Audit 46907

Accounting Policies: NOTE 1 SINGLE AUDIT OVERVIEWThe Single Audit is the performance of a uniform audit of all Shenandoah Valley Medical System, Inc.s federal grants in conjunction with the annual audit of the basic combined financial statements. The adoption of such a procedure was formalized by 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 include financial compliance and the adequacy of internal control. The programs tested as major programs are indicated on the Schedule of Findings and Questioned Costs and amounted to 82% of total federal award expenditures. NOTE 2 FISCAL PERIOD AUDITED Single Audit testing procedures were performed for transactions occurring during the fiscalyear ended March 31, 2022.NOTE 3 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grantactivity of Shenandoah Valley Medical System, Inc. and is presented on the accrual basis ofaccounting. The information in this schedule is presented in accordance with the requirementsof the Uniform Guidance. The Organization has chosen to use the de minimus 10% rate forindirect cost allocation. The programs had no subrecipients.NOTE 4 RECONCILIATION OF SEFA TO FINANCIAL STATEMENTSFollowing is a reconciliation of the total expenditures of federal awards reported on theSchedule of Expenditures of Federal Awards (SEFA) and federal grants reported on thecombined statements of operations and changes in net assets/members equity:Total expenditures of federal awards per SEFA $ 8,731,692Provider Relief Funds recognized in FY21 (351,124)Provider Relief Funds recognized in FY22 148,141Federal grants per Combined Statements of Operationsand Changes in Net Assets/Member's Equity $ 8,528,709Provider relief funds recognized during the year ended March 31, 2022 are excluded from theSEFA, based on guidance provided by the U.S. Department of Health and Human Services.However, the Organization received and spent these funds during the year ended March 31,2022; therefore, the funds are recorded as federal grant revenue within the financialstatements. Conversely, the March 31, 2022 SEFA reports Provider Relief Funds that wererecognized in the March 31, 2021 financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.