Title: Note A - Basis of Presentation
Accounting Policies: Note A - Basis of Presentation - The accompnaying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance includes the federal and state a ward activity of Covenant and subsidiaries and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirmeents, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therfore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Note B - DeMinimis Indirect Cost Rate: Covenant has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note C - Covenant's federal and state 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 Covenant'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. Covenant believes such amounts, if any, to be immaterial.
Note D - Provider Relief Funds - As discussed in Note O to the accompanying consolidated financial statements, Covenant received a significant amount of funding from the coronavirus Aid, Relief, and Economic Security 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 received during the period January 1 - June 30, 2022 that were used by June 30, 2023 are included in the accompanying schedule of expenditures of federal awards. Accordingly, amounts received prior to January 1, 2022 have not been included in the accompanying schedule of expenditures of federal awards.
De Minimis Rate Used: N
Rate Explanation: De Minimis Indirect cost Rate: Covenant has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance includes the federal and state award activity of Covenant subsidiaries and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Note B - Significant Accounting Policies
Accounting Policies: Note A - Basis of Presentation - The accompnaying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance includes the federal and state a ward activity of Covenant and subsidiaries and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirmeents, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therfore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Note B - DeMinimis Indirect Cost Rate: Covenant has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note C - Covenant's federal and state 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 Covenant'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. Covenant believes such amounts, if any, to be immaterial.
Note D - Provider Relief Funds - As discussed in Note O to the accompanying consolidated financial statements, Covenant received a significant amount of funding from the coronavirus Aid, Relief, and Economic Security 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 received during the period January 1 - June 30, 2022 that were used by June 30, 2023 are included in the accompanying schedule of expenditures of federal awards. Accordingly, amounts received prior to January 1, 2022 have not been included in the accompanying schedule of expenditures of federal awards.
De Minimis Rate Used: N
Rate Explanation: De Minimis Indirect cost Rate: Covenant has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
De Minimis Indirect cost Rate: Covenant has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Title: Note C - Contengencies
Accounting Policies: Note A - Basis of Presentation - The accompnaying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance includes the federal and state a ward activity of Covenant and subsidiaries and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirmeents, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therfore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Note B - DeMinimis Indirect Cost Rate: Covenant has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note C - Covenant's federal and state 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 Covenant'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. Covenant believes such amounts, if any, to be immaterial.
Note D - Provider Relief Funds - As discussed in Note O to the accompanying consolidated financial statements, Covenant received a significant amount of funding from the coronavirus Aid, Relief, and Economic Security 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 received during the period January 1 - June 30, 2022 that were used by June 30, 2023 are included in the accompanying schedule of expenditures of federal awards. Accordingly, amounts received prior to January 1, 2022 have not been included in the accompanying schedule of expenditures of federal awards.
De Minimis Rate Used: N
Rate Explanation: De Minimis Indirect cost Rate: Covenant has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Covenant's federal and state 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 Covenant'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. Covenant believes such amounts, if any, to be immaterial.
Title: Note D - Provider Relief Funds
Accounting Policies: Note A - Basis of Presentation - The accompnaying schedule of expenditures of federal awards and schedule of expenditures of state financial assistance includes the federal and state a ward activity of Covenant and subsidiaries and are presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation (CFR) Part 200, Uniform Administrative Requirmeents, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therfore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Note B - DeMinimis Indirect Cost Rate: Covenant has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note C - Covenant's federal and state 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 Covenant'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. Covenant believes such amounts, if any, to be immaterial.
Note D - Provider Relief Funds - As discussed in Note O to the accompanying consolidated financial statements, Covenant received a significant amount of funding from the coronavirus Aid, Relief, and Economic Security 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 received during the period January 1 - June 30, 2022 that were used by June 30, 2023 are included in the accompanying schedule of expenditures of federal awards. Accordingly, amounts received prior to January 1, 2022 have not been included in the accompanying schedule of expenditures of federal awards.
De Minimis Rate Used: N
Rate Explanation: De Minimis Indirect cost Rate: Covenant has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
As discussed in Note O to the accompanying consolidated financial statements, Covenant received a significant amount of funding from the Coronavirus Aid, Relief, and Economic Security 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 received during the period January 1 - June 30, 2022 that were used by June 30, 2023 are included in the accmpanying schedule of expenditures of federal awards. Accordingly, amounts received prior to January 1, 2022 have not been included in the accompanying schedule of expenditures of federal awards.