Title: 1.Summary of Significant Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
Title: 2.Indirect Costs
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
Title: 3. Subrecipients
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS did not pass through any federal funds to subrecipients for the year ended June 30, 2024, and thus this information is not applicable to the Schedule.
Title: 4.Federal Emergency Management Agency
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS applied for reimbursement of certain expenses related to the COVID-19 pandemic
under Assistance Listing #97.036, FEMA Public Assistance through the California Governor’s
Office of Emergency Services. Expenditures are reflected in the Schedule in the year in which a
project application is obligated and expenses have been incurred. The Schedule therefore includes
federal assistance totaling $8,832,672 related to projects obligated in fiscal year 2024 that included
expenditures incurred in fiscal year 2020. Those expenses incurred in 2020 represent a reconciling item between the federal expenses in MHS’ financial statements and the amount included on the Schedule.
Title: 5. Advanced Funding
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) is presented on the accrual basis of accounting. The purpose of this Schedule is to present a summary of those activities of Memorial Health Services and Subsidiaries (“MHS”) for the year ended June 30, 2024. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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). Because the Schedule presents only a selected portion of the operations of MHS, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of MHS.
De Minimis Rate Used: N
Rate Explanation: MHS uses indirect costs rates negotiated with funding organizations rather than the 10% de minimis rate as described in Section 200.414 of the Uniform Guidance.
MHS has one award under the advance funding method (93.889) for which cash is held in a restricted account and valid expenditures within the scope of the award are applied against the advanced funds. MHS tracks interest income and remits the income back to the Department of Health and Human Services Division of Payment Management on an annual basis. This award is a calendar year based grant, and expenditures are required to be incurred by calendar year end. The award agreement permits a 15% carryover of funds into the next calendar year, which are required to be expended within a 90 day period. At December 31, 2023, MHS had $9,000 in carryover balance and spent the funds by February 2024 within the 90 day window.