Notes to SEFA
Title: COVID-19 Department of Homeland Security Federal Emergency Management Agency (FEMA)
Accounting Policies: The information on the Schedule of Expenditures of Federal Awards (the "Federal Schedule") is reported on the accrual basis of accounting and is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this Federal Schedule may differ from amounts presented in or used in preparation of the basic consolidated financial statements. The purpose of the Federal Schedule is to present a summary of those activities of the Hospital for the year ended December 31, 2024 which have been funded by the federal government. For purposes of the Federal Schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts and loans and loan guarantees. The Hospital does not receive any assistance in the form of loans or loan guarantees.
Direct and indirect costs are charged to awards in accordance with cost principles contained in the Department of Health and Human Services (“DHHS”), U.S. Office of the Assistant Secretary Comptroller (“OASC”), OASC-3, A Guide for Hospitals. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Because the Federal Schedule presents only a selected portion of the activities of the Hospital, it is not intended to, and does not present the consolidated financial position, results of operations, changes in net assets or cash flows of the Hospital. Full Assistance Listing Numbers (“ALN”) and pass-through entity numbers are included when available.
While certain awards on the Federal Schedule have program names identified as award year 2023 and 2025, only expenses incurred during the year ended December 31, 2024 are reported on the Federal Schedule. These awards have grant periods that do not align with the Hospital’s calendar year end.
De Minimis Rate Used: N
Rate Explanation: Indirect costs are recovered at the lower of the rate specified under the grant agreement or the Hospital’s approved indirect cost rate of 55%, rather than the allowed de minimus rate.
For the year ended December 31, 2024, the Hospital recorded $872,289 of claims to FEMA under ALN 97.036. The claims submitted represented incurred eligible operating expenses attributed to the Hospital’s response to COVID-19, which were not only expended, but also approved by the federal and state agencies. The Hospital has additional claims outstanding and under review with FEMA as of December 31, 2024 which will be recognized in the year the related funds are approved by FEMA at the federal and state agencies.