Title: Note 1 Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Shattuck Hospital Authority d/b/a Newman Memorial Hospital, Inc. (Authority) under programs of the federal government for the year ended December 31, 2022. The information 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 the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Note 4 Loan Programs
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Expenses reported on the Schedule of Expenditures of Federal Awards consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The Authority has four separate
loan balances which comprise the total expenditures reported on the Schedule of Expenditures of Federal Awards. Amounts reported on the Schedule of Expenditures of Federal Awards includes three different construction loans and a mortgage loan. The outstanding balance of the construction loans and mortgage loan at December 31, 2022, totaled $3,831,209 and $507,560, respectively.
Title: Note 5 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The Authority received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial
Assistance Listing #93.498) during the years ended December 31, 2021 and 2020. The Authority incurred eligible expenditures, including lost revenue, and therefore, recognized revenues totaling $245,534 and
$1,847,932 for the years ended December 31, 2022 and 2021, respectively. The Authority recorded a refundable advance totaling $848,404 and $1,093,938 as of December 31, 2022 and 2021, respectively. In accordance with the 2022 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Periods 3 and 4, defined as payments received from January 1, 2021 to December 31, 2021, of $245,388, plus interest earned of $460, as required under the PRF program.