Roseland Audit 2022

Roseland Community Hospital Association
and Subsidiaries
Independent Auditor’s Report and Consolidated Financial Statements
March 31, 2022 and 2021
AUDIT REPORT
LOPEZ & CO
CE~TIFIED PUBLIC ACCOUNTANTS
TABLE OF CONTENTS
Independent Auditor’s Report................................................................................................................. 2
Consolidated Financial Statements:
Statement of Financial Position. ..................................................................................................... 5
Statement of Activities. ....................................................................................................................... 6
Statement of Functional Expenses………………………………………………………….…………. 8
Statement of Cash Flows… ................................................................................................................ 10
Notes to the Consolidated Financial Statements. ............................................................................ 11
Independent Auditor’s Report on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards………………………………………………… 22
Independent Auditor’s Report on Compliance for Each Major Program and on Internal
Control Over Compliance Required by the Uniform Guidance…………………………………….. 24
Supplementary Information:
Schedule of Expenditures of Federal Awards……………………………………………………….. 27
Schedule of Findings and Questioned Costs…………………………………………………………. 28
Consolidated Year-End Financial Report……………………………………………………………... 32

EXPERTISE W I T H I N REACH LOPEZ & CO. CPAs
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of

Roseland Community Hospital Association and Subsidiaries
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Roseland Community
Hospital Association and Subsidiaries (entities jointly referred to as “the Hospital”), which comprise
the consolidated statement of financial position as of March 31, 2022, and 2021, and the related
consolidated statements of activities, functional expenses, and cash flows for the year then ended,
and the related notes to the financial statements.
In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Hospital as of March 31, 2022, and 2021, and the changes in its net assets and its cash flows for
the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are required to be independent of the Hospital and to
meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether
there are conditions or events, considered in the aggregate, that raise substantial doubt about the
Hospital’s ability to continue as a going concern within one year after the date that the consolidated
financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards and Government Auditing Standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the consolidated financial
statements.
L O P E Z C PA S . C O M • 2 7 0 2 W E S T C H I C A G O AV E N U E C H I C A G O , I L • 8 6 6 2 0 3 6 7 9 6
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In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, and design and perform audit procedures
responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Hospital’s internal control. Accordingly, no such
opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Hospital’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Emphasis of Matters
As discussed in Note 3 of the financial statements, the 2021 financial statements have been restated
to correct a misstatement. Our opinion is not modified with respect to this matter.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial
statements as a whole. The accompanying schedule of expenditures of federal awards, as required by
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards, consolidated year-end financial report, as required by
the Illinois Department of Human Service, are presented for purposes of additional analysis and are
not a required part of the consolidated financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the consolidated financial statements. The information has been subjected
to the auditing procedures applied in the audit of the consolidated financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the consolidated financial statements or to
the consolidated financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
schedule of expenditures of federal awards and consolidated year-end financial report are fairly
stated, in all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 06,
2023, on our consideration of the Hospital’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
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opinion on the effectiveness of the Hospital’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Hospital’s internal control over financial reporting and
compliance.
Chicago, IL
July 06, 2023
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ROSELAND COMMUNITY HOSPITAL ASSOCIATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2022 AND 2021
Restated
2022 2021
ASSETS:
Cash and Cash Equivalents $ 1,640,676 $ 5,512,426
Patient Accounts Receivable, Net of Allowances 5,408,912 1,670,706
Pledges and Other Receivables 267,466 374,844
Inventories 420,592 398,963
Other Current Assets 237,428 159,343
Assets Limited as to Use 206,197 206,197
Land, Property, and Equipment, Net of Accumulated Depreciation 10,626,211 12,538,474
Other Assets 340 -
Total Assets 18,807,822 20,860,953
LIABILITIES AND NET ASSETS:

Liabilities
Accounts Payable 13,242,152 2,792,125
Accrued Expenses 3,474,164 4,263,007
Current Portion of Promissory Note 166,668 166,667
Due to Third-Party Payers 3,591,019 3,859,606
Negotiations Payable - 1,526,904
Promissory Note 2,729,338 2,896,005
Professional and General Liability 2,634,324 2,831,242
Note Payable - -
Total Liabilities 25,837,665 18,335,556
Net Assets
Without Donor Restrictions (7,029,843) 3,338,397
Total Net Assets (7,029,843) (7,029,843) 3,338,397
Total Liabilities and Net Assets $ 18,807,822 $ 18,807,822 $ 21,673,953
The accompanying notes are an integral part of these consolidated financial statements.
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CONSOLIDATED STATEMENT OF ACTIVITIES
YEAR ENDED MARCH 31, 2022
Without Donor With Donor

Restrictions Restrictions Total
REVENUE:
Net Patient Service Revenue $ 135,006,921 $ - $ 135,006,921
Provision for Bad Debt (73,862,760) - (73,862,760)
Net Patient Service Revenue,

less Provision for Bad Debt 61,144,161 - 61,144,161
Other Operating Revenue 13,161,739 - 13,161,739
Total Revenue 74,305,900 - 74,305,900
EXPENSES:
Program Services 62,754,964 - 62,754,964
Management and General 21,048,460 - 21,048,460
Fundraising 57,716 - 57,716
Total Expenses 83,861,140 - 83,861,140
Change in Net Assets (9,555,240) - (9,555,240)
TOTAL NET ASSETS:
Net Assets, Beginning of Fiscal Year 2,525,397 - 2,525,397
Net Assets, End of Fiscal Year $ (7,029,843) $ - $ (7,029,843)
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RESTATED CONSOLIDATED STATEMENT OF ACTIVITIES
Without
Donor With Donor
Restrictions Restrictions Total
REVENUE:
Net Patient Service Revenue $ 90,204,398 $ - $ 90,204,398
Provision for Bad Debt (47,645,248) - (47,645,248)
Net Patient Service Revenue,

less Provision for Bad Debt 42,559,150 - 42,559,150
Other Operating Revenue 24,397,390 - 24,397,390
Total Revenue 66,956,540 - 66,956,540
EXPENSES:
Program Services 52,748,928 - 52,748,928
Management and General 17,802,815 - 17,802,815
Fundraising 48,851 - 48,851
Total Expenses 70,600,594 - 70,600,594
Change in Net Assets (3,644,054) - (3,644,054)
TOTAL NET ASSETS:
Net Assets, Beginning of Fiscal Year 6,169,451 - 6,169,451
Net Assets, End of Fiscal Year $ 2,525,397 $ - $ 2,525,397
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CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
Management
Hospital Holding Foundation New Rose Total Program and General Fundraising Eliminating Total
Salaries and Wages $ 20,665,415 $ - $ - $ 614,377 $ 21,279,792 $ 7,294,377 $ 19,975 $ - $ 28,594,144

Purchased Services 18,505,044 - - - 18,505,044 6,343,237 17,406 - 24,865,687
Contracted Physicians 4,592,193 - - 845,766 5,437,959 1,864,046 5,115 - 7,307,120
Fringe Benefits 3,979,681 - - - 3,979,681 1,364,172 3,743 - 5,347,596
Supplies 3,371,885 - - - 3,371,885 1,155,829 3,172 - 4,530,886
Depreciation and Amortization 812,489 1,318,637 - - 2,131,126 278,508 764 - 2,410,398
Repairs and Maintenance 1,619,605 - - - 1,619,605 555,175 1,523 - 2,176,303
Insurance Expense 1,574,844 - - - 1,574,844 539,832 1,481 - 2,116,157
Drugs and Solutions 1,366,600 - - - 1,366,600 468,449 1,285 - 1,836,334
Leases and Rentals 1,350,459 - - - 1,350,459 462,916 1,270 - 1,814,645
Utilities 853,850 - - - 853,850 292,686 803 - 1,147,339
Miscellaneous Operating Expenses 429,026 - 32,042 150,123 611,191 198,564 545 - 810,300
Food 438,810 - - 3,795 442,605 151,718 417 - 594,740
Interest Expense 141,155 - - - 141,155 48,386 133 - 189,674
Dues, Seminars & Subscriptions 89,168 - - - 89,168 30,565 84 - 119,817
Total Expenses $ 59,790,224 $ 1,318,637 $ 32,042 $ 1,614,061 $ 62,754,964 $ 21,048,460 $ 57,716 $ - $ 83,861,140
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RESTATED CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
Management
Hospital Holding Foundation Total Program and General Fundraising Eliminating Total
Salaries and Wages $ 21,077,381 $ - $ - $ 21,077,381 $ 7,224,993 $ 19,826 $ - $ 28,322,200

