Notes to SEFA
Title: NOTE 1: 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. Negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business amounts reported as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: North Olympic Healthcare Network has elected 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 award activity of North Olympic Healthcare Network under programs of the federal
government for the year ended May 31, 2023. The information in the Schedule is presented in accordance with the requirements of 2 CFR 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 North Olympic Healthcare Network, it is not intended to and does not present the financial position, changes in net assets, or cash flows of North Olympic Healthcare Network.
Title: NOTE 4: RECONCILIATION TO THE FINANCIAL STATEMENTS
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. Negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business amounts reported as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: North Olympic Healthcare Network has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
During the year ended May 31, 2022, North Olympic Healthcare Network received $239,891 of funds from the Provider Relief Fund (PRF) and recorded the total amount as unearned
grant revenue at fiscal year-end. For the years ended May 31, 2023, the financial statements reflect PRF revenue recognized of $239,891. The SEFA includes Provider Relief Funds of $239,891 that were received in PRF Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.
Title: NOTE 5: FEDERAL LOANS
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. Negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business amounts reported as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: North Olympic Healthcare Network has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
North Olympic Healthcare Network was approved by the United States Department of Agriculture and received a loan guarantee. The amount listed for this loan includes the
beginning of the period loan balance plus proceeds used during the year. The balance outstanding at the end of the period is $3,842,182.