Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes thegrant activity of Shore Memorial Health System, Inc., (the System) and is presented on the accrual basisof accounting. The information in the Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance) and the State of New Jerseys OMB CircularLetter 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Therefore,some amounts presented in the Schedule may differ from amounts presented in, or used in the preparationof, the basic consolidated financial statements.Federally funded amounts that are passed through state agencies are included as expenditures of federalawards and are excluded from expenditures of state awards.The System utilizes a negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate.Grant monies received and disbursed by the System are for specific purposes and are subject to audit bythe grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures.Based upon prior experiences, the System does not believe that such disallowances, if any, would have amaterial effect on the financial position of the System. Management is not aware of any material questionor disallowed costs as a result of grant audits in process or completed.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.