Audit 6760

Title: Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Coal Country Community Health Center, Inc. (Health Center) under programs of the federal government for the year ended April 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center. Expenditures reported in 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 allowed De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Health Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) during the years ended April 30, 2023 and 2022. The Health Center incurred eligible expenses, including lost revenue, and therefore recognized revenue totaling $118 and $588,090 for the years ended April 30, 2023 and 2022 on the financial statements. However, the PRF expenditures were recognized on the Schedule when the expenditures were included in the reporting to HHS for Period 3 and Period 4, defined as payments received between January 1, 2021 through December 31, 2021. As the total amount of $285,079 was included on the Period 4 report submitted to HHS, that amount is shown on the accompanying Schedule. The Health Center received no Period 3 payments. The amount of PRF expenditures included on the Schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.