Title: 2. U.S. Department of Housing and Urban Development Mortgage Insurance Program
Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of Capital Health System, Inc. and Subsidiaries (Capital Health) 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 3). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Capital Health.
For purposes of the Schedules, federal and state awards include any assistance provided by a federal or 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.
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, Capital Health did not make this election and uses a negotiated indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance Provides for a 10% deminimis indirrect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
On April 7, 2009, Capital Health closed on a $755,875,000 mortgage insured under the provisions of the U.S. Department of Housing and Urban Development–Federal Housing Administration Section 242 mortgage insurance program. At December 31, 2023 and January 1, 2023, the outstanding balance of the loan totaled $551,935,273 and $581,855,297, respectively. 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 the Uniform Guidance and is included in the total expenditures on the accompanying schedule of expenditures of federal awards.
Title: 3. Federal Emergency Management Agency: Disaster Grants
Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of Capital Health System, Inc. and Subsidiaries (Capital Health) 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 3). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Capital Health.
For purposes of the Schedules, federal and state awards include any assistance provided by a federal or 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.
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, Capital Health did not make this election and uses a negotiated indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance Provides for a 10% deminimis indirrect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
Capital Health incurred certain expenditures related to the COVID-19 pandemic which are eligible for reimbursement from the U.S. Department of Homeland Security – Federal Emergency Management Agency (FEMA) Disaster Grants – Public Assistance (Presidentially Declared Disasters) (Assistance Listing No. 97.036). Capital Health applied for reimbursement of qualifying expenses under the FEMA program and received $1,500,763 for expenses incurred during calendar years 2020 through 2023. This amount 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.
Title: 4. Federal Direct Student Loans
Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of Capital Health System, Inc. and Subsidiaries (Capital Health) 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 3). Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Capital Health.
For purposes of the Schedules, federal and state awards include any assistance provided by a federal or 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.
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, Capital Health did not make this election and uses a negotiated indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance Provides for a 10% deminimis indirrect cost rate election; however, Capital Health did not make this election and uses a negotiated indirect cost rate.
During the year ended December 31, 2023, Capital Health processed $83,002 in new loans under the Federal Direct Student Loans program (Assistance Listing No. 84.268). Since this program is administered by outside financial institutions, new loans made during the year ended December 31, 2023 relating to this program are considered current period financial expenditures, whereas the outstanding loan balances are not. The new loans made during the year ended December 31, 2023 are reported in the Schedule.