Notes to SEFA
Title: Community Facilities Loans
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of Hegg Memorial Hospital d/b/a Hegg Health Center (the Center) under programs of the federal government
for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of
the operations of the Center, it is not intended to and does not present the financial position, changes in net
assets, or cash flows of the Center.
Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis
cost rate
Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance for the
direct loans. There were no loan advances during the year ended June 30, 2023. The outstanding balances at
June 30, 2023 were $7,211,642, $6,310,187 and $3,386,381 for the direct loans.
Title: Provider Relief Funds
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of Hegg Memorial Hospital d/b/a Hegg Health Center (the Center) under programs of the federal government
for the year ended June 30, 2023. The information is presented in accordance with the requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of
the operations of the Center, it is not intended to and does not present the financial position, changes in net
assets, or cash flows of the Center.
Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis
cost rate
The Center received amounts from the U.S. Department of Health and Human Services (HHS) through the
Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance
Listing #93.498) in the amount of $4,866,794. In accordance with the 2023 compliance supplement, the PRF
expenditures recognized on the schedule are based on the reporting to HHS for Period 4, defined as payments
received during July 1, 2021 to December 31, 2021 and Period 5, defined as payments received during January 1,
2022 to June 30, 2022, as required under the PRF program. Hegg Health Center did not receive funding during
period 5. The PRF expenditures are not recognized on the schedule until the expenditures are included in the
reporting to HHS as required under the PRF program.
The following summarizes the Provider Relief Funds and the timing of when the amounts were recognized in the
financial statements. (See report for Table)