Notes to SEFA
Title: Loan Programs
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of Southwest Healthcare Services (Southwest) under programs of the federal government for the year ended
December 31, 2023. The information 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
Southwest, it is not intended to and does not present the financial position, changes in net assets, or cash flows
of Southwest.
Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has
been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de
minimus cost rate.
Expenditures reported in this schedule consist of the beginning of the year outstanding loan balances of
Southwest’s USDA direct loans of $13,464,563. If applicable, advances made on the loans during the year are
reported on the schedule. Southwest made no advances on the loans during the year ended December 31, 2023.
Southwest’s outstanding loan balances for the direct loans as of December 31, 2023 are $13,143,819.