Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note B.
The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of Hamilton Health Care system, Inc. (the System) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
Title: Note B - Significant Accounting Policies
Accounting Policies: The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note B.
DeMinimis Indirect Cost Rate: The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note C - Contingencies
Accounting Policies: The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note B.
The System's federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures, and affect the System's continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the System expects such amounts, if any, to be immaterial.
Title: Note D - Provider Relief Funds
Accounting Policies: The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note B.
As discussed in the accompanying consolidated financial statements, the System received a significant amount of funding from the Coronavirus Aid, Relief, and Economic Secuirty (CARES) Act Provider Relief Fund (PRF) program. Expenditures under this program are subject to the Uniform Guidance. In accordance with the 2023 Compliance Supplement, PRF amounts that were received during the period July 1, 2021 to June 30, 2022 that were expended by June 30, 2023 are the only amounts included in the accompanying Schedule of Expenditure of Federal Awards.