Notes to SEFA
Title: Basis of Presentation and Summary of Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal grant
activity of Meritus Medical Center, Inc. and subsidiaries (the Company) and is presented on the accrual
basis of accounting. The information in this 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 consolidated financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may
differ from amounts presented in or used in the preparation of the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The Company has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal grant
activity of Meritus Medical Center, Inc. and subsidiaries (the Company) and is presented on the accrual
basis of accounting. The information in this 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 consolidated financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may
differ from amounts presented in or used in the preparation of the consolidated financial statements.
Title: Indirect Cost
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal grant
activity of Meritus Medical Center, Inc. and subsidiaries (the Company) and is presented on the accrual
basis of accounting. The information in this 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 consolidated financial
statements. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may
differ from amounts presented in or used in the preparation of the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The Company has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The Company has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
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