Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: St. Francis does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Francis Health Services of Morris, Inc. and Subsidiaries (St. Francis) under programs of the Federal Government for the year ended September 30, 2022. The information 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 St. Francis, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of St. Francis.
Title: Note 4 - Provider Relief Fund and American Rescue Plan (ARP) Funds Rural D
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: St. Francis does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
St. Francis received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $3,583,169 as of September 30, 2022. The PRF expenditures are not recognized on the Schedule until the expenditures are included in the reporting to HHS as required under the PRF program. The following summarizes the Provider Relief funds and the timing of when the amounts were recognized in the consolidated financial statements. The total amount of PRF program expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus and the calculation of lost revenue. Actual amounts could differ from those estimates.