Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of Capital Health System, Inc. and Subsidiaries (Capital Health) for the year ended December 31, 2022, recorded on the accrual basis of accounting. The information in the Schedules 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 (the Uniform Guidance) and New Jersey OMB Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular Letter 15-08-OMB). In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 3). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Capital Health.For purposes of the Schedules, federal and state awards include any assistance provided by a federal or state agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans and loan guarantees, or other non-cash assistance. Federally funded amounts that are passed through state agencies are included on the schedule of expenditures of federal awards and are excluded from the schedule of expenditures of state awards.Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for Uniform Guidance awards. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
MORTGAGE INSURANCE_HOSPITALS (14.128) On April 7, 2009, Capital Health closed on a $755,875,000 mortgage insured under the provisions of the U.S. Department of Housing and Urban DevelopmentFederal Housing Administration Section 242 mortgage insurance program. At December 31, 2022 and January 1, 2022, the outstanding balance of the loan totaled $581,855,297 and $610,412,769, respectively. The U.S. Department of Housing and Urban Development (HUD) has determined that the mortgage insurance program is to be considered a federal award for purposes of compliance with U.S. Office of Management and Budget Uniform Guidance and is included in the total expenditures on the accompanying schedule of expenditures of federal awards.
Title: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distri
Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of Capital Health System, Inc. and Subsidiaries (Capital Health) for the year ended December 31, 2022, recorded on the accrual basis of accounting. The information in the Schedules 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 (the Uniform Guidance) and New Jersey OMB Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular Letter 15-08-OMB). In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 3). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Capital Health.For purposes of the Schedules, federal and state awards include any assistance provided by a federal or state agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans and loan guarantees, or other non-cash assistance. Federally funded amounts that are passed through state agencies are included on the schedule of expenditures of federal awards and are excluded from the schedule of expenditures of state awards.Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for Uniform Guidance awards. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
In accordance with the U.S. Department of Health and Human Services requirements specific to Federal Assistance Listing No. 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, the amount presented on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2022 for Federal Assistance Listing No. 93.498 relates to (i) Provider Relief Fund (PRF) payments received from January 1, 2021 through December 31, 2021 (ii) used for PRF-eligible activity from the period January 1, 2020 through December 31, 2022. This payment receipt period and activity period and the resulting amount presented on the accompanying schedule of expenditures of federal awards for the year ended December 31, 2022 reconciles to the PRF information previously reported to the Health Resources and Services Administration (HRSA) for PRF Reporting Periods 3 and 4 as follows: See the Notes to the SEFA for table. The PRF-eligible expenses attributable to Coronavirus Disease 2019 and lost revenues incurred by the System during the period of availability for PRF Reporting Period 4 (January 1, 2020 through December 31, 2022) are in excess of the distributions received in PRF Reporting Periods 1 and 2 (which addressed payments received during April 10, 2020 to December 31, 2020, and previously reported on the schedule of expenditures of federal awards for the year ended December 31, 2021) and distributions received in PRF Reporting Periods 3 and 4 (January 1, 2021 through December 31, 2021) and, therefore, the amounts presented in the table above and on the accompanying schedule of expenditures of federal awards are limited to distributions received in PRF Reporting Periods 3 and 4.