Notes to SEFA
Title: Basis of Presentation
Accounting Policies: The 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance; however, there are currently no indirect costs allocated directly to federal programs as the Organization only receives blended awards.
The accompanying schedule of expenditures of federal, state and local awards (the Schedule) includes the award activity of federal, state and local award programs of Adelphoi Village, Inc. (the Organization) for the year ended June 30, 2023. The federal award information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the state and AV activity is presented in accordance with the requirements of the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Self-Funded Health Insurance
Accounting Policies: The 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The Organization has elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance; however, there are currently no indirect costs allocated directly to federal programs as the Organization only receives blended awards.
The Organization uses the self-funded method to fund health insurance claims for 371 employees effective January 1, 2023. The initial funding amounted to approximately $117,000. Self-insurance allows the Organization to avoid making periodic premium payments to an insurance company. Instead, Adelphoi USA, Inc. collects monthly premiums from related parties and reserves deposits in amounts sufficient to cover reserves outlined in the agreement. The reserve deposits can be adjusted periodically based on the Organization's claim history. A stop-loss insurance policy is carried by the Organization which covers liability in excess of $175,000 per claim participant, with maximum aggregate per policy term of $1,000,000. The reserves for all known claims are reported as a component of accrued expenses.