Audit 50940

Accounting Policies: 1. BASIS OF PRESENTATIONThe Schedule of Expenditures of Federal Awards (the SEFA) presents the expenditures of all federalaward programs of Northside Hospital, Inc. and its subsidiaries (Northside) and is presented on thecash basis of accounting. The information in this schedule is presented in accordance with therequirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance).Therefore, some amounts presented in this schedule may differ from amounts presented in, or used inthe preparation of, the consolidated financial statements.The purpose of the SEFA is to present a summary of the activities of Northside for the year endedSeptember 30, 2022, which have been financed by the United States Government. The regulations andguidelines governing the preparation of federal financial reports vary by federal agency and amongprograms administered by the same agency. Accordingly, the amounts reported in the federal financialreports may not necessarily agree with the amounts reported in the accompanying Schedule ofExpenditures of Federal Awards. In addition, Northside has not elected to use the 10% de minimisindirect cost rate.Because the SEFA presents only a selected portion of the activities of Northside, it is not intended to,and does not, present either the financial position, results of operations, changes in net assets, or cashflows of Northside.2. CONTINGENCIESThese programs are subject to financial and compliance audits by grantor agencies. The amount, if any,of expenditures that may be disallowed by the grantor agencies cannot be determined at this time,although Northsides management expects such amounts, if any, to be immaterial.3. SUBRECIPIENTSUniform Guidance defines a subrecipient as a nonfederal entity that receives a subaward from a passthroughentity to carry out part of a federal program but does not include an individual who is abeneficiary of such program or payments to a contractor. A contractor is an entity that receives acontract by which a nonfederal entity purchases property or services needed to carry out the project orprogram under a federal award. A nonfederal entity may concurrently receive federal funds as arecipient, subrecipient, and contractor, depending on the substance of its agreements with federalawarding agencies and passthrough entities. Therefore, Northside must make casebycasedeterminations whether each agreement it makes for the disbursement of federal program funds caststhe party receiving the funds as a subrecipient or a contractor based on the Uniform Guidancedefinitions and managements judgement. The total amount identified as provided to subrecipientsduring the year ended September 30, 2022 was $908,655. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.