Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of St. John's Lutheran Hospital, Inc. dba Cabinet Peaks Medical Center (Hospital) under programs of the federal government for the year ended March 31, 2024. The information 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.
Title: Note 2 - Significant Accounting Policies
Accounting Policies: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Expenditures reported in 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 allowable or are limited as to reimbursement. No federal assistance has been provided to a subrecipient.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Title: Note 4 - Section 242 - Mortgage Insurance for Hospitals
Accounting Policies: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
De Minimis Rate Used: N
Rate Explanation: The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
The Hospital's 3.58% mortgage note payable is guaranteed under the U.S. Department of Housing and Urban Development's Section 242 Program. The balance included on the Schedule represents 100% of the note payable balance as of March 31, 2023, plus any additional borrowings under the note payable agreements during fiscal year 2024. The outstanding balance as of March 31, 2024, was $19,303,189.