Notes to SEFA
Title: Note 1: Hospital
Accounting Policies: Note 3: Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Note 5: Indirect Cost
The Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Helen Newberry Joy Hospital (the “Hospital”) is located in Newberry, Michigan, and provides inpatient, outpatient, and long-term care services primarily to the citizens of Luce County, Michigan. The Hospital is a governmental corporation established in accordance with Public Act 230 (County Health Facilities Corporation Act) of the State of Michigan Statutes of 1987 and is a component unit of Luce County.
Title: Note 2: Basis of Presentation
Accounting Policies: Note 3: Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Note 5: Indirect Cost
The Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of the Hospital. The information in this Schedule 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.
Title: Note 4: Subrecipients
Accounting Policies: Note 3: Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Note 5: Indirect Cost
The Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Hospital passed no federal awards through to subrecipients.
Title: Note 6: Balance of Outstanding Loan
Accounting Policies: Note 3: Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Note 5: Indirect Cost
The Hospital has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
On December 14, 2022, the Hospital signed a $3,000,000 note payable with the United States Department of Agriculture (“USDA”) for the construction of the Curtis and Eckerman clinics. The proceeds of the USDA note payable were received by the Hospital on January 3, 2023. Prior to receipt of the USDA funds, the clinics’ construction was funded by interim financing obtained from a local bank. The balance of the interim financing loan was $3,000,000 as of December 31, 2022. The loan balance at the beginning of the year was included in the federal expenditures presented in the Schedule.
The Hospital’s balance of the USDA loan as of December 31, 2023, was $2,915,175. There were no new loans received during the year ended December 31, 2023.