Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the costs principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal awards of Englewood Hospital and Subsidiaries (the Hospital) for the year ended
December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the 2023 basic financial statements. Because the Schedule presents only a select portion of the operations of the Hospital, it is not intended to and does not present the financial position, change in net assets and cash flows of the Hospital.
Title: U.S. Department of Housing and Urban Development Mortgage Insurance Program
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the costs principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.
The Hospital's mortgage with Prudential Huntoon Paige Associates, LLC is insured under the provisions of the Federal Housing Agency (FHA) Section 242 Program and Section 241 Program. The mortgage
loan is collateralized by a first lien on substantially all of the Hospital's assets. Principal and interest payments of the Section 242 Program are due through December 1, 2029 with interest at a fixed rate of 2.96% of the unpaid balance until the loan is fully paid. The Section 241 Program mortgage amortization runs for the period April 1, 2016 to March 31, 2041. The U.S. Department of Housing and Urban Development has determined that the mortgage insurance
program is to be considered a federal award for purposes of compliance with Uniform Guidance. The federal loan programs listed subsequently are administered directly by the Hospital and balances and transactions relating to the programs are included in the Hospital's basic financial statements. Loans outstanding at the beginning of the year and loans made during the years are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of December 31, 2023 consist of Federal Assistance Listing Numbers Program Name Outstanding Balance, December 31, 2023, 14.128 Section 242 - Mortgage Insurance for Hospitals Contract 031-13024 $30,968,037; 14.151 Supplemental Loan Insurance_Multifamily Rental Housing Section 241 Insured Mortgages contract number 031-10016 $39,668,443; 14.151 Supplemental Loan Insurance_Multifamily Rental Housing Section 241 Insured Mortgages contract number 231-10016 $15,856,862; 14.151 Supplemental Loan Insurance_Multifamily Rental Housing Section 241 Insured Mortgages contract number 331-10016 $6,284,153; Pursuant to the mortgage loan agreement and related documents, the Hospital is required to maintain certain debt service funds, including a mortgage reserve fund. In addition, the Hospital is required to maintain certain financial ratios and comply with other restrictive covenants.
Title: Disaster Grants - Public Assistance (Presidentially Declared Disasters) - Assistance Listing Number 97.036
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the costs principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.
The Federal Emergency Management Agency (FEMA) requires that FEMA has approved a project worksheet and that there have been eligible expenditures incurred for the approved project prior to reporting this program on the Schedule. In accordance with FEMA's guidance, $1,029,289 of the expenditures reported on the current year Schedule relate to amounts incurred in prior years but obligated during 2023 and reported in the consolidated financial statements of the Hospital for the year ended December 31, 2023 as other revenues.