Title: BASIS OF PRESENTATION
Accounting Policies: 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Highpoint Health (the Hospital) under programs of the federal government for the period from
March 1, 2021 through November 30, 2022 (period ended November 30, 2022) and is presented on the accrual basis of accounting. The information in the 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 the Hospital, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hospital.
Title: PASS-THROUGH FUNDS TO SUB-RECIPIENTS
Accounting Policies: 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
During the period ended November 30, 2022, the Hospital did not pass-through funds to sub-recipients.
Title: PROVIDER RELIEF FUNDS
Accounting Policies: 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Under terms and conditions of the Provider Relief Funds (PRF) grant funds made available under the Coronavirus Aid, Relief, and Economic Security Act, the Hospital was required to report COVID-19 related
expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the PRF grant funds were received. PRF grant funds included on the Schedule were received by the Hospital and its blended component units, Health Services Corporation of Southeastern Indiana and Rising Sun Medical Center. HHS required PRF grant funds received prior to December 31, 2020, and expended through December 31, 2021, to be reported on the Schedule for the period ended November 30, 2022 rather than the Schedule for the period from January 1, 2020 through February 28, 2021. The Hospital received approximately $18,143,000 in PRF grant funds prior to December 31, 2020 and recognized $6,093,000 and $11,781,000 as revenue in its statements of revenues, expenses and changes in net position for the period ended November 30, 2022 and the period from January 1, 2020 through February 28, 2021, respectively, as the terms and conditions of the PRF grant funds were satisfied. PRF grant funds of $269,000 were returned to HHS during the period ended November 30, 2022.
Title: FAIR MARKET VALUE OF DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED)
Accounting Policies: 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
During the period ended November 30, 2022, the Hospital did not receive donated personal protective equipment from federal sources.