Audit 4373

Accounting Policies: The accompanying consolidated schedule of expenditures of federal awards includes the federal award transactions of Catholic Health System, Inc. and Subsidiaries (the System) reported on the accrual basis of accounting. 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). In accordance with these requirements, certain grants are not dependent on the System’s expenditure activity and, accordingly, are considered to be expended in the fiscal year of receipt. The amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because the consolidated schedule of expenditures of federal awards presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, change in net assets or cash flows of the System. The System is the subrecipient of certain federal funds which are reported as expenditures and listed as passthrough funds on the consolidated schedule of expenditures of federal awards. The System is the subrecipient of certain federal funds which are reported as expenditures and listed as passthrough funds on the consolidated schedule of expenditures of federal awards. The System has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee uses the de minimis cost rate.