Notes to SEFA
Title: Federal Emergency Management Agency (“FEMA”) Public Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant
activity of Southcoast Health System, Inc. and its subsidiaries (the “System”) 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 System, it is
not intended to and does not present the financial position, results of operations and changes in net assets
or cash flows of the System.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Amounts reported
on the Schedule include replacement of lost revenue and eligible expenditures. 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 when available.
De Minimis Rate Used: N
Rate Explanation: For purposes of charging indirect costs to federal awards, the System has not elected to use the 10 percent
de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
The System applied for reimbursement of certain expenses related to the COVID-19 pandemic under
Assistance Listing Number 97.036, FEMA Public Assistance through the Commonwealth of Massachusetts.
Expenditures are reflected in the Schedule in the year in which a project application is obligated. The
Schedule thus includes $25,320,460 of expenditures incurred in fiscal years 2021 through 2023, which
were obligated in fiscal year 2024 and represents a reconciling item between the federal expenses in the
System’s financial statements and the amount included on the Schedule.