Audit 52087

Title: Provider Relief Fund Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Children's Hospital Colorado Health System. Expenditures reported in the SEFA 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 limited as to reimbursement. The information in the SEFA 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). Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements of Children's Hospital Colorado Health System. For purposes of the SEFA, federal awards include any assistance provided by a federal agency, directly or indirectly, in the form of grants, contracts, cooperative agreements, loan and loan guarantees, or other non-cash assistance. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. De Minimis Rate Used: N Rate Explanation: 2. Indirect Costs: Children's Hospital Colorado Health System does not use the 10 percent de minimis indirect cost rate provided for in the Uniform Guidance. 3. Provider Relief Fund: The amount presented on the SEFA for Assistance Listing Number 93.498, COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds), is for the year ended December 31, 2022. The amount presented in the table below reconciles to the Provider Relief Fund (PRF) information reported to the Health Resources and Services Administration (HRSA) as follows: See the Notes to the SEFA for table. Health and Human Services (HHS) has indicated the PRF Funds on the SEFA be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). The SEFA includes $2,668,512 of PRF Funds received from HHS between January 1, 2021 through December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 3 and Period 4. Such amount was recognized as other revenues in Children's Hospital Colorado Health Systems consolidated financial statements in the year ended December 31, 2021.