Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Keystone Rural Health Center is currently using an internally developed method to allocateindirect costs as allowed under the Uniform Guidance and does not use the 10% de Minimisindirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Keystone Rural Health Center under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Keystone Rural Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Keystone Rural Health Center. Pass-through entity identifying numbersare presented where available. COVID-19, American Rescue Plan Provider Relief funds are reported based on Provider Relief reporting requirements and represent funds received and spent for the year ended December 31, 2021, in accordance with Provider Relief reporting guidelines.
Title: RECONCILIATION OF SEFA TO FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Keystone Rural Health Center is currently using an internally developed method to allocateindirect costs as allowed under the Uniform Guidance and does not use the 10% de Minimisindirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Following is a reconciliation of the total expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (SEFA) and federal grants reported on the statements of operations and changes in net assets: Total expenditures of federal awards from the SEFA $ 14,701,008, Provider Relief Funds recognized in 2021 (2,797,595), Federal grants from the statements of operations and changes in net assets $ 11,903,413. Provider relief funds recognized during the year ended December 31, 2021 are included in the SEFA for the year ended December 31, 2022, based on guidance provided by the U.S. Department of Health and Human Services. The Center received and spent these funds during the year ended December 31, 2021, and the funds were recorded as federal grant revenue within the financial statements for the year ended December 31, 2021.