Notes to SEFA
Accounting Policies: BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Hospital Cottages for Children under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is
presented in accordance with the requirements of 2 CFR 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 Cottages for Children, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of The Hospital Cottages for Children.
SUMMARY OF SIGNIFICANT 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.The Hospital Cottages for Children has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
ENDING LOAN BALANCE
The ending Section 232 loan balance is $3,801,903 at December 31, 2024
De Minimis Rate Used: N
Rate Explanation: The Hospital Cottages for Children has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.