Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Valle del Sol Community Health has elected to use 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule), includes the federal award activity of Valle del Sol, Inc. and Subsidiaries under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of 2 CFR 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 Valle del Sol, Inc. and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Valle del Sol, Inc. and Subsidiaries.
Title: Block Grants for Prevention and Treatment of Substance Abuse
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Valle del Sol Community Health has elected to use 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Block Grants passed through Mercy Maricopa Integrated Healthcare are reported on the consolidated schedules of expenditures of federal awards based on the agreed to percentage of encounter value for the services provided and not based on the expenditures incurred.
Title: Provider Relief Funds
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Valle del Sol Community Health has elected to use 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The financial statements reflect revenue recognized form the Provider Relief Funds of $-0- for the year ended June 30, 2023. The Schedule includes Provider Relief Funds of $120,787 that were received in Period 2 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.