Title: Federal Loans
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 reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In September 2010, the Organization was awarded federal funds in the form of a loan not to exceed $12,000,000 by the United States Department of Agriculture, Rural Development (RD), Community Facilities Loans and Grants, Assistance Listings Number 10.766. The RD loan was for a hospital and clinic improvement project, and the loan is scheduled for repayment over a period of 30 years at an annual interest rate of 4%. At September 30, 2022, the outstanding loan balance is approximately $9,832,000.
Title: Provider Relief Fund
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 reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) (ALN 93.498), the Organization is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received.The September 30, 2022 Schedule includes PRF expenditures of $655,079. The Organization received PRF distributions of $655,079 from July 1, 2020 to September 30, 2021, and recognized as revenue in its September 30, 2021 consolidated financial statements, as the terms and conditions of the PRF grant were satisfied. HHS requires the $655,079 be reported on the September 30, 2022 Schedule.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited)
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 reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During the year ended September 30, 2022, the Organization did not receive significant donated personal protective equipment from federal sources.
Title: Basis of Presentation
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 reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Aitkin Community Hospital, Inc. d/b/a Riverwood Healthcare Center and Subsidiary (the Organization) under programs of the federal government for the year ended September 30, 2022. The information in the 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.