Notes to SEFA
Title: Basis of Presentation
Accounting Policies: No funds were identified as having been provided to subrecipients by the Health System and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance.
De Minimis Rate Used: Y
Rate Explanation: The Health System has elected to use the 10% de minimis indirect
cost rate allowable under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Palo Alto County Hospital dba: Palo Alto County Health System (the Health System) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of the
Health System, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Health System.
Title: Reconciliation of SEFA and Financial Statements
Accounting Policies: No funds were identified as having been provided to subrecipients by the Health System and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance.
De Minimis Rate Used: Y
Rate Explanation: The Health System has elected to use the 10% de minimis indirect
cost rate allowable under the Uniform Guidance.
The financial statements reflect revenue recognized from the American Rescue Plan and Provider Relief Fund of approximately $708,394 for the year ended June 30, 2023. The SEFA includes American Rescue Plan and Provider Relief Funds of $918,106 that were received in Period 4 in accordance with the requirements of the compliance supplement for assistance
listing number 93.498. The difference is due to the Health System recognizing $202,686 of revenue related to the American Rescue Plan and Provider Relief Funds in the year ended June 30, 2022, when the funds were utilized as well as $7,026 of interest received on the funds recorded as interest income.