards include all grants and contracts entered into directly between theHospital, agencies, and departments of the federal government. The awards are classified into major programcategories in accordance with the provisions of the Uniform Grant Guidance.NOTE B - BASIS OF ACCOUNTINGExpenditures reported on the Schedule are reported on the accrual basis of accounting. For Assistance Listing (AL)number 93.498, (formerly CFDA numbers), the amount reported on the Schedule is based on the Period 4 ProviderRelief Fund (PRF) reports submitted to HRSA. Such expenditures are recognized following the cost principlescontained in Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expendituresare not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustmentsor credits made in the course of business to amounts reported as expenditures in prior years.NOTE C - INDIRECT COST RATEThe Hospitals election of the ten percent federal de minimis cost rate allowed under Title 2 U. S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance) is not considered necessary as there were no overhead cost allocations requiredinvolving the PRF funding.NOTE D - RELATIONSHIP OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TOFINANCIAL STATEMENTSConsistent with managements policy, federal awards and other grants are recorded in respective revenue categories.As result, the amount of total federal awards expended on the Schedule does not agree to total grant revenue on theStatement of Operations as presented in the Hospitals report on the audited financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.