Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule 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.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of DeSoto Memorial Hospital District (the District) under programs of the federal government for the year ended September 30, 2023. The information in the Schedule 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the District’s financial statements.
For purposes of the Schedule, federal awards include all federal assistance entered into directly between the District and the federal government and sub-awards from nonfederal organizations made under federally sponsored agreements. The Schedule does not include payments received under Medicare and Medicaid reimbursement programs. Because the Schedule presents only a selected portion of the activities of the District, it is not intended to, and does not, present the net position, changes in net position or cash flows of the District.
Title: Note 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule 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.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule 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.
Title: Note 3. Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule 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.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Noncash Assistance, Insurance, Loans and Loan Guarantees Outstanding
Accounting Policies: Expenditures reported on the Schedule 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.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
There was a $20,000,000 direct USDA loan originally issued in June 2006. This loan was issued for the construction and expansion of the hospital facilities. The outstanding amount of the direct USDA loan is $11,872,823 as of September 30, 2023, and the direct USDA loan matures in June 2036. In accordance with guidance issued by the USDA, the amount included for the USDA expenditures in the Schedule for the year ended September 30, 2023, is $12,572,026, which represents the balance of the USDA loan as of October 1, 2022 (i.e., beginning of the audit period) plus the value of new loans received during the year ended September 30, 2023, which was zero.
Title: Note 5. Provider Relief Fund
Accounting Policies: Expenditures reported on the Schedule 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.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP) Rural
Distribution program (PRF) (ALN 93.498), the District 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 September 30, 2023, Schedule includes PRF expenditures of approximately $1,353,083.
Distributions of $1,353,083 were received by the District from July 1, 2021 to December 31, 2021.
The District recognized all of the $1,353,083 distribution received as revenue in its September 30, 2022
financial statements, as the terms and conditions of the PRF were satisfied. HHS requires PRF amounts
received between July 1, 2021 and June 30, 2022 to be reported on the September 30, 2023 Schedule
rather than the September 30, 2022 or 2021 Schedules.