Purchased Services 12,378,907 - - 12,378,907 3,964,610 10,879 - 16,354,396
Supplies 5,126,215 - - 5,126,215 1,757,185 4,822 - 6,888,222
Fringe Benefits 4,190,120 - - 4,190,120 1,436,307 3,941 - 5,630,369
Contracted Physicians 2,844,634 - - 2,844,634 975,096 2,676 - 3,822,405
Depreciation and Amortization 214,452 1,318,637 - 1,533,089 525,519 1,442 - 2,060,050
Repairs and Maintenance 1,148,003 - - 1,148,003 393,517 1,080 - 1,542,600
Insurance Expense 1,043,066 - - 1,043,066 357,547 981 - 1,401,594
Drugs and Solutions 920,675 - - 920,675 315,593 866 - 1,237,134
Leases and Rentals 832,352 - - 832,352 285,317 783 - 1,118,452
Miscellaneous Operating Expenses 749,282 - - 749,282 256,842 705 - 1,006,829
Utilities 410,384 - - 410,384 140,673 386 - 551,443
Food 307,874 - - 307,874 105,534 290 - 413,698
Interest Expense 146,590 - - 146,590 50,249 138 - 196,977
Dues, Seminars & Subscriptions 35,293 - - 35,293 12,098 33 - 47,424
Foundation Expense RHF - - 5,062 5,062 1,735 5 - 6,802
Total Expenses $ 51,425,229 $ 1,318,637 $ 5,062 $ 52,748,928 $ 17,802,815 $ 48,851 $ - $ 70,600,594
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CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 2022 AND 2021
Restated
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
(Decrease) Increase in Net Assets $ (9,555,238) $ (2,831,054)
Adjustments to Reconcile Changes in Net Assets
to Net Cash Provided by Operating Activities:
Depreciation and Amortization 2,410,399 2,060,050
Increase (Decrease) in Patient Accounts Receivable (3,738,206) 10,971,491
Increase (Decrease) in Pledges and Other Receivables 107,378 (254,088)
(Increase) Decrease in Inventories (21,629) (2,452)
Increase (Decrease) in Other Current Assets (78,087) 77,888
Increase (Decrease) in Other Assets (340) -
(Increase) Decrease in Accounts Payable 10,450,027 (8,351,121)
(Increase) Decrease in Accrued Expenses (788,843) 270,372
(Increase) Decrease in Due to Third-Party Payers (268,587) 805,852
(Increase) Decrease in Negotiations Payable (1,526,904) 1,526,904
Increase (Decrease) in Malpractice Liability (196,918) (414,379)
Net Cash Provided (Used) by Operating Activities (3,206,948) 3,859,463
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment in Fixed Assets (498,136) (293,445)
Net Cash Provided (Used) by Investing Activities (498,136) (293,445)
CASH FLOWS FROM FINANCING ACTIVITIES:

Paydown on Promissory Note (166,666) (166,667)
Net Cash Provided (Used) by Financing Activities (166,666) (166,667)
NET CHANGE IN CASH AND CASH EQUIVALENTS (3,871,750) 3,399,351
CASH AND CASH EQUIVALENTS - Beginning of Fiscal Year 5,512,426 2,113,075
CASH AND CASH EQUIVALENTS - End of Fiscal Year $ 1,640,676 $ 5,512,426
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash Paid for Interest $ 189,674 $ 196,977
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2022 AND 2021
(1) Nature of Organization
Roseland Community Hospital Association, a non-profit corporation, operates a short-term

general acute care community hospital and various clinics. Roseland Community Hospital
Association provides general health care services to residents within its geographic service
area, including inpatient, outpatient, emergency room, physician, and other services. Roseland
Community Hospital Association has served the residents of the Pullman, Riverdale, and
Roseland areas since 1924.
During fiscal year ended March 31, 2010, Roseland Community Hospital Association
established the Roseland Community Hospital Foundation (the “Foundation”) to support the
mission of providing quality health care and medical services at the Hospital and in the
surrounding community.
In March of 2021, the hospital began operations of New Rose Healthcare Management LLC
(“New Rose”). The Hospital created New Rose to employ and contract medical professionals in
the Hospital’s emergency room and other specialty areas. New Rose is wholly-owned by
Roseland Hospital.
(2) Summary of Significant Accounting Policies
Consolidated Financial Statements
The consolidated financial statements include the accounts of Roseland Community Hospital
Association, the Foundation, New Rose, and the Holding Co. The Foundation, New Rose, and the
Holding Co., have been consolidated with Roseland Community Hospital Association for
financial reporting purposes since the four organizations are affiliated and under common
governance. All significant intercompany accounts and transactions have been eliminated in
consolidation. Roseland Community Hospital Association, the Foundation, New Rose, and the
Holding Co., are collectively referred to as “the Hospital.”
Basis of Presentation and Financial Statement Presentation
The Hospital follows accounting standards established by the Financial Accounting Standards
Board (FASB) to ensure consistent reporting of financial condition, results of operations, and
cash flows. References to Generally Accepted Accounting Principles (GAAP) in these footnotes
are the FASB Accounting Standards Codification™, sometimes referred to as the Codification or
ASC.
Cash and Cash Equivalents
The Hospital considers all highly liquid investments with an initial maturity of three months or
less to be cash equivalents.
Liquidity and Availability of Financial Assets
The Hospital has $7,317,054 of financial assets available within one year of the balance sheet
date to meet cash needs for general expenditures consisting of cash and cash equivalents of
$1,640,676 patient accounts receivable of $5,408,912, and other receivables of $267,466. None
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of the financial assets are subject to donor restrictions that make them unavailable within one
year of the balance sheet date. In the event of an unanticipated liquidity need, the Hospital will
seek external financing sources.
Functional Allocation of Expenses
The costs of providing various program and supporting services have been summarized and
allocated among programs and supporting services on a functional basis in the statement of
functional expenses. Accordingly, certain costs are considered supporting services to all
programs and to the Hospital in general. The supporting costs are allocated based on estimates
of time, effort, and usage.
Use of Estimates
The preparation of consolidated financial statements requires management to make estimates

and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenue and expenses during the reporting period. Actual results could
differ from those estimates. The use of estimates and assumption in the preparation of the
accompanying consolidated financial statements is primarily related to the determination of
the patient receivables and settlements with third-party payers and the accrual for professional
liability. Due to uncertainties inherent in the estimation and assumption process, it is at least
reasonably possible that changes in these estimates and assumptions in the near-term would
be material to the consolidated financial statements.
Patient Accounts Receivable, Provision for Uncollectible Accounts and Due from/to
Third‐Party Payers
The collection of receivables from third-party payers and patients is the Hospital’s primary
source of cash for operations and is critical to its operating performance. The primary collection
risks relate to uninsured patient accounts and patient accounts for which the primary
insurance payer has paid, but patient responsibility amounts (deductibles and co-payments)
remain outstanding. Patient receivables, where a third-party payer is responsible for paying
the amount, are carried at a net amount determined by the original charge for the service
provided, less an estimate made for contractual adjustments or discounts provided to third-
party payers.
Patient receivables due directly from the patients are carried at the original charge for the
service provided less amounts covered by third-party payers and less an estimated allowance
for doubtful receivables. Management estimates this allowance based on aging of its accounts
receivable and its historical collection experience for each payer type. Recoveries of receivables
previously written off are recorded as a reduction of bad debt expense when received.
The past-due status of receivables is determined on a case-by-case basis depending on the

payer responsible. Interest is generally not charged on past-due accounts.
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Receivables or payables related to estimated settlements on various payer contracts, primarily

