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 expenditures associated with the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) and the expenditures associated with Disaster Grants - Public Assistance (Presidentially Declared Disasters). 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. PRF expenditures are reported based upon the timing of reporting periods in accordance with guidance provided by the Health Resources and Services Administration. Expenditures related to disaster grants are reported when the System has expended the necessary funds and the Federal Emergency Management Agency (FEMA) has approved the expenditures for reimbursement. Expenditures on the Schedule that occurred prior to the reporting period and approved by FEMA during the reporting period were $1,864,146.
De Minimis Rate Used: Y
Rate Explanation: VHS has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance on assistance listing numbers 93.665 COVID-19 - Emergency Grants to Address Mental and Substance Use Disorders During COVID-19, 93.697 COVID-19 Testing and Mitigation for Rural Health Clinics, and 93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement.
The accompanying schedule of expenditures of federal (the Schedule) includes the federal award activity of the Valley Health System and Subsidiaries (VHS) under programs of the federal government for the year ended December 31, 2022. 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 VHS, it is not intended to and does not present the financial position, changes in net position or cash flows of the VHS.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) and the expenditures associated with Disaster Grants - Public Assistance (Presidentially Declared Disasters). 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. PRF expenditures are reported based upon the timing of reporting periods in accordance with guidance provided by the Health Resources and Services Administration. Expenditures related to disaster grants are reported when the System has expended the necessary funds and the Federal Emergency Management Agency (FEMA) has approved the expenditures for reimbursement. Expenditures on the Schedule that occurred prior to the reporting period and approved by FEMA during the reporting period were $1,864,146.
De Minimis Rate Used: Y
Rate Explanation: VHS has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance on assistance listing numbers 93.665 COVID-19 - Emergency Grants to Address Mental and Substance Use Disorders During COVID-19, 93.697 COVID-19 Testing and Mitigation for Rural Health Clinics, and 93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement.
For the HHS award related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to "Payment Received Periods" (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $16,280,335 received from HHS between January 1, 2021 through December 31, 2021. In accordance with guidance from HHS, $148,337 and $16,131,998 were presented as Period 3 and Period 4, respectively. Such amounts were recognized as Provider Relief Funds revenue in VHS's consolidated financial statements in the year ended December 31, 2021. The Schedule includes the following entities that received the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program:Legal Entity NameTax Identification NumberHampshire Memorial Hospital, Inc.208241398Valley Health System521357729Warren Memorial Hospital540488103Winchester Medical Center540505979War Memorial Hospital, Inc.800407200Valley Regional Enterprises, Inc.541456064Valley Physician Enterprises, Inc.262767279Shenandoah Memorial Hospital540490687Page Memorial Hospital540551200Northern WV Home Health, LLC113779341