Notes to SEFA
Title: Note 1. 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.
De Minimis Rate Used: N
Rate Explanation: The District did apply the indirect cost rates to its grants.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the DeSoto County Hospital District (the District), under programs of the federal government for the year ended September 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 the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.
Title: Note 2. Summary of Significant Accounting Policies
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.
De Minimis Rate Used: N
Rate Explanation: The District did apply the indirect cost rates to its grants.
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.
Title: Note 3. Indirect Cost Rate
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.
De Minimis Rate Used: N
Rate Explanation: The District did apply the indirect cost rates to its grants.
The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4. Indirect Cost Rate Noncash Assistance, Insurance, Loans and Loan Guarantees Outstanding
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.
De Minimis Rate Used: N
Rate Explanation: The District did apply the indirect cost rates to its grants.
There was a $20,000,000 direct U.S Department of Agriculture (USDA) loan originally issued in June 2006. This loan was issued for the construction and expansion of the District’s hospital facilities. The outstanding amount of the loan is $11,173,618 as of September 30, 2024, and the loan matures in June 2036. In accordance with guidance issued by the USDA, the amount included for the USDA expenditures in the Schedule for the year ended September 30, 2024, is $11,872,823, which represents the balance of the USDA loan as of October 1, 2023 (i.e., beginning of the audit period) plus the value of new loans received during the year ended September 30, 2024, which was zero.