Medicare and Blue Cross, are reported as amounts due from or to third-party payers.
Significant changes in payer mix, business office operations, economic conditions or trends in
federal and state governmental health care coverage could affect the Hospital’s collection of
accounts receivable, cash flows and results of operations.
Inventories
Inventories of supplies are stated at the lower of cost (first-in, first-out) or market.
Assets Limited as to Use
Assets limited as to use include restricted amounts set aside by the Board of Directors for
capital improvements and other purposes, over which the Board retains control and may at its
discretion subsequently use for other purposes.
Property and Equipment
Property and equipment are stated at cost. Depreciation is provided over the estimated useful
life of each class of depreciable asset and is computed on the straight-line method. Leased
equipment under capital leases is amortized over the shorter of the lease term or estimated
useful life. The estimated useful lives of depreciable property and equipment range from 5 to
25 years for land improvements, 10 to 40 years for buildings, and 3 to 20 years for furniture
fixtures. Amortization expenses on assets acquired under capital leases are included with
depreciation expense on owned assets. Interest costs incurred on borrowed funds during the
period of construction of capital assets are capitalized as a component of the cost of acquiring
those assets.
Gifts of long-lived assets, such as land, buildings, or equipment, are reported as unrestricted
support and are included in the income or loss from operations unless explicit donor
stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit
restrictions that specify how the assets are used and gifts of cash or other assets that must be
used to acquire long-lived assets are reported as restricted support. Absent explicit donor
stipulations about how long those long-lived assets must be maintained, expirations of donor
restrictions are reported when the donated or acquired long-lived assets are placed in service.
Professional Liability
The provision for professional liability includes the estimates of the ultimate costs for known
claims as well as claims not reported. The provision is actuarially determined. The Hospital is
completely self-insured for all claims under $5,000,000.
Charity Care
The Hospital provides care to patients who meet certain criteria under its charity care policy
without charge or at amounts less than established rates. Because the Hospital does not pursue
collection of amounts determined to qualify as charity care, they are not reported as revenue.
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Basis of Presentation
The consolidated financial statements have been prepared on the accrual basis of accounting
in accordance with accounting principles, generally accepted in the United States of America.
The consolidated financial statements presentation follows the recommendation of the

Financial Accounting Standards Board in its Accounting Standards Update (ASU) No. 2016-14,
Presentation of Financial Statements of Not‐for‐Profit Entities (Topic 958). The Hospital is
required to report information regarding its financial position according to two classes of net
assets:
Net Assets with Donor Restrictions: Net assets subject to donor-imposed conditions that may
or will be met by overcoming necessary barriers or restrictions of time. The Hospital held no
donor restricted net assets as of March 31, 2022 and 2021.
Net Assets without Donor Restrictions: Net assets available for use in general operations and
not subject to donor-imposed restrictions.
Revenues are reported as increases in unrestricted net assets unless use of the related assets
is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted
net assets. Gains and losses on investments and other liabilities are reported as increases or
decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation
or by law. Expirations of restrictions on net assets are reported as reclassifications between
applicable classes of assets.
Donor‐Restricted Gifts
Unconditional promises to give cash and other assets to the Hospital are reported at fair value
at the date the promise is received. Conditional promises to give and indications of an intention
to give are reported at fair value at the date the gift is received. The gifts are reported as either
donor restricted support if they are received with donor stipulations that limit the use of the
donated assets. When a donor restriction expires, that is, when a stipulated restriction ends by
occurrence of the passage of time or other events specified by donors, restricted net assets are
reclassified as unrestricted net assets and reported in the consolidated statements of changes
in net assets as net assets released from restrictions.
Tax‐Exempt Status
Roseland Community Hospital Association and the Foundation are non-profit corporations as
described in Section 501(c)(3) of the Internal Revenue Code (IRC) and are exempt from federal
income taxes on related income pursuant to Section 501(a) of the Code.
On April 1, 2009, the Hospital adopted the accounting standard on accounting for uncertainty
in income taxes, which addresses the determination of whether tax benefits claimed or
expected to be claimed on a tax return should be recorded in the consolidated financial
statements. Under this guidance, the Hospital may recognize the tax benefit from an uncertain
tax position only if it is more likely than not that the tax position will be sustained on
examination by taxing authorities, based on the technical merits of the position. Examples of
tax positions include the tax-exempt status of the Hospital, and various positions related to the
potential sources of unrelated business taxable income. The tax benefits recognized in the
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consolidated financial statements from such a position are measured based on the largest
benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement.
The guidance on accounting for uncertainty in income taxes also addresses de-recognition,
classification, interest and penalties on income taxes, and accounting in interim periods.
Roseland Community Hospital Association and the Foundation file forms 990 in the U.S. federal
jurisdiction and the State of Illinois. With few exceptions, Roseland Community Hospital
Association is no longer subject to examination by the Internal Revenue Service for fiscal years
before 2017. The Foundation filed its first return for the fiscal year ended March 31, 2011.
Net Patient Service Revenue
The Hospital has agreements with third-party payers which provide for reimbursement to the
Hospital at amounts different from its established rates. Payment agreements include
prospectively determined rates-per-discharge, discounted charges, or cost reimbursement
methodologies. Net patient service revenues are reported at the estimated net realizable
amounts from patients, third-party payers, and others for services rendered, including
estimated retroactive adjustments under reimbursement agreements with third-party payers.
Retroactive adjustments are accrued on an estimated basis in the period the related services
are rendered and adjusted in future periods, as final settlements are determined. Contractual
adjustments under third-party reimbursement programs represent the difference between the
Hospital’s billings at list price and the amounts reimbursed by Medicare, Medicaid, Blue Cross,
and certain other third-party payers; and any differences between estimated third-party
reimbursement settlements for prior years and subsequent final settlements. Contractual
adjustments under third-party reimbursement programs are accrued on an estimated basis in
the period the related services are rendered and are adjusted in the future periods as final
settlements are determined. A summary of the basis of reimbursement with major third-party
payers follows:
Medicare ‐ The Hospital is paid for inpatient acute care and outpatient care services rendered
to Medicare program beneficiaries under prospectively determined rates per discharge
(Prospective Payment Systems). These rates vary according to a patient classification system
that is based on clinical, diagnostic, and other factors. Inpatient non-acute services and defined
capital and medical education costs related to Medicare beneficiaries are paid based upon a
cost reimbursement method, established fee screens, or a combination thereof. The Hospital’s
classification of patients under Prospective Payment Systems and the appropriateness of the
patient’s admissions are subject to validation reviews. The Hospital is reimbursed for cost
reimbursable items at tentative rates with final settlement determined after submission of
annual reimbursement reports by the Hospital and audits by the Medicare fiscal intermediary.
Medicaid ‐ The Hospital is reimbursed at prospectively determined rates for each Medicaid
inpatient discharge. Outpatient services are reimbursed based on established fee screens. For
inpatient acute care services, payment rates vary according to a patient classification system
that is based on clinical, diagnostic, and other factors. The prospectively determined rates are
not subject to retroactive adjustment. The Hospital also receives incremental Medicaid
reimbursement for specific programs and services at the discretion of the State of Illinois
Medicaid Program. Medicaid reimbursement may be subject to periodic adjustment, as well as
to changes in existing payment levels and rates, based on the amount of funding available to
the Medicaid program.
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Blue Cross ‐ The Hospital also participates as a provider of health care services under a
reimbursement agreement with Blue Cross. The provisions of this agreement stipulate that
services will be reimbursed at a tentative reimbursement rate and that final reimbursement for
these services is determined after the submission of an annual cost report by the Hospital and
a review by Blue Cross.
Managed care organizations ‐ The Hospital has also entered into reimbursement agreements
with certain commercial insurance carriers, health maintenance organizations, and preferred
provider organizations. The basis for payment under these agreements includes discounts from
established charges and prospectively determined per diem rates.
Third‐party payer estimates ‐ Estimates for cost report settlements and contractual allowances
can differ from actual reimbursements based on the results of subsequent reviews and cost
report audits. Changes in third-party valuation allowances that relate to prior years are
reported in the consolidated statements of operations and changes in net assets. The impact of
such item was a decrease of approximately $236,000.
Laws and regulations governing the Medicare and Medicaid programs are complex and subject
to interpretation. As a result, there is at least a reasonable possibility that recorded estimates
will change by a material amount in the near-term. The Hospital’s management believes that it
is in compliance with all applicable laws and regulations and is not aware of any pending or
threatened investigations involving allegations of potential wrongdoing. While no such
regulatory inquiries have been made, compliance with such laws and regulations can be subject
to future government review and interpretation, as well as significant regulatory action
including fines, penalties, and exclusion from the Medicare and Medicaid programs.
Provider tax assessment program ‐ The Hospital is part of the State of Illinois hospital tax
assessment program which is administered by the Illinois Department of Public Aid. The laws
and regulations authorizing this program initially expired on June 30, 2005, but have been
extended to the period from July 1, 2005, through June 30, 2020. There was no assurance of the
continuation of this program after June 30, 2020. In April of 2020, the State passed a hospital
assessment redesign starting July 1, 2020, that will keep the program going until January 1,
2028. For the years ended March 31, 2022, the Hospital has recorded $25,051,422 pass through
assessment payments and $2,083,734 in direct assessment payment revenue (reported as net
patient service revenue) and $3,775,158 in provider tax expense (reported in other operating
expenses). In the past, the State of Illinois has significantly delayed certain payments related to
this program as well as collection of the related assessment tax. Although future payments
cannot be assured, management believes that the assessment program’s obligations will be
fulfilled in the next year.
(3) Prior Period Adjustment
The previously issued financial statements for the year ended March 31, 2021, have been
restated. Management discovered that there was a material amount of expenses in the period
ended March 31, 2021, that was not recorded. The adjustment resulted in an increase of Net
Assets with Donor Restrictions and Accounts Payable of $813,000 for the period ended
March 31, 2021. The restatement is reflected on the financial statements.
P a g e | 16
(4) Concentrations and Vulnerabilities
The Hospital maintained a bank account insured by the Federal Deposit Insurance Corporation
up to an aggregate amount of $250,000 for each depositor in each depositary institution. At
March 31, 2022, the Hospital had one aggregate balance exceeding insured amounts. The
Institution had $1,384,068, on deposit, with outstanding checks that had not yet cleared the
bank, which exceeded the aggregate limit by $1,134,068, exposing the Hospital to custodial
credit risk.
The Hospital grants credit without collateral to its patients, most of whom are local residents
and are insured under third-party payer agreements. The mix of net receivables from patients
and third-party payers at March 31, 2022, and 2021, is as follows:
2022 2021
Medicare -9% 2%
Medicaid 40% 49%
Managed Care 11% 12%
Patients 57% 36%
Other 1% 1%
100% 100%
(5) Charity Care
The Hospital maintains records to identify and monitor the level of charity care it provides in
accordance with the Illinois Hospital Uninsured Patient Discount Act. For the year ended March
31, 2022, and 2021, the Hospital provided approximately $646,000 and $568,000, respectively,
of charity care based on charges foregone for services rendered.
(6) Property and Equipment
A summary of property and equipment at March 31, 2022, and 2021, is as follows:
2022 2021
Land and Land Improvements $ 934,453 $ 934,453

