Title: Food and Nutrition Awards
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of St. Luke’s-Roosevelt Hospital Center and Affiliates (SLR) for the year ended December 31, 2023 and is presented on the accrual basis of accounting. The information on 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 (the Uniform Guidance). 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 Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of SLR. For purposes of the Schedule, federal awards include any assistance provided by a federal agency either directly or indirectly in the form of grants, contracts, cooperative agreements, direct appropriations, loan and loan guarantees, or other non-cash assistance.
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 awards subject to the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, SLR did not make this election and uses a negotiated indirect cost rate.
During the year ended December 31, 2023, SLR participated in the New York State Department of Health, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) through the receipt and distribution of food instruments. The United States Department of Agriculture has determined that such WIC food instruments are considered “property in lieu of money” and, therefore, should be considered part of the subgrant received by SLR. The total amount reported as federal awards on the Schedule represents the value of food instruments redeemed in the amount of $1,115,200, plus administrative costs of $598,472 for the year ended December 31, 2023. As New York State funds are commingled with federal funds, percentages were applied to determine the total amount of federal funds to be reported above. The federal percentages supplied by the New York State Department of Health were 83.8% for Administrative cost and 100% for Food instruments.
Title: U.S. Department of Housing and Urban Development Mortgage Insurance: Hospitals Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of St. Luke’s-Roosevelt Hospital Center and Affiliates (SLR) for the year ended December 31, 2023 and is presented on the accrual basis of accounting. The information on 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 (the Uniform Guidance). 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 Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of SLR. For purposes of the Schedule, federal awards include any assistance provided by a federal agency either directly or indirectly in the form of grants, contracts, cooperative agreements, direct appropriations, loan and loan guarantees, or other non-cash assistance.
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 awards subject to the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, SLR did not make this election and uses a negotiated indirect cost rate.
SLR has a mortgage insured under the provisions of the U.S. Department of Housing and Urban Development – Federal Housing Administration (FHA) Section 223 Mortgage Insurance Program, pursuant to Section 242 of the National Housing Act. At January 1, 2023 and December 31, 2023, the outstanding balance of the loan totaled approximately $135,455,856 and $119,206,932, 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.
As a condition to insuring the FHA 223 Loan, the FHA requires that SLR maintain a Mortgage Reserve Fund (MRF) whose balance is fully funded at the agreed-upon two full years’ debt service on the FHA 223 Loan. At December 31, 2023, approximately $26.7 million is on deposit in the fund, which represents the required balance. Pursuant to these borrowings, SLR is required to maintain certain financial and nonfinancial covenants. For the years ended December 31, 2023 and 2022, SLR was in compliance with all covenant requirements.