Notes to SEFA
Title: Federal Direct Student Loans
Accounting Policies: The accompanying Schedule of Expenditures of Federal, State, and County Awards (the Schedule) includes the federal, state, and county grant expenditures of UPMC. The Schedule has been prepared on the accrual basis of accounting with the exception of capital expenditures, which are recognized on a cash basis. Expenditures are recorded for program activities in accordance with the terms of the applicable award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
UPMC acts as an intermediary for students receiving Federal Direct Student Loans (Assistance Listing No. 84.268), which includes Direct Loans and Parents Loans for Undergraduate Students from the federal government. The federal government is responsible for billings and collections of the loans. UPMC assists the federal government by processing the applications and applying funds to student accounts from the federal government. Since this program is administered by the federal government, new loans made in the fiscal year ended December 31, 2022, related to Federal Direct Student Loans are considered current year federal expenditures, whereas the outstanding loan balances are not.
Title: COVID-19 Provider Relief Fund (Assistance Listing No. 93.498)
Accounting Policies: The accompanying Schedule of Expenditures of Federal, State, and County Awards (the Schedule) includes the federal, state, and county grant expenditures of UPMC. The Schedule has been prepared on the accrual basis of accounting with the exception of capital expenditures, which are recognized on a cash basis. Expenditures are recorded for program activities in accordance with the terms of the applicable award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Schedule includes $273,243,094 received from the U.S. Department of Health and Human Services (HHS) between January 1, 2021 through December 31, 2021 under the COVID-19 Provider Relief Fund (PRF) Assistance Listing No. 93.498. In accordance with guidance from HHS, these amounts are presented as Period 1 and Period 2 in the HHS PRF Reporting Portal. Such amounts were recognized as other revenue in UPMCs consolidated financial statements in the accompanying consolidated statements of operations and changes in net assets for the years ended December 31, 2022 and 2021. Due to the PRF Reporting Portal requirements, this amount is not the total PRF received and/or recognized by UPMC as other revenues in UPMCs consolidated financial statements for the years ended December 31, 2022 and 2021. The amount presented on the Schedule for PRF is for the fiscal year ended December 31, 2022. See Notes to the SEFA for table.
Title: Childrens Health Insurance Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal, State, and County Awards (the Schedule) includes the federal, state, and county grant expenditures of UPMC. The Schedule has been prepared on the accrual basis of accounting with the exception of capital expenditures, which are recognized on a cash basis. Expenditures are recorded for program activities in accordance with the terms of the applicable award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under Assistance Listing No. 93.767, Childrens Health Insurance Program, UPMC invoiced premiums to the Pennsylvania Department of Human Services for the period of January 1, 2022 December 31, 2022. See Notes to the SEFA for table.