Building and Building Improvements 32,674,024 32,674,024
Equipment 23,400,186 22,902,050
Leasehold Improvements 7,338 7,338
Leased Equipment Capitalized 772,588 772,588
Total at Cost 57,788,589 57,290,453
Less: Accumulated Depreciation (47,162,378) (44,751,979)
Net Property, Plant, and Equipment $ 10,626,211 $ 12,538,474
(7) Property Note and Note Payable
The Promissory Note dated June 26, 2014, matured on June 26, 2017. The note consists of
$4,027,761, bearing interest at a variable rate based on the Prime Rate and payable monthly
P a g e | 17
plus principal of $13,889. On August 25, 2022, the Promissory Note was refinanced again with
an extended maturity date of August 25, 2025. The Promissory Note consisting of $2,896,006,
bearing an interest rate no less than 5% per annum and payable at the time that each payment
of principal is made. Future maturities are as follows:
Fiscal Year
2023 $ 166,667
2024 166,667
2025 166,667
2026 2,396,005
$ 2,896,006
(8) Retirement Plan
The Hospital has a voluntary defined contribution retirement plan (Plan) covering
substantially all employees who work at least 1,000 hours annually and are over the age of 21.
Hospital contribution requirements under the terms of the Plan start at the enrollment period
following one year of service and are computed at a match of 50% of employee contributions
up to 6% of their annual compensation. Employer contributions are vested at 20% per year
over 5 years. Retirement plan expense under the terms of the Plan of approximately $165,000
and $64,000 for the years ended March 31, 2022, and 2021, respectively, are included in
employee benefits expense in the accompanying consolidated financial statements.
(9) Self‐Insurance – Accrued Professional Liability and General Liability
The Hospital is involved in litigation under various matters arising in the ordinary course of
business. Substantially all claims related to incidents occurring prior to 1976 are covered by
commercial insurance. Effective for the periods since 1976, the Hospital has adopted a self-
insurance program for professional (medical malpractice) and general liability claims. For
various years in this time frame, the Hospital has also obtained excess medical malpractice
insurance coverage from commercial insurance carriers.
In connection with its self-insurance program, the Hospital engaged the services of a
professional consultant for actuarial evaluations of self-insured funding requirements and
designated attorneys to handle legal matters relating to professional and general liability
claims. The ultimate cost of asserted and unasserted self-insured claims identified under the
Hospital’s incident reporting system, as well as estimates of claims incurred but not reported,
are accrued based on estimation methodologies that incorporate the Hospital’s past
experience, as well as other considerations including the nature of each claim or incident and
relevant trend factors. Accrued professional and general liability claim losses have been
discounted at 3.5% for the year ended March 31, 2022. Except for the amount classified on the
consolidated balance sheet as a current liability related to known claims, the portion of the
accrual for estimated professional and general liability claims expected to be paid within one
year of the balance sheet date is not readily determinable and, therefore, the remaining accrual
amount is classified as a noncurrent liability. An accrual for possible losses attributable to
incidents that may have occurred, but that have not been identified under the incident
reporting system is included in this liability.
P a g e | 18
Self-insured professional and general liability expense of approximately $2,296,154, and

$1,127,000, for the year ended March 31, 2022, and 2021, respectively, has been included with
insurance expense in the accompanying consolidated statements of operations and changes in
net assets. In September 2010, the Hospital obtained excess insurance coverage for claims in
excess of $5,000,000.
(10) Commitments and Contingencies
Medicaid reimbursement: Due to the Hospital’s relatively high Medicaid patient volume, the
Hospital receives additional reimbursement in the form of critical hospital adjustment
payments (CHAP), direct hospital adjustments (DHA) and safety net access payments (SNAP),
the majority of which is provided by the Illinois Medicaid program. The amount of additional
reimbursement from the Illinois Medicaid program which will be made to hospitals in the
future is uncertain, and future legislative changes to reimbursements provided to hospitals
could have a material adverse effect on the Hospital’s operating results.
Litigation: In addition to professional liability claims, the Hospital is involved in litigation

arising in the ordinary course of business. In the opinion of management, after consultation
with legal counsel, these matters are expected to be resolved without material adverse effect
on the Hospital’s consolidated balance sheets, results of operations, and cash flows.
Contingency: The FASB guidance on conditional asset retirement obligations clarified when an
entity is required to recognize a liability for a conditional asset retirement obligation. The
Hospital has a legal obligation to remove hazardous material from its facilities in the event the
facilities are renovated or replaced. Such hazardous materials include asbestos. Management
believes there is an indeterminate settlement date for the asset retirement obligations because
of the range of time over which the Hospital may settle the obligation is unknown. However,
management does not believe that the estimate of the liability related to these assets retirement
obligations is a material amount at March 31, 2022.
Regulatory environment including fraud and abuse matters: The health care industry is subject
to numerous laws and regulations of federal, state, and local governments. These laws and
regulations include, but are not necessarily limited to, matters such as licensure, accreditation,
government health care program participation requirements, reimbursement for patient
services, and Medicare and Medicaid fraud abuse. Government activity continues with respect
to investigations and allegations concerning possible violations of fraud and abuse statutes and
regulations by health care providers. Violations of these laws and regulations could result in
expulsion from government health care programs together with the imposition of significant
fines and penalties, as well as significant repayments for patient services previously billed.
Management believes that the Hospital is in compliance with fraud and abuse, as well as other
applicable government laws and regulations. While no regulatory inquiries have been made,
compliance with such laws and regulations can be subject to future government review and
interpretation, as well as regulatory actions unknown or unasserted at this time.
Illinois Hospital Uninsured Patient Discount Act: The provisions of the Hospital Uninsured
Patient Discount Act (the Act) became effective April 1, 2009. The Act requires Illinois hospitals
to provide certain mandated discounts from charges to the uninsured in Illinois. Charges are
to be discounted to no more than 135% of cost. Furthermore, a hospital may not collect more
than 25% of an uninsured family’s gross income in any one year. The Act did not have a
P a g e | 19
material impact on the consolidated financial statements or consolidated results of operations

