Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: auditee used the deminimis cost rate
The accompanying schedule of expenditures of federal awards (SEFA) for the year ended June 30, 2023
includes the federal grant activity of Valley Oaks Health, Inc. (the Corporation). The information in the
SEFA is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR)
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(the Uniform Guidance). The basic financial statement classifications may include other financial activity for
reporting purposes. Therefore, some of the amounts presented in the SEFA may differ from amounts
presented in, or used in the preparation of, the basic financial statements.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: auditee used the deminimis cost rate
Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: OTHER
Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: auditee used the deminimis cost rate
During the year ended June 30, 2023, the Corporation did not provide any federal awards to
subrecipients. In addition, there were no federal awards expended in the form of non-cash assistance and
there were no loan guarantees outstanding at year-end.
Title: PROVIDER RELIEF FUNDS
Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: auditee used the deminimis cost rate
Under terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aids, Relief, and
Economic Security (CARES) Act, the Corporation is required to report COVID-19 related expenses and lost
revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required
the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on
when the funds were received.
The 2023 SEFA includes PRF of approximately $419,000 which was received by the Corporation prior to
June 30, 2022. The Corporation recognized $419,000 as revenue in its 2022 statement of operations and
changes in net assets as the terms and conditions of the PRF grant were satisfied by the Corporation
during 2022. HHS required these PRF amounts be reported on the 2023 SEFA rather than the 2022 SEFA.
Title: FAIR MARKET VALUE OF DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED)
Accounting Policies: Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the
10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: auditee used the deminimis cost rate
During 2023, the Corporation did not receive donated personal protective equipment from federal
sources.