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: 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, 2021. 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, 2022. AssistanceBeginningOutstanding ListingLoan Loan Cluster Title/ Essentia Health Entity/ Federal Loan NumberBalanceBalanceCommunity Facilities Loans and Grants Cluster:Essentia Health Fosston: Note Payable10.780 $5,181,786 $5,085,877 Essentia Health Moose Lake:Rural America Bond Series 2013A10.766 6,318,235 6,134,188 Rural America Bond Series 2013B10.766 703,632 683,136 Revenue Bond Series 2016A10.766 6,030,623 5,927,136 Revenue Bond Series 2016B10.766 6,494,518 6,383,070 Revenue Bond Series 2016C10.766 6,958,412 6,839,004 Revenue Bond Series 2016D10.766 8,350,094 8,206,804 $40,037,300 $39,259,215
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: 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, 2022. 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: 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: 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, 2022 Schedule includes PRF expenditures of $31,294,113. Distributions of $31,394,367 were received by Essential Health from July 1, 2020 to June 30, 2021, of which Essentia Health recognized $31,294,113 as revenue in its June 30, 2021 consolidated financial statements, as the terms and conditions of the PRF grant were satisfied. HHS requires PRF amounts received July 1, 2020 to June 30, 2021 be reported on the June 30, 2022 Schedule rather than the June 30, 2021 Schedule. The following is a summary of PRF distributions received by Essentia Health from July 1, 2020 to June 30, 2021, by entity, including the Employer Identification Number (EIN): Amount Legal Entity EIN Received Innovis Health, LLC 26-1175213 2,046,433 SMMC 41-0695604 11,292,433 First Care Medical Services 41-0706143 256,380 Graceville Health Center 41-0726173 172,211 Northern Pines Medical Center 41-0841441 182,818 Deer River Healthcare Center 41-0844574 131,169 St. Mary's Regional Health Center 41-1620386 293,725 SMDCMC 41-1878730 16,726,999 Essentia Health Virginia 46-0909870 292,197 $31,394,367 Less: Funding Returned (100,254) $31,294,113 During the year ended June 30, 2022, Essentia Health received PRF distributions of approximately $45,019,000 and recognized approximately $46,370,000 of PRF distributions as revenue in its June 30, 2022 consolidated financial statements as the terms and conditions of the PRF grant were satisfied. HHS requires the $46,370,000 to be reported on a subsequent Schedule rather than on the June 30, 2022 Schedule.
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: 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, 2022, Essentia Health did not receive significant donated personal protective equipment from federal sources.