Notes to SEFA
Title: 3. Procurement Provisions
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (SEFA) includes the
federal and state grant activity of Houston Methodist (“Methodist”) and is presented on the
modified cash basis of accounting (see notes 4 and 5).
The information in the SEFA is presented in accordance with the requirements of Title 2 US Code
of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (“Uniform Guidance”), or the Texas Grant
Management Standards (“TxGMS”).
De Minimis Rate Used: N
Rate Explanation: Methodist has negotiated an indirect cost rate with the federal government and, therefore, has not
elected to use the 10% de minimis cost rate as covered in Uniform Guidance at 2 CFR 200.414,
Indirect (F&A) costs.
Methodist has implemented the procurement standards under the Uniform Guidance at 2 CFR 200.
Title: 4. Provider Relief Fund
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (SEFA) includes the
federal and state grant activity of Houston Methodist (“Methodist”) and is presented on the
modified cash basis of accounting (see notes 4 and 5).
The information in the SEFA is presented in accordance with the requirements of Title 2 US Code
of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (“Uniform Guidance”), or the Texas Grant
Management Standards (“TxGMS”).
De Minimis Rate Used: N
Rate Explanation: Methodist has negotiated an indirect cost rate with the federal government and, therefore, has not
elected to use the 10% de minimis cost rate as covered in Uniform Guidance at 2 CFR 200.414,
Indirect (F&A) costs.
Health and Human Services (HHS) has indicated that COVID-19 Provider Relief Funds and
American Rescue Plan ("ARP") Rural Distribution (PRF) funds on the SEFA are to be reported
corresponding to reporting requirements of the HRSA PRF Reporting Portal.
The amount presented on the SEFA for PRF are for funds received by Methodist between January
1, 2022 through June 30, 2022. The amount presented reconciles to the PRF information reported
to HHS as follows: (See Table in Report).
Title: 5. Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (SEFA) includes the
federal and state grant activity of Houston Methodist (“Methodist”) and is presented on the
modified cash basis of accounting (see notes 4 and 5).
The information in the SEFA is presented in accordance with the requirements of Title 2 US Code
of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (“Uniform Guidance”), or the Texas Grant
Management Standards (“TxGMS”).
De Minimis Rate Used: N
Rate Explanation: Methodist has negotiated an indirect cost rate with the federal government and, therefore, has not
elected to use the 10% de minimis cost rate as covered in Uniform Guidance at 2 CFR 200.414,
Indirect (F&A) costs.
In accordance with the guidance from the U.S Department of Homeland Security, the amount
presented on the SEFA for Assistance Listing Number 97.036 - COVID - 19 Disaster Grants-
Public Assistance (Presidentially Declared Disasters), represents expenditures that were incurred
and approved by the Federal Emergency Management Agency (FEMA) for the year ended
December 31, 2023. Houston Methodist reported $23,411,200 in COVID-19 related funding from
FEMA for the year ended December 31, 2023 on the SEFA. Of the $23,411,200 reported on the
SEFA, $22,855,176 was incurred prior to 2023.