of the Hospital.
CMS Recovery Audit Contractor Program: Congress passed the Medicare Modernization Act in
2003, which among other things established a three-year demonstration of the Medicare
Recovery Audit Contractor (RAC) program. The RACs identified and corrected a significant
amount of improper overpayments to providers. In 2006, Congress passed the Tax Relief and
Health Care Act of 2006 which authorized the expansion of the RAC program to all 50 states by
2010. The impact of the RAC program is reflected in the consolidated financial statements
within the Due to Third Party Payers balance.
(11) Fair Value Disclosures
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants. FASB guidance requires the
use of valuation techniques that are consistent with the market approach, the income approach
and/or the cost approach. Inputs to valuation techniques refer to the assumptions that market
participants would use in pricing the asset or liability. Inputs may be observable, meaning
those that reflect the assumptions market participants would use in pricing the asset or liability
developed based on market data obtained from independent sources, or unobservable,
meaning those that reflect the reporting entity’s own assumptions about the assumptions
market participants would use in pricing the asset or liability developed based on the nest of
information available in the circumstances. In that regard, this guidance establishes a fair value
hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets
for identical assets or liabilities and the lowest priority to unobservable inputs.
The fair value hierarchy is as follows:
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the
entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or other inputs that
are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions
about the assumptions that market participants would use in pricing an asset or liability.
Fair value of financial instruments: The following methods and assumptions were used by
the Hospital to estimate the fair value of other financial instruments:
The carrying values of cash and cash equivalents, accounts receivable, other receivables,
accounts payable, accrued expenses and amounts due to or from third-party payers are
reasonable estimates of their fair value due to the short-term nature of these financial
instruments.
The estimated fair value of the note payable is estimated based on the quoted market prices for
the same or similar issues or on current rates offered to the Hospital for a note of the same
remaining maturity. The fair value of the note payable approximates the carrying value due to
the relative short maturity of this instrument.
P a g e | 20
(12) Paycheck Protection Program Loan
On April 6, 2020, the Hospital received loan proceeds in the amount of $5,297,566 under the
Paycheck Protection Program (“PPP”). Established as part of the Coronavirus Aid, Relief and
Economic Security Act (“CARES Act”), the PPP provides for loans to qualifying organizations in
amounts up to 2.5 times the organization’s average monthly payroll expenses. PPP loans and
accrued interest are forgivable after a “covered period,” of 8 or 24 weeks, as long as the
borrower maintains its payroll levels and uses the loan proceeds for eligible purposes,
including payroll, benefits, rent, and utilities. The forgiveness amount will be reduced if the
borrower terminates employees or reduced salaries during the covered period. Any unforgiven
portion of a PPP loan is payable over five years at an interest rate of 1%, with a deferral of
payments for 10 months after the end of the covered period. The Hospital intended to use PPP
loan proceeds for purposed consistent with the PPP and applied for forgiveness within 10
months of the end of the covered period.
The Hospital recorded a note payable in the year ended March 31, 2021, for $5,297,566. The
loan obligation was legally forgiven by the Small Business Administration on June 8, 2021, and
recognized as revenue for the year ended March 31, 2021, when the forgiveness application
was filed, and requirements were met.
(13) COVID‐19
The COVID-19 pandemic, whose effects first became known in January 2020, is having a broad
and negative impact on commerce and financial markets around the world. The United States
and global markets experienced significant declines in value resulting from uncertainty caused
by the pandemic. The Organization is closely monitoring its liquidity and is actively working to
minimize the impact of these declines. The extent of the impact of COVID-19 on the
Organization’s operational and financial performance will depend on certain developments,
including the duration and spread of the outbreak and its impacts on the Organization’s donors,
all of which at present, cannot be determined. Accordingly, the extent to which COVID-19 may
impact the Organization’s financial position and changes in net assets and cash flows is
uncertain and the accompanying consolidated financial statements include no adjustments
relating to the effects of this pandemic.
(4) Subsequent Events
The Hospital has evaluated subsequent events through July 06, 2023, the date the consolidated
financial statements were available to be issued.
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors of
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the consolidated financial
statements of Roseland Community Hospital Association and Subsidiaries (entities referred jointly
as “the Hospital”), which comprise the consolidated statement of financial position as of March 31,
2022, and the related consolidated statements of activities, and cash flows for the year then ended,
and the related notes to the financial statements, and have issued our report thereon dated July 06,
2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Hospital’s
internal control over financial reporting (internal control) as a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the
consolidated financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Hospital’s internal control. Accordingly, we do not express an opinion on the
effectiveness of the Hospital’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. We identified certain deficiencies in internal control,
described in the accompanying schedule of findings and questioned costs as item 2022-001 that we
consider to be material weaknesses and item 2022-002 as significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Hospital’s consolidated financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could
have a direct and material effect on the financial statements. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
L O P E Z C PA S . C O M • 2 7 0 2 W E S T C H I C A G O AV E N U E C H I C A G O , I L • 8 6 6 2 0 3 6 7 9 6
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The Hospital’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the Hospital’s
response to the findings identified in our audit and described in the accompanying schedule of
findings and questioned costs. The Hospital’s response was not subjected to the other auditing
procedures applied in the audit of the consolidated financial statements and, accordingly, we express
no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
organization’s internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the organization’s internal control
and compliance. Accordingly, this communication is not suitable for any other purpose.
Chicago, IL
July 06, 2023
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Trustees of

Report on Compliance for Each Major Federal Program
Opinion
We have audited Roseland Community Hospital Association and Subsidiaries’ (entities jointly
referred to as “the Hospital”), compliance with the types of compliance requirements identified as
subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the
Hospital’s major federal program for the year ended March 31, 2022 The Hospital’s major federal
program is identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
In our opinion, the Hospital complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its
major federal program for the year ended March 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit
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). Our
responsibilities under those standards and the Uniform Guidance are further described in the
Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Hospital and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of the
hospital’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements
applicable to the Hospital’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the Hospital’s compliance based on our audit. Reasonable assurance is a high level of
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P a g e | 24
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with generally accepted auditing standards, Government Auditing Standards, and the
Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material
if there is a substantial likelihood that, individually or in the aggregate, it would influence the
judgment made by a reasonable user of the report on compliance about the Hospital’s compliance
with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government
Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the Hospital’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
 Obtain an understanding of the Hospital’s internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to
test and report on internal control over compliance in accordance with the Uniform Guidance,
but not for the purpose of expressing an opinion on the effectiveness of the Hospital’s internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify
all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
P a g e | 25
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements
of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Chicago, IL
July 06, 2023
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FEDERAL GRANTS/PASS THROUGH ASSISTANCE LISTING PASS THROUGH FY 2022

GRANT OR/PROGRAM TITLE NUMBER NUMBER EXPENDITURES
Department of Health and Human Services (DHHS):

Pass-through entity:
Illinois Department of Health & Human Services (IDHS):
State Opioid Response Hospital Warm Handoff - SOR 93.788 43CAC03506 914,502
Illinois Criminal Justice Information Authority - ICJIA 16.034 CESF820009 339,443
Family Care Management 93.667 FCSAU06065 21,630
IDHS Total 1,275,575
DHHS TOTAL 1,275,575
United States Department of Agriculture (USDA):
Women, Infant and Children (WIC) - Supplemental Nutrition 10.557 FCSAQ01089 $473,221
Women, Infant and Children (WIC) - Breastfeeding Peer Counseling 10.557 FCSAQ01128 $63,130
USDA TOTAL 536,352
GRAND TOTAL 1,811,927
Notes to the Schedule of Expenditures of Federal Awards:

1. This Schedule was prepared on the accrual basis of accounting
2. There were no federal non-cash awards, insurance or loan guarantees in the year under audit
3. There were no sub-recipients for this organization
4. Program tested as major program was Assitance Listing Number 93.788
5. The entity elected to use the 10% de minimis indirect cost rate
P a g e | 27
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
A. SUMMARY OF AUDITOR’S RESULTS
Consolidated Financial Statements
Type of report the auditor issued: Unmodified
Internal control over financial reporting:

