Notes to SEFA
Title: 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Community Hospital Association, Inc. and Community Healthcare Foundation, Inc. have elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards activity of Community Hospital Association, Inc. and Community Healthcare Foundation, Inc. under programs of the federal government for the year ended June 30, 2024. 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 Community Hospital Association, Inc. and Community Healthcare Foundation, Inc. it is not intended to and does not present the financial position, changes in net assets or cash flows of Community Hospital Association, Inc. and Community Healthcare Foundation, Inc.
Title: Federal Loan Program
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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: Community Hospital Association, Inc. and Community Healthcare Foundation, Inc. have elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The federal loan program is administered directly by the Organization, and balances and transactions relating to this program are included in the Organization’s combined financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. During the year ended June 30, 2024, the loan outstanding at the beginning of the year was refinanced and the USDA guaranteed portion of the debt was reduced from 90% to 80%. The balance of the loan outstanding at June 30, 2024, issued under the Community Facilities Loans and Grants (assistance listing number 10.766) program, was $7,652,003 of which 80% is guaranteed by the USDA.