Title: BASIS OF PRESENTATION
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amounts reported in the accompanying Schedule were obtained from the Hospitals general ledger. Because the Schedule presents only a selected portion of the operations, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Hospital.The amounts presented on the Schedule for Assistance Listing 93.498, COVID-19 Provider Relief Fund (PRF), are based on the Periods 1 and 2 PRF report submissions to the PRF reporting portal. Amounts included in Period 1 submission represent amounts received between April 10, 2020 and June 30, 2020 that were expended by June 30, 2021, totaling $4,278,491. Amounts included in Period 2 submission represent amounts received between July 1, 2020 and December 31, 2020 that were expended by December 31, 2021, totaling $1,703,994.For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass-through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Hospital has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALNs have been appropriately listed by applicable programs. Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. No clusters were identified in the Schedule.
Title: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amounts reflected in the financial reports submitted to the awarding federal and/or pass-through agency and the Schedule may differ. Some of the factors that may account for any difference include the following: - The Hospitals fiscal year end may differ from the programs year end. - Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period. - Fixed asset purchases and the resultant depreciation charges are recognized as property and equipment, net in the Hospitals financial statements and as expenditures in the program financial reports.
Title: FEDERAL PASS-THROUGH FUNDS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
From time to time, the Hospital is the sub-recipient of federal funds reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as pass-through are considered direct and will be designated accordingly.
Title: CONTINGENCIES
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant monies received and disbursed by the Hospital are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, the Hospital does not believe that such disallowance, if any, would have a material effect on the financial position of the Hospital. As of May 31, 2022, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: NONCASH ASSISTANCE
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Hospital did not receive any federal noncash assistance for the fiscal year ended May 31, 2022.
Title: SUBRECIPIENTS
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Hospital did not provide federal funds to subrecipients for the fiscal year ended May 31, 2022.
Title: LOANS AND LOAN GUARANTEES
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Hospital did not have any loans or loan guarantee programs required to be reported on the Schedule.
Title: FEDERALLY FUNDED INSURANCE
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Hospital did not have any federally funded insurance required to be reported on the Schedule for the fiscal year ended May 31, 2022.
Title: PROVIDER RELIEF FUND
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aids, Relief, and Economic Security (CARES) Act, the Hospital 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 requires the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received and used by the Hospital in accordance with the PRF terms and conditions.The Hospital received PRF of approximately $4.2 million in the fiscal year ended May 31, 2020, and approximately $1.8M in the fiscal year ended May 31, 2021. The Hospital recognized approximately $3.6 million and $2.4 million, respectively, as other nonoperating revenue in its May 31, 2020 and 2021 statements of revenues, expenses and changes in net position, as the terms and conditions of the PRF grant were satisfied during these respective fiscal years. Under the HHS requirements, the 2022 Schedule includes PRF of $5,982,485, which was received by the Hospital prior to December 31, 2020. The remainder of the PRF amounts received will be reported in a subsequent Schedule.
Title: DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED)
Accounting Policies: This Schedule of Expenditures of Federal Awards (the Schedule) was prepared on the modified accrual basis of accounting. The modified accrual basis differs from the full accrual basis of accounting in that expenditures for property and equipment are expensed when incurred, rather than being capitalized and depreciated over their useful lives, and expenditures for the principalportion of debt service are expensed when incurred, rather than being applied to reduce the outstanding principal portion of debt, which conforms to the basis of reporting to grantors for reimbursement under the terms of the Hospitals federal grant.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During the emergency period of the COVID-19 pandemic, federal agencies and recipients can donate personal protective equipment purchased with federal assistance funds to various entities for the COVID-19 response. During the year ended May 31, 2022, the Hospital did not receive any donated personal protective equipment.