Notes to SEFA
Title: Amounts Passed Through to Subrecipients
Accounting Policies: Expenditures reported on the SEFA 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. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization did not pass through any federal awards to subrecipients.
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA 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. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
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 (SEFA) for the year ended December 31, 2022 includes the federal grant activity that Fairfield Medical Center & Subsidiaries, (collectively the Organization) received and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of the 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 of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Provider Relief Fund and American Rescue Plan Reporting
Accounting Policies: Expenditures reported on the SEFA 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. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the terms and conditions of the Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution grant under the Coronavirus Aids, Relief, and Economic Security Act, the Organization was required to report the Coronavirus (COVID-19) related expenses and lost revenue to the US Department of Health and Human Services (HHS)/Health Resources and Services Administration (HRSA). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received. The 2022 SEFA includes PRF and ARP of approximately $9,183,580 which was received by the Organization between January 1, 2021 and December 31, 2021, the dates designated by HHS for its third and fourth PRF reporting periods. The Organization recognized $7,290,351 and $9,183,580 as revenue in its 2022 and 2021 consolidated statement of operations and changes in net assets as the terms and conditions of the PRF and ARP grants were satisfied by the Organization. HHS required $9,183,580 to be reported on the 2022 SEFA.
Title: Fair Market Value of Donated Personnel Protective Equipment (Unaudited)
Accounting Policies: Expenditures reported on the SEFA 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. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During 2022, the Organization did not receive donated personnel protective equipment from federal sources.