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 principal portion 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 Health Systems federal grants.
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 Health Systems 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 Health System.For purposes of the schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other passthrough entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the schedule. The Health System 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. Onecluster was identified in the Schedule as follows:Medicaid Cluster This cluster includes awards that assist agencies providing payments for medical assistance to lowincome persons.
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 principal portion 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 Health Systems federal grants.
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 passthrough agencies and the schedule may differ. Some of the factors that may account for any difference include the following: - The Health Systems 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 Health Systems financial statements and as expenditures in the program financial reports.
Title: FEDERAL PASSTHROUGH 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System is the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal passthrough funds. Federal awards other than those indicated as passthrough 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant monies received and disbursed by the Health System 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 Health System does not believe that such disallowance, if any, would have a material effect on the financial position of the Health System. As of June 30, 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System did not receive any federal noncash assistance for the fiscal year ended June 30, 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System did not provide federal funds to subrecipients for the fiscal year ended June 30, 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System 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 principal portion 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 Health Systems federal grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System did not have any federally funded insurance required to be reported on the schedule for the fiscal year ending June 30, 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 principal portion 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 Health Systems federal grants.
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 Health System is required to report COVID19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID19 related expenses and lost revenue in certain reporting periods based on when the funds were received and used by the Health System in accordance with the PRF terms and conditions.The Health System received PRF of approximately $10.6 million and $2.7 million, respectively, in the years ended June 30, 2022 and 2021. During the years ended June 30, 2022 and 2021, the Health System recognized approximately $10.6 million and $2.7 million, respectively, of PRF income included as nonoperating income in the Health Systems statements of revenues, expenses, and changes in net position, associated with lost operating revenues and COVIDrelated costs. Under the HHS requirements, the 2022 Schedule includes PRF of $2,745,547, which was received by theHealth System prior to January 1, 2021.