Notes to SEFA
Title: CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards and schedule of expenditures of state and other financial assistance include the grant activity of Chattanooga-Hamilton County Hospital Authority d/b/a Erlanger Health System (the Primary Health System) and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Tennessee Comptroller of the Treasury, respectively. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic combined financial statements.
De Minimis Rate Used: N
Rate Explanation: The Primary Health System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Primary Health Systems federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Primary Health Systems continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Primary Health System expects such amounts, if any, to be immaterial.
Title: PROVIDER RELIEF FUNDS
Accounting Policies: The accompanying schedule of expenditures of federal awards and schedule of expenditures of state and other financial assistance include the grant activity of Chattanooga-Hamilton County Hospital Authority d/b/a Erlanger Health System (the Primary Health System) and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Tennessee Comptroller of the Treasury, respectively. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic combined financial statements.
De Minimis Rate Used: N
Rate Explanation: The Primary Health System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
As discussed in Note O to the accompanying combined financial statements, the Primary Health System received a significant amount of funding from the Coronavirus Aid, Relief, and Economic Security Act Provider Relief Fund (PRF) program. Expenditures under this program are subject to the Uniform Guidance. In accordance with the 2022 Compliance Supplement, PRF amounts received as of June 30, 2021 are the only amounts included in the accompanying schedule of expenditures of federal awards. Accordingly, amounts received for the year ended June 30, 2022 have not been included in the accompanying schedule of expenditures of federal awards.