Title: Significant Accounting Policies Used in Preparing the Schedule of Expenditures of Federal
Awards
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Mercy Health 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Mercy Health’s reporting entity is defined in Mercy Health’s consolidated financial statements.
De Minimis Rate Used: Both
Rate Explanation: Indirect cost rates for certain Mercy Health entities are based on applicable U.S. Department of Health and Human Services (HHS) negotiated rates or sponsor-specified rates. For Mercy Health entities that do not have a negotiated indirect cost rate with HHS, the 10% de minimis indirect cost rate allowed by the Uniform Guidance is used, as applicable.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Mercy Health 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Mercy Health’s reporting entity is defined in Mercy Health’s consolidated financial statements.
Title: 10% De Minimis Cost Rate
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Mercy Health 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Mercy Health’s reporting entity is defined in Mercy Health’s consolidated financial statements.
De Minimis Rate Used: Both
Rate Explanation: Indirect cost rates for certain Mercy Health entities are based on applicable U.S. Department of Health and Human Services (HHS) negotiated rates or sponsor-specified rates. For Mercy Health entities that do not have a negotiated indirect cost rate with HHS, the 10% de minimis indirect cost rate allowed by the Uniform Guidance is used, as applicable.
Indirect cost rates for certain Mercy Health entities are based on applicable U.S. Department of Health and Human Services (HHS) negotiated rates or sponsor-specified rates. For Mercy Health entities that do not have a negotiated indirect cost rate with HHS, the 10% de minimis indirect cost rate allowed by the Uniform Guidance is used, as applicable.
Title: Federal Direct Loans
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Mercy Health 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Mercy Health’s reporting entity is defined in Mercy Health’s consolidated financial statements.
De Minimis Rate Used: Both
Rate Explanation: Indirect cost rates for certain Mercy Health entities are based on applicable U.S. Department of Health and Human Services (HHS) negotiated rates or sponsor-specified rates. For Mercy Health entities that do not have a negotiated indirect cost rate with HHS, the 10% de minimis indirect cost rate allowed by the Uniform Guidance is used, as applicable.
During the period December 20, 2023 to June 30, 2024, Mercy Health expended $423,812 in Federal Direct Student Loans (Assistance Listing No. 84.268), which includes Direct Stafford Loans and Parent Loans for Undergraduate Students from the federal government. The federal government is responsible for billings and collections of the loans. Mercy Health 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 during the period December 20, 2023 to June 30, 2024, 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 and American Rescue Plan (ARP) Rural Distribution
(Assistance Listing No. 93.498)
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Mercy Health 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Mercy Health’s reporting entity is defined in Mercy Health’s consolidated financial statements.
De Minimis Rate Used: Both
Rate Explanation: Indirect cost rates for certain Mercy Health entities are based on applicable U.S. Department of Health and Human Services (HHS) negotiated rates or sponsor-specified rates. For Mercy Health entities that do not have a negotiated indirect cost rate with HHS, the 10% de minimis indirect cost rate allowed by the Uniform Guidance is used, as applicable.
The Schedule includes $44,462,639 received from HHS between July 1, 2022 and June 30, 2023, under the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program under Assistance Listing No. 93.498. In accordance with guidance from HHS, these amounts were presented as Periods 5 and 6 in the HHS PRF Reporting Portal. Such amounts were recognized as other operating revenue in the Mercy Health consolidated financial statements in the years ended June 30, 2024 and 2023. Due to the PRF reporting requirements, these amounts are not the total PRF received and/or recognized as other operating revenue in the years ended June 30, 2024 and 2023.