Notes to SEFA
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the grant activity of Beebe Medical Center, Inc. and subsidiaries, d/b/a Beebe Healthcare (the “System”), and is presented on the accrual basis of accounting. The information in 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 “Uniform Guidance”. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. The System has elected not to use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the grant activity of Beebe Medical Center, Inc. and subsidiaries, d/b/a Beebe Healthcare (the “System”), and is presented on the accrual basis of accounting. The information in 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 “Uniform Guidance”. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. The System has elected not to use the 10% de minimis cost rate.
The System receives payments from the federal and state government on behalf of Medicare and Medicaid eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance.
Title: NOTE B - RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the grant activity of Beebe Medical Center, Inc. and subsidiaries, d/b/a Beebe Healthcare (the “System”), and is presented on the accrual basis of accounting. The information in 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 “Uniform Guidance”. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. The System has elected not to use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in federal financial reports do not necessarily agree with the amounts reported in the accompanying Schedule which is prepared on the accrual basis of accounting.