Title: 1) Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the Cafioncito Band of Navajos Health Center, Inc. (CBNHC) and is presented on the modified accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: CBNHC has a negotiated indirect cost rate and, therefore, has elected not to use the 10% de minimis indirect cost rate.
General
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the Cafioncito Band of Navajos Health Center, Inc. (CBNHC) and is presented on the modified accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Other Direct Reimbursements
CBNHC receives direct reimbursement revenue from federal agencies under the Medicare and Medicaid programs, which are not subject to the requirements of Title 2 CFR Part 200 and are not presented in the accompanying Schedule.
Title: 2) Indirect Cost Rate
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the Cafioncito Band of Navajos Health Center, Inc. (CBNHC) and is presented on the modified accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: CBNHC has a negotiated indirect cost rate and, therefore, has elected not to use the 10% de minimis indirect cost rate.
CBNHC has a negotiated indirect cost rate and, therefore, has elected not to use the 10% de minimis indirect cost rate.
Title: 3) Reconciliation to the Financial Statements
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal financial assistance programs of the Cafioncito Band of Navajos Health Center, Inc. (CBNHC) and is presented on the modified accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: CBNHC has a negotiated indirect cost rate and, therefore, has elected not to use the 10% de minimis indirect cost rate.
The following is a reconciliation of the expenditures reported on the Schedule to the total expenses reported in the financial statements:
Total expenditures of federal awards on the Schedule $ 7,638,650
Less: Capital asset purchases included as expenditures on the Schedule (26,891)
Less: Indirect costs for federal programs eliminated against indirect cost recovery in the financial statements (2,089,731)
Add: Lease expenses under Section 105(l) of the Indian Self-Determination and Education Assistance Act (ISDEAA) not included on the Schedule 321,835
Add: Depreciation expense not included on the Schedule 152,035
Add: Indirect cost pool expenses 1,846,099
Add: Expenses covered by nonfederal grant revenue 334,158
Total expenses on the financial statements $ 8,176,155