Notes to SEFA
Title: Basis of Accounting and Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Y
Rate Explanation: The Home has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance as the Home has never negotiated an indirect cost rate with the funding source; however, the Home has no indirect costs.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Passavant Memorial Homes VII (the Home), Project No. 033-HD102 under programs of the federal government for the year ended June 30, 2024. 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). Because the Schedule presents only a selected portion of the operations of the Home, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Home.
Title: Section 811 Capital Advance
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Y
Rate Explanation: The Home has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance as the Home has never negotiated an indirect cost rate with the funding source; however, the Home has no indirect costs.
The Home has a Capital Advance outstanding as of June 30, 2024. This Capital Advance program is included in the federal expenditures presented in the Schedule. The amount of federal expenditures represents the outstanding principal balance as of July 1, 2023, which is also the Capital Advance balance as of June 30, 2024.