Title: BASIS OF PRESENTATION (1)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Lehigh Valley Health Network and Subsidiaries (the Organization) 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). The Schedule presents only a selected portion of the operations of the Organization, and it is not intended to and does not present the consolidated financial position, results of operations, or cash flows of the Organization.
Title: 2023 PROGRAM EXPENDITURES INCURRED IN PRIOR YEARS (4)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During the year ended June 30, 2023, the Commonwealth of Pennsylvania Emergency Management Agency sub-awarded to the Organization federal funding obligated in 2023 by the U.S. Department of Homeland Security, Federal Emergency Management Agency for various project expenditures that were incurred in prior years. See the Notes to the SEFA for the chart/table.
Title: COMMONWEALTH OF PENNSYLVANIA - COMMISSION ON CRIME AND DELINQUENCY (5)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the awards passed through from the Commonwealth of Pennsylvania Commission on Crime and Delinquency to the Organization the following supplemental information is provided for the year ended June 30, 2023. See the Notes to the SEFA for the chart/table.
Title: COMMONWEALTH OF PENNSYLVANIA - DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS (6)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the award passed through from the Commonwealth of Pennsylvania Department of Drug and Alcohol Programs to the Organization the following supplemental information is provided for the year ended June 30, 2023. See the Notes to the SEFA for the chart/table.
Title: COMMONWEALTH OF PENNSYLVANIA - DEPARTMENT OF EDUCATION (7)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the awards passed through from the Commonwealth of Pennsylvania Department of Education to the Organization the following supplemental information is provided for the year ended June 30, 2023. See the Notes to the SEFA for the chart/table.
Title: COMMONWEALTH OF PENNSYLVANIA - DEPARTMENT OF HEALTH (8)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the award passed through from the Commonwealth of Pennsylvania Department of Health to the Organization the following supplemental information is provided for the year ended June 30, 2023. See the Notes to the SEFA for the chart/table.
Title: COMMONWEALTH OF PENNSYLVANIA - DEPARTMENT OF HUMAN SERVICES (9)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the award passed through from the Commonwealth of Pennsylvania Department of Human Services to the Organization the following supplemental information is provided for the year ended June 30, 2023. See the Notes to the SEFA for the chart/table.
Title: PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN RURAL DISTRIBUTION (10)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The PRF and ARP Rural Distribution expenditures reported on the Schedule include payments received from July 1, 2021 to June 30, 2022 totaling $31,797,790 from the follow providers. See the Notes to the SEFA for the chart/table.
Title: FEDERAL DIRECT STUDENT LOAN PROGRAM (11)
Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles in 2 CFR, Part 230 Cost Principles for Non-Profit Organizations, the cost principles contained in 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals; and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Expenditures reported on the Schedule for certain grants are recognized based on the following:
• COVID-19 PRF and ARP Rural Distribution, federal assistance listing number 93.498, represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submissions to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 through December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 30, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023. Any unused expenditures and/or lost revenues from any previous periods may be applied for funds.
• Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Organization’s project, and (2) the eligible expenditures have been incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
With respect to the Federal Direct Student Loans program, the Organization is only responsible for the performance of certain administrative duties; therefore, the transactions and the balances of loans outstanding related to this program are not included in the Organization’s consolidated financial statements. The Schedule includes the amounts loaned to students during the year ended June 30, 2023. It is not practical to estimate the outstanding balance of loans under this program.