Title: 3. Subrecipients
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2023. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS did not pass through any federal funds to subrecipients for the year ended June 30, 2023, and thus this information is not applicable to the Schedule.
Title: 4. Department of Health and Human Services - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2023. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
The Schedule includes grant activity related to the Department of Health and Human Services (HHS) Provider Relief Fund (PRF) and American Rescue Plan (ARP) Distribution Assistance Listing Number 93.498. As required based on guidance in the 2023 OMB Compliance Supplement, the Schedule includes all Period 4 funds received between July 1, 2021 and December 31, 2021 and expended by December 31, 2022 and Period 5 funds received between January 1, 2022 and June 30, 2022 and expended by June 30, 2023 as reported to HRSA via the PRF Reporting Portal.
The Schedule thus includes $14,148,609 of direct expenditures and $12,501,154 in lost revenue. Given the timing covered by Period 4 and Period 5, certain of these expenses were reflected in MHS’s fiscal year 2022 financial statements. Additionally, lost revenue does not represent an expenditure in MHS’s financial statements and thus is a reconciling item between the federal expenses in MHS’s financial statements and the amount included on the Schedule.
Title: 5. Advanced Funding
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2023. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS has one advance funding award (93.889) for which cash is held in a restricted account and valid expenditures within the scope of the award are applied against the advanced funds. MHS tracks interest income and remits the income back to the Department of Health and Human Services Division of Payment Management on an annual basis. This award is a calendar year based grant, and expenditures are required to be incurred by calendar year end. The award agreement permits a 15% carryover of funds into the next calendar year, which are required to be expended within a 90 day period. At December 31, 2022, MHS had $0 in carryover balance relating to the 2023 calendar year award.