Title: BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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 Center has not elected to utilize the 10% de minimis rate and has not applied an indirect cost rate to federal awards.
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activity of all financial assistance programs of Deborah Heart and Lung Center (the “Center”). The information in the 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 (“Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included in the Schedule. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: LOANS OUTSTANDING
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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 Center has not elected to utilize the 10% de minimis rate and has not applied an indirect cost rate to federal awards.
In December 2021, the Center was issued and guaranteed loans by the United States Department of Agriculture (“USDA”) under assistance listing #10.766 as follows: 1) an $88,174,000 direct loan by the USDA (the “USDA Loan”); and 2) a $10,277,000 loan by Greater Nevada Credit Union, guaranteed by the USDA (the “Guaranteed Loan”). These loans will underwrite the construction and renovation costs of the “Deborah 100” Expansion Project. The USDA Loan is a 40-year loan with a fixed interest rate of 2.125%. The Guaranteed Loan is a 30-year loan with a fixed interest rate of 4.07%. These loans will close once the certificate of occupancy for the renovations and expansion is issued. Completion of the “Deborah 100” Expansion Project is expected to occur in December 2025. To fund the “Deborah 100” Expansion Project during construction, Greater Commercial Lending, a credit union service organization wholly owned by Greater Nevada Credit Union, has committed to provide the Center with “drawdown” bridge financing, also guaranteed by the USDA, for a period of three years at a fixed rate of 2.89% and requires monthly interest-only payments. The drawdowns on the Greater Commercial Lending bridge financing began on December 16, 2021, and totaled $929,407 during the year ended December 31, 2021, $12,354,976 during the year ended December 31, 2022, and $23,070,709 for a total of $36,355,092 as of December 31, 2023, and is reported as the expenditure amount on the Schedule. The Greater Commercial Lending loan had a balance of $36,355,092 at December 31, 2023.
Title: INDIRECT COST RATE
Accounting Policies: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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 Center has not elected to utilize the 10% de minimis rate and has not applied an indirect cost rate to federal awards.
The Center has not elected to utilize the 10% de minimis rate and has not applied an indirect cost rate to federal awards.