Audit 7542

Title: BASIS OF PRESENTATION Accounting Policies: (a) 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. (b) Community and Rural Health Services, Inc. dba Community Health Services has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. (c) There are no awards passed through to subrecipients. (d) Pass-through identifying numbers were not available. (e) The Organization's Provider Relief Funds (PRF) Phase 4 funds, of $332,369, have been recognized as revenue for the year ended March 31, 2022, and has been included on the schedule of expenditures of federal awards (SEFA) for the year ended March 31, 2023. De Minimis Rate Used: N Rate Explanation: Community and Rural Health Services, Inc. dba Community Health Services has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community and Rural Health Services, Inc. dba Community Health Services under programs of the federal government for the year ended March 31, 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 Community and Rural Health Services, Inc. dba Community Health Services, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community and Rural Health Services, Inc. dba Community Health Services.