Audit 54700

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Swope Health Services and its subsidiaries for the year ended December 31, 2022. All federal financial assistance received by Swope Health Services and its subsidiaries directly from federal agencies as well as federal financial assistance passed through other governmental agencies are included in the schedule. The information in this schedule is presented in accordance with the requirements ofSingle Audit Act and 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 this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because the schedule presents only aselected portion of the operations of Swope Health Services and its subsidiaries, it is not intended to and does not present the financial position, changes in net assets or cash flows of Swope Health Services and its subsidiaries.