Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting with the exception of the amounts presented in relation to the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hospital Development Company (d/b/a Roane General Hospital) (the Hospital) 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 Hospital, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Hospital.
Title: Loan and Loan Guarantee Programs
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting with the exception of the amounts presented in relation to the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate.
The Schedule includes loans and loan guarantees totaling $22,871,124 received or guaranteed by the U.S. Department of Agriculture (USDA) during the year. There were no interest subsidies, cash or administrative cost allowances received during the year ended September 30, 2024. The balance of the loans and loan guarantees as of September 30, 2024, amounted to $22,282,074.
Title: Grants for Capital Acquisitions
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting with the exception of the amounts presented in relation to the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate.
The Schedule includes $237,566 received from the U.S. Department of Health and Human Services in accordance with the Uniform Guidance. Such amounts were recognized as grants for capital acquisitions as a component of net assets with donor restrictions in the Hospital’s financial statements for the year ended September 30, 2024.