Notes to SEFA
Title: Note 1 Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Palomar Health (the District) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (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 the District, it is not intended to and does not present the financial position, results of operations, or cash flow of the District.The Districts reporting entity is defined in Note 1 of the financial statements. All federal awards from federal agencies are included in the Schedule. The Schedule includes the grant income of the District with the Tax Identification Number of 95-6003843 and of Arch Health Partners Inc. (doing business as Palomar Health Medical Group) with the Tax Identification Number of 27-1332228.
Title: Note 3 Provider Relief Fund
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with guidance from the U.S. Department of Health and Human Services (DHHS), the District included the Reporting Period 2 (funds received between July 1, 2020 and December 31, 2020) and Reporting Period 3 (funds received between January 1, 2021 and June 30, 2021) expenditures for Provider Relief Fund Assistance Listing No. 93.498 of $326,878 in the Schedule for the year ended June 30, 2022, to align with DHHS reporting guidelines. In accordance with U.S. GAAP, the total amount of $326,878 of Provider Relief Fund Assistance received by the District was recognized as revenue during the year ended June 30, 2021, and is included in beginning net position as of and for the year ended June 30, 2022.