Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the statutory basis of accounting. The statutory basis of accounting is not 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. The Company received notice from the Department of Health and Human Services that the statutory basis of accounting was an acceptable reporting model. 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.
De Minimis Rate Used: N
Rate Explanation: The Company has not elected to use the 10percent de minimis indirect cost rate allowed under the UniformGuidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mountain Health Cooperative 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 Mountain Health Cooperative, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mountain Health Cooperative.
Title: Solvency Loans
Accounting Policies: Expenditures reported on the Schedule are reported on the statutory basis of accounting. The statutory basis of accounting is not 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. The Company received notice from the Department of Health and Human Services that the statutory basis of accounting was an acceptable reporting model. 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.
De Minimis Rate Used: N
Rate Explanation: The Company has not elected to use the 10percent de minimis indirect cost rate allowed under the UniformGuidance.
The Company received a solvency loan from the Centers for Medicare and Medicaid Services. The total loan carries a 1.98% or 1.12% interest rate and is to be repaid 15 years from the disbursement date. The outstanding balance of the solvency loan at December 31, 2022 was $76,463,200. The loan is considered to be a federal expense since the loaned funds are subject to continuing compliance requirements.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the statutory basis of accounting. The statutory basis of accounting is not 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. The Company received notice from the Department of Health and Human Services that the statutory basis of accounting was an acceptable reporting model. 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.
De Minimis Rate Used: N
Rate Explanation: The Company has not elected to use the 10percent de minimis indirect cost rate allowed under the UniformGuidance.
The Organization does not have any subrecipients and therefore has not incurred subrecipient expenditures.