Title: 1. Organization
Accounting Policies: 2. Significant Accounting Polices The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the Network under programs of the federal government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the Network, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Network. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Network and agencies and departments of the federal government and all sub-awards to the Network by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Network does not use the 10% de minimis indirect cost rate for sponsored programs, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
St. Lukes Health Network, Inc. and Controlled Entities (the Network) is inclusive of St. Lukes Health Network, Inc. (Parent) and controlled entities as described within Footnote 1 of the footnotes to the Consolidated Financial Statements. The Network is a not-for-profit tax-exempt corporation which controls eight acute care hospitals, an organization of physician practices and several other healthcare related organizations serving Bethlehem, Pennsylvania and surrounding communities. The St. Lukes Hospital School of Nursing of Bethlehem, Pennsylvania (School) at St. Lukes Hospital of Bethlehem, Pennsylvania (Hospital) is a controlled entity of the Parent. The School provides a program of classroom and clinical preparation for the nursing profession. The Student Financial Assistance expenditures are solely for the benefit of the School. The Research and Development expenditures are for the benefit of the acute care hospitals and the Other Sponsored Program expenditures benefit the acute care hospitals and other entities across the Network. The Network's consolidated financial statements include the operations of Penn Foundation, Inc., Penn Villa Corp, and Penn Gardens, Inc., which are not included in the Networks schedule of expenditures of federal awards during the year ended June 30, 2022.
Title: 3. Subrecipients
Accounting Policies: 2. Significant Accounting Polices The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the Network under programs of the federal government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the Network, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Network. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Network and agencies and departments of the federal government and all sub-awards to the Network by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Network does not use the 10% de minimis indirect cost rate for sponsored programs, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Network did not pass through any funds to subrecipients for the year ended June 30, 2022 and thus this information is not applicable to the Schedule.
Title: 4. HRSA COVID-19 Testing and Treatment for the Uninsured
Accounting Policies: 2. Significant Accounting Polices The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the Network under programs of the federal government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the Network, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Network. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Network and agencies and departments of the federal government and all sub-awards to the Network by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Network does not use the 10% de minimis indirect cost rate for sponsored programs, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Network conducted COVID-19 testing and/or provided treatment for uninsured individuals with a COVID-19 primary diagnosis on or after February 4, 2020 and as such has requested claims reimbursement under Assistance Listing Number 93.461 Health Resources and Services Administration's ("HRSA") COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment and Vaccine Administration for the Uninsured program. The Network has recorded $1,111,835 on the Schedule of Expenditures of Federal Awards that represents claims with service dates during fiscal year 2022. Claims not yet submitted or reimbursed have been estimated based on services provided and expected reimbursement rates and any adjustments based on actual cash receipts, will be reflected in the Network's fiscal year 2023 Schedule of Expenditures of Federal Awards.
Title: 5. Department of Health and Human Services Provider Relief Funds
Accounting Policies: 2. Significant Accounting Polices The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the Network under programs of the federal government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the Network, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Network. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Network and agencies and departments of the federal government and all sub-awards to the Network by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Network does not use the 10% de minimis indirect cost rate for sponsored programs, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Schedule includes grant activity related to the Department of Health and Human Services ("HHS") Provider Relief Fund Assistance Listing Number 93.498. As required based on guidance in the 2022 OMB Compliance Supplement, the Schedule includes all Period 2 and 3 funds received between July 1, 2020 and June 30, 2021 and expended by June 30, 2022 as reported to HRSA via the PRF Reporting Portal, except for the entities noted as being excluded from this report in Note 1. The Schedule thus includes $2,929,289 million of direct expenditures and $61,888,537 million in lost revenue. Given the timing covered by Period 2 and 3 funds, certain of these expenses were reflected in the Networks fiscal year 2021 financial statements. Additionally, lost revenue does not represent an expenditure in the Networks financial statements and thus is a reconciling item between the federal expenses in the Networks financial statements and the amount included on the Schedule.
Title: 6. Loan Programs
Accounting Policies: 2. Significant Accounting Polices The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the Network under programs of the federal government for the year ended June 30, 2022. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the Network, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the Network. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the Network and agencies and departments of the federal government and all sub-awards to the Network by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Network does not use the 10% de minimis indirect cost rate for sponsored programs, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As of June 30, 2022, the Network had $83,632,842 in debt payable to the United States Department of Agriculture (Assistance Listing #10.766). Details of the debt balances outstanding, maturity dates, and other related information is included in Note 12 to the consolidated financial statements.