Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: See additional notes.
De Minimis Rate Used: N
Rate Explanation: THE MEDICAL CENTER HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER UNIFORM GUIDANCE.
The accompanying schedule of expenditures of federal awards includes the federal activity of Rhea Medical Center (the Medical Center) for the year ended June 30, 2023. The information in this schedule 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 Requirement for Federal Awards (Uniform Guidance). Because the schedule of expenditures of federal awards presents only a selected portion of the operations of the Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Medical Center.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: See additional notes.
De Minimis Rate Used: N
Rate Explanation: THE MEDICAL CENTER HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER UNIFORM GUIDANCE.
Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. 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. The Medical Center has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PROVIDER RELIEF FUNDS
Accounting Policies: See additional notes.
De Minimis Rate Used: N
Rate Explanation: THE MEDICAL CENTER HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMUS INDIRECT COST RATE ALLOWED UNDER UNIFORM GUIDANCE.
Under terms and conditions of the Provider Relief Funds and the American Rescue Plan Rural Distribution, the Medical Center is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received. The schedule of expenditures of federal awards includes Provider Relief Funds and the American Rescue Plan Rural Distributions of $2,369,662 which was received by the Medical Center during fiscal year 2022. HHS required these PRF amounts to be reported on the fiscal year 2023 schedule of expenditures of federal awards. The Medical Center recognized $1,070,000 and $1,299,662 as revenues for the years ended June 30 2023 and 2022, on the statements of revenue, expenses, and changes in net position, respectively, as the terms and conditions of the Provider Relief Funds and the American Rescue Plan Rural Distribution grant were satisfied by the Medical Center.