Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures of the Medical Center are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursements. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the grant activity of CatawbaValley Medical Center and Affiliate (the Medical Center) under the federal government for the year ended June30, 2022. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of theoperations of the Medical Center, it is not intended to and does not present the financial position, changes in netposition or cash flows of the Medical Center.
Title: Contingencies
Accounting Policies: Expenditures of the Medical Center are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursements. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Medical Centers 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 MedicalCenters continued participation in specific programs. The amount if any, of expenditures which may bedisallowed by the grantor agencies cannot be determined at this time, although the Medical Center expects suchamounts, if any, to be immaterial.
Title: Subrecipients
Accounting Policies: Expenditures of the Medical Center are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursements. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Of the federal expenditures presented on the Schedule, the University provided no federal awards tosubrecipients.
Title: Categorization of Expenditures and Other Matters
Accounting Policies: Expenditures of the Medical Center are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursements. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The categorization of expenditures by program included in the schedule of expenditures of federal and stateawards is based upon the grant documents. Changes in the categorization of expenditures occur based uponrevisions to the Assistance Listing, which is issued in June and December of each year. The schedule ofexpenditures of federal and state awards for the year ended June 30, 2022 reflects Assistance Listing changesissued through April 2022.