Title: Footnote 2
Accounting Policies: 1. BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards (the “SEFA”) presents the expenditures of all federal award programs of Northside Hospital, Inc. and its subsidiaries (“Northside”) and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
The purpose of the SEFA is to present a summary of the activities of Northside for the year ended September 30, 2023, which have been financed by the United States Government. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports may not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards. In addition, Northside has not elected to use the 10% de minimis indirect cost rate.
Because the SEFA presents only a selected portion of the activities of Northside, it is not intended to, and does not, present either the financial position, results of operations, changes in net assets, or cash flows of Northside.
De Minimis Rate Used: N
Rate Explanation: The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports may not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards. In addition, Northside has not elected to use the 10% de minimis indirect cost rate.
2. CONTINGENCIES
These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although Northside’s management expects such amounts, if any, to be immaterial.
Title: Footnote 3
Accounting Policies: 1. BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards (the “SEFA”) presents the expenditures of all federal award programs of Northside Hospital, Inc. and its subsidiaries (“Northside”) and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
The purpose of the SEFA is to present a summary of the activities of Northside for the year ended September 30, 2023, which have been financed by the United States Government. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports may not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards. In addition, Northside has not elected to use the 10% de minimis indirect cost rate.
Because the SEFA presents only a selected portion of the activities of Northside, it is not intended to, and does not, present either the financial position, results of operations, changes in net assets, or cash flows of Northside.
De Minimis Rate Used: N
Rate Explanation: The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports may not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards. In addition, Northside has not elected to use the 10% de minimis indirect cost rate.
3. SUBRECIPIENTS
Uniform Guidance defines a subrecipient as a nonfederal entity that receives a sub-award from a pass-through entity to carry out part of a federal program but does not include an individual who is a beneficiary of such program or payments to a contractor. A contractor is an entity that receives a contract by which a nonfederal entity purchases property or services needed to carry out the project or program under a federal award. A nonfederal entity may concurrently receive federal funds as a recipient, subrecipient, and contractor, depending on the substance of its agreements with federal awarding agencies and passthrough entities. Therefore, Northside must make case-by-case determinations whether each agreement it makes for the disbursement of federal program funds casts the party receiving the funds as a subrecipient or a contractor based on the Uniform Guidance definitions and management’s judgement. The total amount identified as provided to subrecipients during the year ended September 30, 2023 was $1,279,562.