Title: Note 1 – Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Tri-City Healthcare District (the “District”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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 the District, it is not intended to and does not present the financial position, results of operations, or cash flow of the District.
The District’s reporting entity is defined in Note 1 of the financial statements. The Schedule includes the Tax ID Number (TIN) of Tri-City Healthcare District 95-2126937, which is included in the reporting of the Provider Relief Fund for Reporting Period 4. All federal awards from federal agencies are included in the Schedule.
Title: Note 2 – Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: N/A
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 – Loan Balance
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: N/A
Loans outstanding at the beginning of the year plus the new value of new loans received during the year are included in the federal expenditures presented in the schedule of expenditures of federal awards. The balance of the loans outstanding as of June 30, 2023, consisted of:
Program Name Section 242 – Mortgage Insurance for Hospitals
Federal Assistance Listing Number 14.128
Loans outstanding as of June 30, 2022 $ 74,778,277
Loans awarded during the year ended June 30, 2023 -
Less: loan principal repaid (2,437,306)
Loans outstanding as of June 30, 2023 $ 72,340,971
Title: Note 4 – Provider Relief Fund
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: N/A
In accordance with guidance from the U.S. Department of Health and Human Services (DHHS), the District included the Reporting Period 4 (funds received between July 1, 2021 and December 31, 2021) expenditures for Provider Relief Fund Assistance Listing No. 93.498 of $1,063,261 in the Schedule for the year ended June 30, 2023, to align with DHHS reporting guidelines. In accordance with U.S. generally accepted accounting principles, $1,063,261 of Provider Relief Fund Assistance received by the District
was recognized as revenue during the year ended June 30, 2022, and is included in beginning net position as of and for the year ended June 30, 2023.
Title: Note 5 – Subrecipient Awards
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: N/A
The District did not provide any federal awards to subrecipients during the year ended June 30, 2023.