Notes to SEFA
Title: Basis of Presentation Summary of Significant Accounting Policies Governmental Assistance
Accounting Policies: Reported on the accrual basis of accounting. Expenditures are recognized following the Uniform Guidance cost principles.
De Minimis Rate Used: N
Rate Explanation: Negotiated indirect cost rate was used because of having an indirect cost rate agreement.
(1) Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards summarizes the expenditures of Arkansas Children’s under programs of the federal government for the year ended June 30, 2024. The accompanying Schedule of Expenditures of State of Arkansas Financial Assistance (collectively with the Schedule of Expenditures of Federal Awards, the Schedules) summarizes the expenditures of Arkansas Children’s under programs of the state government for the year ended June 30, 2024. The information in the Schedule of Expenditures of Federal Awards 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 Schedules present only a selected portion of the operations of Arkansas Children’s, they are not intended to, and do not, present the financial position, changes in net assets or cash flows of Arkansas Children’s. For purposes of the Schedules, federal awards include all grants, contracts, and similar agreements entered into directly between Arkansas Children’s and agencies and departments of the federal government and all subawards to Arkansas Children’s by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. (2) Summary of Signifiant Accounting Policies - For the purpose of the Schedules, expenditures of federal and state award programs are reported on the accrual basis of accounting. Federal 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. The 10% de minimis cost rate (as covered in 2 CFR Part 200.414) was not used. Instead a federally negotiated indirect cost rate was used during the year.(3) Governmental Assistance - In addition to amounts listed on the Schedules, Arkansas Children’s reported $542,222,012 of other governmental assistance, in the form of Medicaid reimbursements and Children’s Hospital Graduate Medical Education payments during the fiscal year ended June 30, 2024, which are not subject to the audit requirements as defined in the Uniform Guidance.