Audit 5423

Title: Basis of Presentation Accounting Policies: Expenditures 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital's federal expenditures do not include indirect administrative expenses. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant award activity of McPherson Hospital, Inc. (the Hospital), under programs of the federal government for the year ended June 30, 2023. The information 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.

Title: Significant Accounting Policies Accounting Policies: Expenditures 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital's federal expenditures do not include indirect administrative expenses. Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are Uniform Guidance, wherein certain types of recognized following the cost principles contained in the expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.

Title: Indirect Cost Rate Accounting Policies: Expenditures 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital's federal expenditures do not include indirect administrative expenses. The Hospital has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital's federal expenditures do not include indirect administrative expenses.