Notes to SEFA
Title: 2. COVID-19 – Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Accounting Policies: The accompanying Schedules of Expenditures of Federal and State awards (the Schedules) include the federal and state grant activity of CentraState Healthcare System, Inc. (the System) for the year ended December 31, 2023, recorded on the accrual basis of accounting. The information in the Schedules 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) and New Jersey OMB Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular Letter 15-08-OMB). In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 2). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the System’s consolidated financial statements.
For purposes of the Schedules, federal and state awards include any assistance provided by a federal and state agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans and loan guarantees, or other non-cash assistance. Federally funded amounts that are passed through state agencies are included on the schedule of expenditures of federal awards and are excluded from the schedule of expenditures of state awards.
De Minimis Rate Used: N
Rate Explanation: Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for Uniform Guidance awards. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, the System did not make this election and uses a negotiated indirect cost rate.
The System incurred certain expenditures related to the Coronavirus Disease 2019 (COVID-19) pandemic which are eligible for reimbursement from the Federal Emergency Management Agency (FEMA) Disaster Grants – Public Assistance (Presidentially Declared Disasters) (Assistance Listing No. 97.036). The System has applied for and received approval from FEMA in 2023 for reimbursement of qualifying expenses totaling approximately $15,899,000, including approximately $15,205,000 of expenditures that were incurred in previous periods. The total amount approved in 2023 has been included in the accompanying schedule of expenditures of federal awards for the year ended December 31, 2023 in accordance with the guidance specific to Assistance Listing No. 97.036. Additional costs have been submitted to FEMA and are pending final approval for reimbursement.