Title: 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 to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Essentia Health were based on applicable U.S. Department of Health and Human Services negotiated rates or sponsor-specified (capped) rates. Essentia Health did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Essentia Health under programs of the federal government for the year ended June 30, 2023. The information in the Schedule 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 Essentia Health, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Essentia Health.
Title: 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 to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Essentia Health were based on applicable U.S. Department of Health and Human Services negotiated rates or sponsor-specified (capped) rates. Essentia Health did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The following is a summary of the loans awarded through the United States Department of Agriculture Community Facilities Loans and Grants cluster. The beginning loan balances represent the amount outstanding at July 1, 2022. This amount is included on the schedule of expenditures of federal awards as required by the Uniform Guidance. The outstanding loan balances represent the amount outstanding at June 30, 2023. See the Notes to the SEFA for table.
Title: Provider Relief Fund
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 to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Essentia Health were based on applicable U.S. Department of Health and Human Services negotiated rates or sponsor-specified (capped) rates. Essentia Health did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) (ALN 93.498), Essentia Health 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 June 30, 2023 Schedule includes PRF expenditures of $45,422,479. Distributions of $45,422,479 were received by Essential Health from July 1, 2021 to June 30, 2022, of which Essentia Health recognized $45,422,479 as revenue in its June 30, 2022 consolidated financial statements, as the terms and conditions of the PRF grant were satisfied. HHS requires PRF amounts received July 1, 2021 to June 30, 2022 to be reported on the June 30, 2023 Schedule rather than the June 30, 2022 Schedule. The following is a summary of PRF distributions received by Essentia Health from July 1, 2021 to June 30, 2022, by entity, including the Employer Identification Number (EIN): See the Notes to the SEFA for table.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited)
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 to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Essentia Health were based on applicable U.S. Department of Health and Human Services negotiated rates or sponsor-specified (capped) rates. Essentia Health did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
During the year ended June 30, 2023, Essentia Health did not receive significant donated personal protective equipment from federal sources.