 Material weakness identified? __X__ yes _____ no
 Significant deficiency identified? __X__ yes _____no
Noncompliance material to the consolidated financial statements _____ yes __X__ no

notes?
Federal Awards
Internal control over major federal programs:

 Material weakness identified? _____ yes __X__ no
 Significant deficiency identified? _____ yes __X__ no
Type of auditor’s report issued on compliance for major federal Unmodified

programs:
Any audit findings disclosed that are required to be reported in _____ yes __X__ no
accordance with Title 2 CFR 200.516(a)?
Identification of major federal program:
________Assistance Listing Number Name of Federal Program______________________________

93.788 State Opioid Response Hospital Warm Handoff - SOR
Dollar threshold used to distinguish between Type A and Type B $750,000

programs:
Auditee qualified as a low-risk auditee? _____ yes __X__ no
B. FINDINGS RELATED TO FINANCIAL STATEMENTS

YES
C. FINDINGS AND QUESTIONED COSTS RELATED TO MAJOR FEDERAL AWARDS

NO
P a g e | 28
D. PRIOR AUDIT FINDINGS
Reference Number Summary of Finding Status
Finding 2018‐001 Internal Control over Financial Reporting Resolved

(Material Weakness)
Context: The Hospital did not record a material
amount related to employee health insurance fringe
benefits resulting in a material understatement of
this expense.
Finding 2018‐002 Monitoring Patient Accounts Receivable Unresolved

(Material Weakness)
Context: The Hospital did not adequately estimate
the Allowance for Doubtful Accounts to reflect the
current collectability rate of Patient Accounts
Receivable. As a result, the Hospital overstated the
amount expected as bad debt and underestimated
the expected collection rate.
CAP: A review of allowable rate is taking place.
Finding 2018‐003 Monitoring Cost Reimbursements (Due to Third Unresolved

Party Payers) (Material Weakness)
Context: The Hospital’s general ledger was not
adjusted during the accounting year-end close
process resulting in a material overstatement of the
consolidated financial statements.
CAP: The timely request and issuance of the
Malpractice (AON) Report will eliminate this issue.
This responsibility must be assigned.
Finding 2020‐003 Internal Control over Fixed Assets (Material Unresolved

Weakness)
Context: The Hospital did not adjust the
accumulated depreciation balances to resemble the
fixed asset schedules.
CAP: Fixed Assets will be monitored and adjusted
accordingly on a quarterly basis by the Senior
Accountant.
Finding 2020‐006 Classifications between Accounts Receivable Resolved

and Allowance for Doubtful Accounts (Significant
Deficiency)
Context: Due to the mapping issues, the Hospital
presented an understatement in accounts
receivable, and overstatement in the allowance
balance.
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Finding 2020‐009 Internal Control over Statement of Expenditures Resolved

of Federal Awards (Material Weakness)
Context: The expenditures reported in the
statement of expenditures of federal awards could
not be verified in relation to the consolidated
financial statements.
Finding 2020‐010 Record Retention of Grant Expenditures Resolved

(Material Weakness)
Context: The monthly vouchers were not
accompanied by records necessary to substantiate
the expenses reported.
Finding 2021‐001 Internal Control over Accounts Receivable Unresolved

(Material Weakness)
Context: The Hospital provided proposed
adjustments during fieldwork to correct the
accounts receivable balance based on the subsidiary
ledger.
CAP: The Hospital’s attempt to adjust/correct the
Subsidiary Ledger created unforeseen issues.
During the fieldwork, additional ‘adjustment’ items
were identified and submitted.
Finding 2021‐002 Internal Control over Timely Financial Unresolved

Reporting (Material Weakness)
Context: The Hospital provided several material
adjustments after the financial statements were
provided to the auditors.
CAP: Financial statements will be prepared
monthly; reviewed, analyzed and adjusted
accordingly.
Finding 2021‐003 Unallowable Costs (Material Noncompliance) Resolved

Context: Monthly vouchers were selected for testing
and was determined that vouchers were submitted
based on a predetermined amount of payroll costs
and the amount was not adjusted to reflect actual
monthly payroll costs.
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Findings required to be reported by Government Auditing Standards, issued by the

Comptroller General of the United States:
Finding 2022‐001 – Internal Control over Timely Billing (Material Weakness)
Criteria: Management is responsible for establishing and maintaining internal control over timely
billings.
Condition: The Hospital has not established effective internal controls to ensure the billing process is
conducted in a timely and accurate manner.
Context: The Unbilled Receivables account was not monitored and caused a material misstatement in
revenue and receivables. Additionally, there is not sufficient documentation, which is one of the main
causes of the delays in the billing process.
Effect: The Unbilled Receivables account was materially misstated and a material amount of billings
were not complete.
Cause: The lack of internal control resulted in material misstatements of revenue and receivables,
and prevented positive cash flows.
Recommendation: The Hospital should implement internal controls to monitor the billing process and
ensure adequate documentation is provided in a timely manner in order bill on time and avoid
rejections.
Views of Responsible Official: This increase is due to increase in volume and lack of proper
documentation. The Hospital continues to work on assuring the proper documents are timely and
accurate.
Finding 2022‐002 – Record Retention (Significant Deficiency)
Criteria: The Hospital is responsible for maintaining supporting documentation for all transactions.
Condition: The Hospital has not established proper internal controls over its financial reporting.
Context: The Hospital could not provide support for numerous sample selections.
Effect: Numerous expenses and revenues could not be substantiated because of the lack of
documentation.
Cause: The lack of documentation caused high risk and additional procedures in testing expenses and
revenues.
Recommendation: The Hospital should implement internal controls to ensure all supporting
documentation is kept for all transactions per a retention period.
Views of Responsible Official: Implementation of proper Internal Controls and stronger Record
Retention is being put in process.
P a g e | 31
SUPPLEMENTARY INFORMATION
Illinois Grant Accountability and Transparency Act
Grantee Portal - Audit Consolidated Year-End Financial Report
Grantee Portal I Audit Reviews I Audit I CYEFR
[ Add a Program ] [ Certify & Submit ]
CSFA # Program Name $ State $ Federal $ Other $ Total

[View ] 444-26-1747 SOR Hospital Screening and Warm 0 914,502 0 914,502
Handoff
[View ] 444-80-0668 Supplemental Nutrition Program for 0 473,222 0 473,222

Women, Infants and Children - WIC
Program
[View ] 444-80-0670 Supplemental Nutrition Program for 0 63,130 0 63,130

Women, Infants and Children -
Breastfeeding Peer Counselor
Program
[View ] 444-80-2535 Family Case Management/High Risk 65,786 21,631 0 87,417

Infant Follow-up
[View ] 482-00-1716 Hospital Health Protection Grant 4,200,000 0 0 4,200,000

Program
[View ] 482-00-2813 Hospital Health Protection- ARPA 4,200,000 0 0 4,200,000

Grant Program
[View ] 546-00-2413 Coronavirus Emergency 0 339,443 0 339,443

Supplemental Funding Program
(CESF)
[View ] Other grant programs and activities 0 40,000 40,000
[View ] All other costs not allocated 73,543,426 73,543,426
Totals : 8,465,786 1,811,928 73,583,426 83,861,140
Please note the following:
• The CYEFR may be pre-populated with programs based on existing awards in the GATA system. These
programs cannot be removed. If no spending occurred in a program leave the amounts at zero.
• Any grant exP-enditures not associated with funding received through the State of Illinois are to be entered in
"Other grant programs and activities". The expenditures must be identified as federal (direct or pass-through)
or other funding.
• All other expenditures not related to grants are to be entered in "All other costs not allocated".
P a g e | 32
Grantee Portal I Audit Reviews I Audit I CYEFR I Program
[ Cancel l[ Save l
Agency Department Of Human Services (444)
Program SOR Hospital Screening and Warm Handoff (444-26-1747)
This program as added due to awards found in the CSFA. It cannot be removed.
Program Limitations ( O Yes @ No ]

Identifv Limitations (reauired if Yes)
I I
Mandatory Match% (o Yes @ No l Rate (required if Yes): I I
Indirect Cost Rate
I o.oo J%
Indirect Cost Rate Base I I

Category State Amount Federal Amount Match Amount Total
Personal Services (Salaries and

