Notes to SEFA
Title: Note 4 - Community Facilities Loan Program
Accounting Policies: Note 1 - Basis of Presentation - The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Compass Memorial Healthcare (Hospital) under programs of the federal government for the year ended June 30, 2023. The information 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net position or cash flows of the Hospital.
Note 2 - Summary of Significant Accounting Policies - Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate.
Expenditures reported in this schedule under the U.S. Department of Agriculture (USDA) Rural Development Program Community Facilities Loans and Grants consist of the beginning of the year outstanding loan balance plus accrued interest added to the loan balance as principal. From July 2020 through June 2022, the USDA allowed the Hospital payment deferral of principal and interest payments and reamortized the loans in July 2022, capitalizing the previously accrued interest as loan principal. The outstanding balance at June 30, 2023 for the USDA loans was $23,008,528.
Title: Note 5 - Provider Relief Fund and American Rescue Plan Rural Distribution
Accounting Policies: Note 1 - Basis of Presentation - The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Compass Memorial Healthcare (Hospital) under programs of the federal government for the year ended June 30, 2023. The information 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net position or cash flows of the Hospital.
Note 2 - Summary of Significant Accounting Policies - Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate.
The Hospital received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $5,167,025 through June 30, 2023. The Hospital reported interest earned of on the PRF payments of $8,928 ($8,868 in period 1 and $60 in period 4). The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.
The following summarizes the PRF program and the timing of when the amounts were recognized in the financial statements.