Audit 97699

Accounting Policies: (1)Reporting Entity -The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of Institute for Healthcare Improvement, Inc. (the Institute), as described in note 1 to the basic financial statements.(2) Basis of Reporting - The accompanying Schedule has been prepared using the accrual basis of accounting and in accordance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The purpose of the Schedule is to present a summary of those activities of the Institute for the year ended April 30, 2022, which have been financed by the U.S. Government (federal awards). For purposes of the Schedule, federal awards include all federal assistance entered into directly between the federal government and the Institute and federal funds awarded to the Institute by a primary recipient. Because the Schedule presents only a selected portion of the activities of the Institute, it is not intended to and does not present the financial position, results of operation, changes in net assets, and cash flows of the Institute. (3) Summary of Facilities and Administrative Costs - The Institute recovers facilities and administrative costs (indirect costs) associated with expenditures pursuant to arrangements with the federal government. During fiscal year 2022, the Institute was awarded a provisional rate of 45.2% for the year ended April 30, 2022, based on modified total direct costs, for its research and development grant expenditures. The Institute has elected not to use the 10-percent de minimis indirect cost rate under the Uniform Guidance. (4) Subrecipient Awards - The Institute did not pass through any Federal Awards to subrecipient organizations during the year ended April 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.