Wages) I o.oo J I 684124.oo J I o.oo J 684,124.00
Fringe Benefits I o.oo j I 123031.00 J I o.oo j 123,031.00
Travel I o.oo j I o.oo J I o.oo j 0.00
Equipment I o.oo j I o.oo J I o.oo j 0.00
Supplies I o.oo J [ 2561.oo J I o.oo J 2,561.00
Contractual Services I o.oo j I o.oo J I o.oo j 0.00
Consultant (Professional Services) I o.oo j I 10199.oo J I o.oo j 10,199.00
Construction I o.oo j I o.oo J I o.oo j 0.00
Occupancy - Rent and Utilities I o.oo j I 11450.00 J I o.oo j 11,450.00
Research and Development I o.oo j I o.oo J I o.oo j 0.00
Telecommunications I o.oo j I o.oo J I o.oo j 0.00
Training and Education I o.oo j I o.oo J I o.oo j 0.00
Direct Administrative Costs I o.oo j I o.oo J I o.oo j 0.00
Miscellaneous Costs I o.oo j I o.oo J I o.oo j 0.00
Total Direct Expenses o.oo 831,365.00 o.oo 831,365.00
Indirect Costs I o.oo j I 83,137.oo j I o.oo j 83,137.00
Total Expenses 0.00 914,502.00 0.00 914,502.00
[ Cancel l[ Save l
P a g e | 33
Grantee Portal / Audit Reviews / Audit / CYEFR / Program
Cancel ][ Save
Program Supplemental Nutrition Program for Women, Infants and Children - WIC Program
( 444-80-0668)
Program Limitations [ O Yes @ No j

Identify Limitations (required if Yes)
[ I
Mandatory Match% [ O Yes @ No Rate (required if Yes): I._____________,I
Indirect Cost Rate o.oo J%
Indirect Cost Rate Base I.________________________________,I

Wages) o.oo j I 332140.oo J o.oo j
'-------~
332,140.00
Fringe Benefits o.oo j I nsss.oo J '-------~

o.oo j 77,sss.oo
Travel o.oo J I o.oo J '-------~

o.oo J o.oo
Equipment o.oo J I o.oo J '-------~

o.oo J o.oo
Supplies o.oo J I 2700.oo J o.oo j

'-------~
2,700.00
Contractual Services o.oo j I o.oo J ' - - - - - -o.oo j o.oo

-~
Consultant (Professional Services) o.oo j I o.oo J '-------~
o.oo j o.oo
Construction o.oo J I o.oo J '-------~

o.oo J o.oo
Occupancy - Rent and Utilities o.oo J I 17498.oo J '-------~

o.oo J 17,498.oo
Research and Development o.oo J I o.oo J ..__ _ _o._oo

_,J o.oo
Telecommunications o.oo j I o.oo J ' - - - - - -o.oo j o.oo

-~
Training and Education o.oo j I o.oo J '-------~
o.oo j o.oo
Direct Administrative Costs o.oo J I 1483.00 J '-------~

o.oo 1 1,483.00
Miscellaneous Costs o.oo J I o.oo J '-------~

o.oo J o.oo
Total Direct Expenses 0.00 431,376.00 0.00 431,376.00
Indirect Costs o.oo j I 41,846.oo J .____ _ _o_._oo_,J 41,846.oo
Total Expenses 0.00 473,222.00 0.00 473,222.00
P a g e | 34
[ Cancel l[ Save l

Program Supplemental Nutrition Program for Women, Infants and Children - Breastfeeding
Peer Counselor Program (444-80-0670)
Program Limitations [ O Yes @ No ]

Identify Limitations (required if Yes)
[ I
Mandatory Match% [0 Yes @ No l Rate (required if Yes): I I
Indirect Cost Rate
I o.oo J%
Personal Services (Salaries and Wages) I o.oo J I 51295.00 J I o.oo J 51,295.00
Fringe Benefits I o.oo J I ss22.00 J I o.oo J 5,822.00
Travel I o.oo J I o.oo J I o.oo J 0.00
Equipment I o.oo J I o.oo J I o.oo J 0.00
Supplies I o.oo J I o.oo J I o.oo J 0.00
Contractual Services I o.oo l I o.oo J I o.oo J 0.00
Consultant (Professional Services) I o.oo J I o.oo J I o.oo J 0.00
Construction I o.oo l I o.oo J I o.oo J 0.00
Occupancy - Rent and Utilities I o.oo l I 274.oo J I o.oo J 274.00
Research and Development I o.oo l I o.oo J I o.oo J 0.00
Telecommunications I o.oo l I o.oo J I o.oo J 0.00
Training and Education I o.oo J I o.oo J I o.oo J 0.00
Direct Administrative Costs I o.oo l I o.oo J I o.oo J 0.00
Miscellaneous Costs I o.oo l I o.oo J I o.oo J 0.00
Total Direct Expenses 0.00 57,391.00 0.00 57,391.00
Indirect Costs I o.oo J I 5,739.oo J I o.oo J 5,739.00
Total Expenses 0.00 63,130.00 0.00 63,130.00
[ Cancel l[ Save l
P a g e | 35
Cancel ][ Save

Program Family Case Management/High Risk Infant Follow-up (444-80-2535)
Program Limitations [ O Yes @ No j

I I
Mandatory Match% [ O Yes @ No Rate (required if Yes): I~ - - - - - - ~I
Indirect Cost Rate o.oo J%
Indirect Cost Rate Base I~ - - - - - - - - - - - - - - - - - - - - - - - - - - ~I
Personal Services (Salaries and Wages) 52360.00 17216.oo J o.oo J 69,576.00
Fringe Benefits 8120.00 2670.oo J o.oo J 10,790.00
Travel 0.00 o.oo J o.oo J 0.00
Equipment 0.00 o.oo J o.oo J 0.00
Supplies 0.00 o.oo J o.oo J 0.00
Contractual Services 0.00 o.oo J o.oo J 0.00
Consultant (Professional Services) 0.00 o.oo J o.oo J 0.00
Construction 0.00 o.oo J o.oo J 0.00
Occupancy - Rent and Utilities 0.00 o.oo J o.oo J 0.00
Research and Development 0.00 o.oo J o.oo J 0.00
Telecommunications 0.00 o.oo J o.oo J 0.00
Training and Education 0.00 o.oo J o.oo J 0.00
Direct Administrative Costs 0.00 o.oo J o.oo J 0.00
Miscellaneous Costs 5306.00 1745.oo J o.oo J 7,051.00
Depreciation 0.00 o.oo J o.oo J 0.00
Total Direct Expenses 65,786.00 21,631.00 0.00 87,417.00
Indirect Costs o.oo J I o.oo l o.oo l 0.00
Total Expenses 65,786.00 21,631.00 0.00 87,417.00
P a g e | 36
[ Cancel l[ Save l
Agency Department Of Public Health ( 482)
Program Hospital Health Protection Grant Program (482-00-1716)

I I
Indirect Cost Rate
I o.oo J%


Wages) I 4200000.00 II o.oo J I o.oo J 4,200,000.00
Fringe Benefits I o.oo J I o.oo J I o.oo J 0.00
Contractual Services I o.oo J o.oo J I o.oo J 0.00
Consultant (Professional Services) I o.oo J o.oo J I o.oo J 0.00
Construction I o.oo J o.oo J I o.oo J 0.00
Occupancy - Rent and Utilities I o.oo J o.oo J I o.oo J 0.00
Research and Development I o.oo J o.oo J I o.oo J 0.00
Telecommunications I o.oo J I o.oo J I o.oo J 0.00
Direct Administrative Costs I o.oo J I o.oo J I o.oo J 0.00
Miscellaneous Costs I o.oo J I o.oo J I o.oo J 0.00
Total Direct Expenses 4,200,000.00 o.oo o.oo 4,200,000.00
Indirect Costs I o.oo J I o.oo J I o.oo J 0.00
Total Expenses 4,200,000.00 0.00 0.00 4,200,000.00
[ Cancel l[ Save l
P a g e | 37
[ Cancel ][ Save l
Agency Department Of Public Health ( 482)
Program Hospital Health Protection- ARPA Grant Program (482-00-2813)

This program as added due to awards found in the CSFA . It cannot be removed.
Program Limitations [ O Yes @ No ]

