Notes to SEFA
Title: Note 4 - Mortgage Insurance for Hospitals (Federal Financial Assistance Listing #14.128)
Accounting Policies: Note 1 – Basis of Presentation
The accompanying schedule of expenditures of federal awards (schedule) includes the federal award activity of Cambridge Memorial Hospital, Inc. d/b/a Tri Valley Health System (Health System) under programs of the federal government for the year ended April 30, 2025. The information is presented in accordance with 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 Health System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health System.
Note 2 – Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: Note 3 – Indirect Cost Rate
The Health System does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The Health System’s mortgage note payable is guaranteed under the Department of Housing and Urban Development’s Section 242 program. The program guarantees 100% of the outstanding mortgage balance. The balance included on the schedule represents 100% of the loan balance of $11,956,977 as of May 1, 2024. The loan balance at April 30, 2025 is $11,126,324.