Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: No funds were identified as having been provided to subrecipients by Baptist Hospitals of Southeast Texas and Subsidiaries and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. Baptist Hospitals of Southeast Texas and Subsidiaries has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: Baptist Hospitals of Southeast Texas and Subsidiaries has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Baptist Hospitals of Southeast Texas and Subsidiaries and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of Baptist Hospitals of Southeast Texas and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Baptist Hospitals of Southeast Texas and Subsidiaries.
The amount in the accompanying schedule represents the highest loan balance during the year under audit. The outstanding loan balance at June 30, 2023, consists of: Program Name HUD Section 242 Mortgage Insurance Hospitals Federal Assistance Listing Number 14.128 Outstanding Balance $34,538,179 Program Name Supplemental Loan Insurance - Multifamily Rental Housing Federal Assistance Listing Number 14.151 Outstanding Balance $31,982,595.
Title: RECONCILATION OF SEFA AND FINANCIAL STATEMENTS
Accounting Policies: No funds were identified as having been provided to subrecipients by Baptist Hospitals of Southeast Texas and Subsidiaries and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. Baptist Hospitals of Southeast Texas and Subsidiaries has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: Baptist Hospitals of Southeast Texas and Subsidiaries has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.
The financial statements reflect revenue recognized from the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution of approximately $-0- and $13,837,000 for the years ended June 30, 2023 and 2022, respectively. The SEFA includes PRF and ARP of approximately $2,585,000 that was received in Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.