Notes to SEFA
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. CHN elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee elected not to use the 10-percent de minimis indirect cost rate.
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Community Healthcare Network, Inc. ("CHN") under programs of the federal government for the year ended December 31, 2022. The information in this 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 CHN, it is not intended to and does not present the financial position, change in net assets, or cash flows of CHN.
Title: Nonmonetary Assistance
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. CHN elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee elected not to use the 10-percent de minimis indirect cost rate.
Donated and nonmonetary assistance is reported in the Schedule at the fair value of the vaccinations received. The total federal share of vaccinations distributed by CHN amounted to $510,016 and is included in the consolidated statement of activities and changes in net assets. It is also included in the Schedule.
Title: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distri
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. CHN elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee elected not to use the 10-percent de minimis indirect cost rate.
For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, HHS has indicated the amounts on the schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The schedule includes $613,278 received from HHS between January 1, 2021, through December 31, 2021. In accordance with guidance from HHS, this amount represents $406,668 for Period 3 and $206,610 for Period 4. Amounts received in Periods 3 and 4 were recognized as DHHS grant revenue in the consolidated financial statements for the year ended December 31, 2020 and 2021, respectively.
Title: Teaching Health Center Graduate Medical Education Payment Program
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. CHN elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee elected not to use the 10-percent de minimis indirect cost rate.
CHN expended $62,303 of the Teaching Health Center Graduate Medical Education Payment program funding it received from the U.S. Department of Health and Human Services. The said program is funded under Federal assistance listing number 93.530 which is excluded from coverage under 2 CFR 200, Subpart F - Audit Requirements. Thus, it is not included in the accompanying Schedule.