Title: Note 3 - Subrecipients
Accounting Policies: The accompanying schedule of expenditures of Federal awards (SEFA) includes the Federal grant activity (both direct and pass through) of University Hospital (the Hospital or UH) and is presented on the accrual basis of accounting, except for the following programs:
• Homeland Security Grant Program (Assistance Listing Number (ALN 97.067) and Hurricane Sandy Community Development Block Grant Disaster Recovery Grant (CDBG-DR) – Co-Generation project activities (ALN 14.269) are presented based on the reimbursement amount requested and approved by the State of New Jersey, Economic Development Authority.
• COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution (ALN 93.498) represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submission to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 to December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 31, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023, where unused expenditures and/or lost revenues from previous periods may be applied for funds.
The information in these schedules 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 these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedules present only a selected portion of the activities of the Hospital, they are not intended to and do not present either the financial position, changes in financial position, or cash flows of the Hospital. The Hospital has included expenditures and adjustments on prior-year grant awards where extensions have been granted from funding agencies or additional funding is expected from funding agencies.
De Minimis Rate Used: N
Rate Explanation: The Hospital did not elect to use the 10% de minimis indirect cost rate for the year ended June 30, 2023, as permitted by Federal Uniform Guidance.
The Hospital did not pass any amounts through to subrecipients for the year ended June 30, 2023.
Title: Note 4 - Loan
Accounting Policies: The accompanying schedule of expenditures of Federal awards (SEFA) includes the Federal grant activity (both direct and pass through) of University Hospital (the Hospital or UH) and is presented on the accrual basis of accounting, except for the following programs:
• Homeland Security Grant Program (Assistance Listing Number (ALN 97.067) and Hurricane Sandy Community Development Block Grant Disaster Recovery Grant (CDBG-DR) – Co-Generation project activities (ALN 14.269) are presented based on the reimbursement amount requested and approved by the State of New Jersey, Economic Development Authority.
• COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution (ALN 93.498) represents the total expenditures and/or lost revenues from the Period 4 and Period 5 report submission to the PRF Reporting Portal. Period 4 is based on payments received from July 1, 2021 to December 31, 2021, with a period of availability of expenses and/or lost revenues from January 1, 2020 through December 31, 2022. Period 5 is based on payments received from January 1, 2022 to June 31, 2022, with a period of availability of expenses and/or lost revenues from January 1, 2020 through June 30, 2023, where unused expenditures and/or lost revenues from previous periods may be applied for funds.
The information in these schedules 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 these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedules present only a selected portion of the activities of the Hospital, they are not intended to and do not present either the financial position, changes in financial position, or cash flows of the Hospital. The Hospital has included expenditures and adjustments on prior-year grant awards where extensions have been granted from funding agencies or additional funding is expected from funding agencies.
De Minimis Rate Used: N
Rate Explanation: The Hospital did not elect to use the 10% de minimis indirect cost rate for the year ended June 30, 2023, as permitted by Federal Uniform Guidance.
On December 4, 2019, the Hospital entered into a subrecipient New Jersey Energy Resiliency Bank Funding Agreement with the New Jersey Economic Development Authority (the Authority). The Authority has agreed to provide funding for the development of a new combined heat and power system on the campus of the Hospital. The maximum project cost is estimated to be $48.0 million. The funding of this project consists of a pass-through Federal grant portion of $27.3 million and Federal loan proceeds of $11.8 million from the Hurricane Sandy Community Development Block Grant Disaster Recovery Grant (CDBG-DR) (ALN 14.269) from the Authority. Other funding consists of loans of $7.4 million from the Infrastructure Bank of New Jersey and $1.5 million from Public Service Enterprise Group, which are neither Federal nor State of New Jersey funding.
The total expenditures incurred for the project were $2,477,216 for the year ended June 30, 2023. Out of the total expenditures, $1,728,106 is related to the grant portion of the program. The remaining expenditures are funded through the Hospital’s draw down of the Federal loan proceeds of $749,110. No repayment was made on the Federal loan for the year ended June 30, 2023. The loan outstanding balance for the CDBG-DR (ALN 14.269) is $10,983,845 and 10,234,735 as of June 30, 2023 and 2022, respectively. The total expenditures reported on the SEFA amount to $1,728,106 of grant expenditures and $10,983,845 of cumulative loan expenditures as of June 30, 2023.