Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on 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 Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Shattuck Hospital Authority d/b/a Newman Memorial Hospital, Inc. (Authority) under programs of the federal government for the year ended December 31, 2021. 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 the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Note 4 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Accounting Policies: Expenditures reported on 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 Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The Authority received amounts from the U.S. Department of Health and Human Services (HHS) through the Assistance Listing/CFDA #93.498) during the years ended December 31, 2021 and 2020, totaling $220,679 and $3,277,920, respectively. The Authority incurred eligible expenditures, including lost revenue, and therefore, recognized revenues totaling $1,847,932 and $556,729 for the years ended December 31, 2021 and 2020, respectively. The Authority recorded a refunding advance totaling $1,093,938 and $2,721,191 as of December 31, 2021 and 2020, respectively. In accordance with the 2021 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 1 and 2, defined as payments received during April 10, 2020 to December 31, 2020 of $3,277,920, plus interest earned of $1,025, as required under the PRF program.
The amount of PRF program expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts than have been reimbursed or are obligated to be reimbursed by other sources, estimating marginal increases in expenses related to coronavirus and the calculation of lost revenue. Actual results could differ from those estimates.