Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures for federal programs are recognized as incurred using the accrual basis of accounting and the cost of accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Chestnut Health Systems, Inc. and is presented on the accrual basis. The information in this 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic consolidated financial statements.
Title: Financial Statement Revenue
Accounting Policies: Expenditures for federal programs are recognized as incurred using the accrual basis of accounting and the cost of accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The consolidated financial statements for the years ended June 30, 2022 and 2021 reflect revenue recognized from the Provider Relief Fund (PRF) of $1,241,349 and $309,955, respectively. The SEFA for the year ended June 30, 2022 includes PRF of 309,955 which consists of PRF received in Reporting Period 2, in accordance with the requirements of the compliance supplement for assistance listing number 93.498.