Notes to SEFA
Title: Basis of Presentation
Accounting Policies: 2 CFR 200.510(b)(6)
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Henry Mayo Newhall Hospital and Subsidiaries (the Organization) under programs of the
federal government for the year ended September 30, 2023. 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 the
Hospital, it is not intended to and does not present the financial position, changes in net assets or cash
flows of the Organization.
The Schedule includes expenditures of the Organization for the U.S. Department of Health and Human
services (HHS) Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program that
was appropriated through legislation in response to the COVID-19 pandemic.
Title: Summary of Significant Accounting Policies
Accounting Policies: 2 CFR 200.510(b)(6)
De Minimis Rate Used: N
Rate Explanation: N/A
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. The terms and
conditions of the award allow for reimbursement of lost revenues, which were calculated using the base
period for calculation method.
Title: Indirect Cost Rate
Accounting Policies: 2 CFR 200.510(b)(6)
De Minimis Rate Used: N
Rate Explanation: N/A
The Organization has not elected to use the 10% de minimis indirect cost rate.
Title: Provider Relief Funding and American Rescue Plan (ARP) Rural Distribution
Accounting Policies: 2 CFR 200.510(b)(6)
De Minimis Rate Used: N
Rate Explanation: N/A
For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural
Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding
to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting
Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based
upon the date each payment from the PRF was received. Each Period has a specified Period of
Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after
each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule
includes $952,284 received from HHS between July 1, 2021 and December 31, 2021. In accordance with
the guidance from HHS, the Schedule includes expenditures for the period of availability which ended in
the year ended September 30, 2023 (i.e., Period 4 (January 1, 2020 - December 31, 2022)). The
Schedule includes the following entities that received the Provider Relief Fund and American Rescue
Plan (ARP) Rural Distribution program: Henry Mayo Newhall Memorial Hospital with tax identification number of 95-2821104.