Audit 40765

Accounting Policies: NOTE 1 SINGLE AUDIT OVERVIEW The Single Audit is the performance of a uniform audit of Walnut Street Community Health Center, Inc. and Affiliate d.b.a. Family Healthcare of Hagerstowns federal grants in conjunction with the annual audit of the basic combined financial statements. The information in the Schedule of Expenditures of Federal Awards in presented in accordance with the 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). The Single Audit fulfills all the Federal agencies audit requirements, which cover financial, compliance and internal controls. The programs tested as major programs are indicated on the Schedule of Expenditures of Federal Awards and on the Schedule of Findings and Questioned Costs and amounted to 90% of total federal award expenditures. NOTE 2 FISCAL PERIOD AUDITED Single Audit testing procedures were performed for transactions occurring during the fiscal year ended February 28, 2022. NOTE 3 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Walnut Street Community Health Center, Inc. and Affiliate d.b.a. Family Healthcare of Hagerstown and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. All costs charged to the grant are direct costs to the program. There are no indirect costs allocated to the program. The program elected not to use the 10% de minimis indirect cost rate. The program had no subrecipients. NOTE 4 RECONCILIATION OF FEDERAL GRANT REVENUE TO SEFA The accompanying schedule of expenditures of federal awards includes expenditures of federal awards that are reported differently from the way they are presented in the combined financial statements. Following is a reconciliation of federal expenditures per the SEFA to total federal grant revenue recognized in the combined financial statements: Federal expenditures per SEFA (Health Center Cluster) $3,058,975 Recognized Provider Relief Funds Received in 2021 4,755 Federal grants per Combined Statements of Operations $3,063,730 The Provider Relief Funds reported in the accompanying SEFA are based on OMB Compliance Supplement Guidance. This amount differs from the amount reported n the accompanying combined financial statements. In accordance with generally accepted accounting principles, Provider Relief Fund revenue are reported in the financial statements when earned. The amount reported in the accompanying SEFA corresponds to total Provider Relief Funds received between April 1, 2020 and December 31, 2020. This amount was recognized as revenue in the combined financial statements for the year ended February 28, 2021. Similarly, Provider Relief Funds recognized as revenue in 2021 will be reported on a future Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.