Identify Limitations (reauired if Yes)
[ I
Mandatory Match % [ O Yes @ No l Rate (required if Yes): j I
Indirect Cost Rate
I o.oo J%
Indirect Cost Rate Base
I I
Wages) I 4200000.00 II o.oo J I o.oo J 4,200,000.00
Fringe Benefits I o.oo J I o.oo J I o.oo J 0.00
Contractual Services I o.oo J I o.oo J I o.oo J 0.00
Consultant (Professional Services) I o.oo J I o.oo J I o.oo J 0.00
Construction I o.oo J I o.oo J I o.oo J 0.00
Occupancy - Rent and Utilities I o.oo J I o.oo J I o.oo J 0.00
Research and Development I o.oo J I o.oo J I o.oo J 0.00
Telecommunications I o.oo J I o.oo J I o.oo J 0.00
Direct Administrative Costs I o.oo J I o.oo J I o.oo J 0.00
Miscellaneous Costs I o.oo J I o.oo J I o.oo J 0.00
Total Direct Expenses 4,200,000.00 0.00 0.00 4,200,000.00
Indirect Costs I o.oo J I o.oo J I o.oo J 0.00
Total Expenses 4,200,000.00 0.00 0.00 4,200,000.00
[ Cancel ][ Save l
P a g e | 38
[ Cancel l[ Save l
Agency Illinois Criminal Justice Information Authority (546)
Program Coronavirus Emergency Supplemental Funding Program (CESF) (546-00-2413)

I I
Indirect Cost Rate
I o.oo J%


Wages) I o.oo J I 231991.oo J I o.oo J 231,991.00
Fringe Benefits I o.oo j I 37325.oo J I o.oo j 37,325.00
Travel I o.oo j I o.oo J I o.oo j 0.00
Equipment I o.oo j I o.oo J I o.oo j 0.00
Supplies I o.oo J [ o.oo J I o.oo J 0.00
Contractual Services I o.oo j I 70127.oo J I o.oo j 70,127.00
Consultant (Professional Services) I o.oo j I o.oo J I o.oo j 0.00
Construction I o.oo j I o.oo J I o.oo j 0.00
Occupancy - Rent and Utilities I o.oo j I o.oo J I o.oo j 0.00
Research and Development I o.oo j I o.oo J I o.oo j 0.00
Telecommunications I o.oo j I o.oo J I o.oo j 0.00
Training and Education I o.oo j I o.oo J I o.oo j 0.00
Direct Administrative Costs I o.oo j I o.oo J I o.oo j 0.00
Miscellaneous Costs I o.oo j I o.oo J I o.oo j 0.00
Total Direct Expenses o.oo 339,443.00 o.oo 339,443.00
Indirect Costs I o.oo j I o.oo j I o.oo j 0.00
Total Expenses 0.00 339,443.00 0.00 339,443.00
[ Cancel l[ Save l
P a g e | 39
[ Cancel l[ Save l
Program Other grant programs and activities
I
Category Direct Federal Other Amount Total
Personal Services (Salaries and Wages) I o.oo l I 30000.oo l 30,000.00

Fringe Benefits I o.oo l I 6000.oo l 6,000.00
Travel I o.oo l I o.oo l 0.00
Equipment I o.oo l I o.oo l 0.00
Supplies I o.oo l I o.oo l 0.00
Contractual Services I o.oo l I o.oo l 0.00
Consultant (Professional Services) I o.oo l I o.oo l 0.00
Construction I o.oo l I o.oo l 0.00
Occupancy - Rent and Utilities I o.oo l I o.oo l 0.00
Research and Development I o.oo l I o.oo l 0.00
Telecommunications I o.oo l I o.oo l 0.00
Training and Education I o.oo l I o.oo l 0.00
Direct Administrative Costs I o.oo l I o.oo l 0.00
Miscellaneous Costs I o.oo l I 4000.oo l 4,000.00
Total Direct Expenses 0.00 40,000.00 40,000.00
[ Cancel l[ Save l
P a g e | 40
[ Cancel ][ Save
I Program All other costs not allocated
Category Other Amount
Personal Services (Salaries and Wages) 20541017.00 j
Fringe Benefits 4509776.00 ]
Travel 0.00 ]
Equipment 0.00 ]
Supplies 9330336.00 ]
Contractual Services 24569679.00 ]
Consultant (Professional Services) 7307120.00 ]
Construction 0.00 ]
Occupancy - Rent and Utilities 1801729.00 ]
Research and Development 0.00 ]
Telecommunications 0.00 ]
Training and Education 44817.00 ]
Direct Administrative Costs 4714746.00 ]
Miscellaneous Costs 724206.00 ]
Total Direct Expenses 73,543,426.00
P a g e | 41

Roseland Audit 2022

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Roseland Community Hospital Association

Independent Auditor’s Report................................................................................................................. 2

Consolidated Financial Statements:

Statement of Financial Position. ..................................................................................................... 5

Statement of Activities. ....................................................................................................................... 6

Statement of Functional Expenses………………………………………………………….…………. 8

Statement of Cash Flows… ................................................................................................................ 10

Notes to the Consolidated Financial Statements. ............................................................................ 11

Independent Auditor’s Report on Internal Control Over Financial Reporting and on

Schedule of Expenditures of Federal Awards……………………………………………………….. 27

Schedule of Findings and Questioned Costs…………………………………………………………. 28

Consolidated Year-End Financial Report……………………………………………………………... 32

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of

LIABILITIES AND NET ASSETS:

Total Liabilities and Net Assets $ 18,807,822 $ 18,807,822 $ 21,673,953

Without Donor With Donor

Net Patient Service Revenue,

Other Operating Revenue 13,161,739 - 13,161,739

Total Revenue 74,305,900 - 74,305,900

Total Expenses 83,861,140 - 83,861,140

Change in Net Assets (9,555,240) - (9,555,240)

TOTAL NET ASSETS:

Net Assets, Beginning of Fiscal Year 2,525,397 - 2,525,397

Net Assets, End of Fiscal Year $ (7,029,843) $ - $ (7,029,843)

Net Patient Service Revenue,

Other Operating Revenue 24,397,390 - 24,397,390

Total Revenue 66,956,540 - 66,956,540

Total Expenses 70,600,594 - 70,600,594

Change in Net Assets (3,644,054) - (3,644,054)

TOTAL NET ASSETS:

Net Assets, Beginning of Fiscal Year 6,169,451 - 6,169,451

Net Assets, End of Fiscal Year $ 2,525,397 $ - $ 2,525,397

Salaries and Wages $ 20,665,415 $ - $ - $ 614,377 $ 21,279,792 $ 7,294,377 $ 19,975 $ - $ 28,594,144

Salaries and Wages $ 21,077,381 $ - $ - $ 21,077,381 $ 7,224,993 $ 19,826 $ - $ 28,322,200

Total Expenses $ 51,425,229 $ 1,318,637 $ 5,062 $ 52,748,928 $ 17,802,815 $ 48,851 $ - $ 70,600,594

CASH FLOWS FROM INVESTING ACTIVITIES:

CASH FLOWS FROM FINANCING ACTIVITIES:

NET CHANGE IN CASH AND CASH EQUIVALENTS (3,871,750) 3,399,351

CASH AND CASH EQUIVALENTS - Beginning of Fiscal Year 5,512,426 2,113,075

CASH AND CASH EQUIVALENTS - End of Fiscal Year $ 1,640,676 $ 5,512,426

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

(1) Nature of Organization

Roseland Community Hospital Association, a non-profit corporation, operates a short-term

(2) Summary of Significant Accounting Policies

Consolidated Financial Statements

Basis of Presentation and Financial Statement Presentation

Cash and Cash Equivalents

Liquidity and Availability of Financial Assets

Functional Allocation of Expenses

The preparation of consolidated financial statements requires management to make estimates

The past-due status of receivables is determined on a case-by-case basis depending on the

Receivables or payables related to estimated settlements on various payer contracts, primarily

Assets Limited as to Use

Property and Equipment

The consolidated financial statements presentation follows the recommendation of the

Net Patient Service Revenue

(3) Prior Period Adjustment

(4) Concentrations and Vulnerabilities

Noncompliance material to the consolidated financial statements _ yes X no

Assistance Listing Number Name of Federal Program______________________

Auditee qualified as a low-risk auditee? _ yes X no