Title: Federal Pass-Through Funds
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Capstone Rural Health Center and is presented on the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ fromamounts presented in or used in the preparation of the basic financial statements.For the purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass through entities.Payments received for goods or services provided as a vendor do not constitute federal awardsfor purposes of the schedule. The Center has obtained Assistance Listing (AL) numbers toensure that all programs have been identified in the schedule. Federal programs with differentAL numbers that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster is separately identified in the SEFAand is the following:Health Center Program Cluster The purpose of the Health Center Program (HCP) clusteris to improve the health of the Nations underserved communities and vulnerable populationsby assuring continued access to comprehensive, culturally competent, quality primary healthcare services. HCP grants support to a variety of community-based and patient-directed publicand private nonprofit organizations that provide primary and preventive health care services tothe Nations underserved.The amounts reflected in the financial reports submitted to the awarding federal and/or passthroughagencies and the schedule may differ. Some of the factors that may account for anydifference include the following:The Centers year end may differ from the programs year end.Accruals recognized in the schedule, because of year end procedures, may not bereported in the program financial reports until the next program reporting period.Fixed asset purchases and the resulting depreciation charges are recognized asproperty and equipment, net in the Centers financial statements and as expenditures inthe program financial reports.This schedule was prepared on the accrual basis of accounting. Expenditures are recognized inthe period in which they are incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center is also the sub-recipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as pass-through are considered to be direct.
Title: Contingencies
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Capstone Rural Health Center and is presented on the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ fromamounts presented in or used in the preparation of the basic financial statements.For the purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass through entities.Payments received for goods or services provided as a vendor do not constitute federal awardsfor purposes of the schedule. The Center has obtained Assistance Listing (AL) numbers toensure that all programs have been identified in the schedule. Federal programs with differentAL numbers that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster is separately identified in the SEFAand is the following:Health Center Program Cluster The purpose of the Health Center Program (HCP) clusteris to improve the health of the Nations underserved communities and vulnerable populationsby assuring continued access to comprehensive, culturally competent, quality primary healthcare services. HCP grants support to a variety of community-based and patient-directed publicand private nonprofit organizations that provide primary and preventive health care services tothe Nations underserved.The amounts reflected in the financial reports submitted to the awarding federal and/or passthroughagencies and the schedule may differ. Some of the factors that may account for anydifference include the following:The Centers year end may differ from the programs year end.Accruals recognized in the schedule, because of year end procedures, may not bereported in the program financial reports until the next program reporting period.Fixed asset purchases and the resulting depreciation charges are recognized asproperty and equipment, net in the Centers financial statements and as expenditures inthe program financial reports.This schedule was prepared on the accrual basis of accounting. Expenditures are recognized inthe period in which they are incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant monies received and disbursed by the Center are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon experience, the Center does not believe that such disallowance, if any, would have a material effect on the financial position of the Center. As of April 30, 2022, there were no questioned costs reported in the Schedule of Findings and Questioned Costs for any federal programs.
Title: Noncash Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Capstone Rural Health Center and is presented on the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ fromamounts presented in or used in the preparation of the basic financial statements.For the purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass through entities.Payments received for goods or services provided as a vendor do not constitute federal awardsfor purposes of the schedule. The Center has obtained Assistance Listing (AL) numbers toensure that all programs have been identified in the schedule. Federal programs with differentAL numbers that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster is separately identified in the SEFAand is the following:Health Center Program Cluster The purpose of the Health Center Program (HCP) clusteris to improve the health of the Nations underserved communities and vulnerable populationsby assuring continued access to comprehensive, culturally competent, quality primary healthcare services. HCP grants support to a variety of community-based and patient-directed publicand private nonprofit organizations that provide primary and preventive health care services tothe Nations underserved.The amounts reflected in the financial reports submitted to the awarding federal and/or passthroughagencies and the schedule may differ. Some of the factors that may account for anydifference include the following:The Centers year end may differ from the programs year end.Accruals recognized in the schedule, because of year end procedures, may not bereported in the program financial reports until the next program reporting period.Fixed asset purchases and the resulting depreciation charges are recognized asproperty and equipment, net in the Centers financial statements and as expenditures inthe program financial reports.This schedule was prepared on the accrual basis of accounting. Expenditures are recognized inthe period in which they are incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center did not receive any federal noncash assistance for the fiscal year ending April 30, 2022.
Title: Subrecipients
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Capstone Rural Health Center and is presented on the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ fromamounts presented in or used in the preparation of the basic financial statements.For the purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass through entities.Payments received for goods or services provided as a vendor do not constitute federal awardsfor purposes of the schedule. The Center has obtained Assistance Listing (AL) numbers toensure that all programs have been identified in the schedule. Federal programs with differentAL numbers that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster is separately identified in the SEFAand is the following:Health Center Program Cluster The purpose of the Health Center Program (HCP) clusteris to improve the health of the Nations underserved communities and vulnerable populationsby assuring continued access to comprehensive, culturally competent, quality primary healthcare services. HCP grants support to a variety of community-based and patient-directed publicand private nonprofit organizations that provide primary and preventive health care services tothe Nations underserved.The amounts reflected in the financial reports submitted to the awarding federal and/or passthroughagencies and the schedule may differ. Some of the factors that may account for anydifference include the following:The Centers year end may differ from the programs year end.Accruals recognized in the schedule, because of year end procedures, may not bereported in the program financial reports until the next program reporting period.Fixed asset purchases and the resulting depreciation charges are recognized asproperty and equipment, net in the Centers financial statements and as expenditures inthe program financial reports.This schedule was prepared on the accrual basis of accounting. Expenditures are recognized inthe period in which they are incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center did not provide federal funds to subrecipients for the fiscal year ending April 30, 2022.
Title: Loans and Loan Agreements
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Capstone Rural Health Center and is presented on the accrual basis of accounting.The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ fromamounts presented in or used in the preparation of the basic financial statements.For the purposes of the schedule, federal awards include all grants, contracts, and similaragreements entered into directly with the federal government and other pass through entities.Payments received for goods or services provided as a vendor do not constitute federal awardsfor purposes of the schedule. The Center has obtained Assistance Listing (AL) numbers toensure that all programs have been identified in the schedule. Federal programs with differentAL numbers that are closely related because they share common compliance requirements aredefined as a cluster by the Uniform Guidance. One cluster is separately identified in the SEFAand is the following:Health Center Program Cluster The purpose of the Health Center Program (HCP) clusteris to improve the health of the Nations underserved communities and vulnerable populationsby assuring continued access to comprehensive, culturally competent, quality primary healthcare services. HCP grants support to a variety of community-based and patient-directed publicand private nonprofit organizations that provide primary and preventive health care services tothe Nations underserved.The amounts reflected in the financial reports submitted to the awarding federal and/or passthroughagencies and the schedule may differ. Some of the factors that may account for anydifference include the following:The Centers year end may differ from the programs year end.Accruals recognized in the schedule, because of year end procedures, may not bereported in the program financial reports until the next program reporting period.Fixed asset purchases and the resulting depreciation charges are recognized asproperty and equipment, net in the Centers financial statements and as expenditures inthe program financial reports.This schedule was prepared on the accrual basis of accounting. Expenditures are recognized inthe period in which they are incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Center had one loan guarantee program with the U.S. Department of Agriculture for the year ending April 30, 2022. The outstanding balance as of April 30, 2022 was $507,062.