Audit 5799

Title: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of South Peninsula Hospital under programs of the federal government for the year ended June 30, 2023. The information in this Schedule 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 South Peninsula Hospital, it is not intended to and does not present the financial position, changes in net position or cash flows of South Peninsula Hospital. Expenditures reported 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. De Minimis Rate Used: N Rate Explanation: South Peninsula Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The total PRF Program expenditures on the Schedule includes $3,118,212 of lost revenues which are reported in accordance with the terms and conditions included in the Health Resources and Services Administration (HRSA) Post-Payment Notice of Reporting Requirements specific to the PRF Program.