Audit 41025

Accounting Policies: 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Hawai'i Pacific Health and is presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The information on 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 (the Uniform Guidance). The Schedule of Expenditures of Federal Awards includes federal awards subject to the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Hawai'i Pacific Health, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hawai'i Pacific Health. 2. Summary of Significant 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 Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements.4. Provider Relief Fund The United States Department of Health and Human Services (HHS) has indicated the Provider Relief Funds (PRF) on the SEFA be reported corresponding to the reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal (the Portal). Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing for reporting requirements. Entities report into the Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). The SEFA includes $71,700,254 of PRF Funds received from HHS between July 1, 2020 and December 2020 (PRF Period 2) and between January 1, 2021 and June 30, 2021 (PRF Period 3),under the PRF program for Assistance Listing No. 93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. In accordance with guidance from HHS, these amounts a represented as Period 2 and Period 3 in the HHS PRF Reporting Portal. Such amounts were recognized as Other Revenue on Hawai'i Pacific Health's consolidated financial statements for the year ended June 30, 2021. Due to the PRF Reporting requirements, financial statement recognition does not match SEFA recognition. These amounts are presented on the SEFA under Assistance Listing Number 93.498 for the fiscal year ended June 30, 2022 and reconcile to the PRF information reported to HRSA as follows: [see table in report] The Hawaii Pacific Health PRF Reports for Periods 2 and 3 include General Distribution payments received by the following Hawaii Pacific Health Affiliates: [see table in report] De Minimis Rate Used: N Rate Explanation: 3. Indirect Costs Hawai'i Pacific Health does not use the 10% de minimis indirect cost rate provided for in the Uniform Guidance.