Title: 1. Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Presbyterian Healthcare Services and Affiliates (PHS) under programs of the federal government for the year ended December 31, 2024. The information in the SEFA is presented in accordance with the requirements of the provisions 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 SEFA presents only a selected portion of the operations of PHS, it is not intended to and does not present the combined balance sheet, statements of operations, changes in net assets, or cash flows of PHS.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. 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. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the combined financial statements. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Basis of Accounting: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Presbyterian Healthcare Services and Affiliates (PHS) under programs of the federal government for the year ended December 31, 2024. The information in the SEFA is presented in accordance with the requirements of the provisions 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 SEFA presents only a selected portion of the operations of PHS, it is not intended to and does not present the combined balance sheet, statements of operations, changes in net assets, or cash flows of PHS.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. 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. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the combined financial statements. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA.
Title: 2. Indirect Costs
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Presbyterian Healthcare Services and Affiliates (PHS) under programs of the federal government for the year ended December 31, 2024. The information in the SEFA is presented in accordance with the requirements of the provisions 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 SEFA presents only a selected portion of the operations of PHS, it is not intended to and does not present the combined balance sheet, statements of operations, changes in net assets, or cash flows of PHS.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. 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. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the combined financial statements. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
PHS has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3. Nature of Activities
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Presbyterian Healthcare Services and Affiliates (PHS) under programs of the federal government for the year ended December 31, 2024. The information in the SEFA is presented in accordance with the requirements of the provisions 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 SEFA presents only a selected portion of the operations of PHS, it is not intended to and does not present the combined balance sheet, statements of operations, changes in net assets, or cash flows of PHS.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. 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. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the combined financial statements. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
PHS receives grants to cover costs of specified programs. Final determination of eligibility of costs will be made by the grantors. Should any costs be found ineligible, PHS will be responsible for reimbursing the grantors for these amounts.
Additionally, expenditures incurred for various programs may exceed the amounts awarded from the respective federal agency. The amounts reported in the SEFA are limited to the award amounts. Amounts in excess of this amount are paid out of non-federal sources.
Title: 4. Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Presbyterian Healthcare Services and Affiliates (PHS) under programs of the federal government for the year ended December 31, 2024. The information in the SEFA is presented in accordance with the requirements of the provisions 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 SEFA presents only a selected portion of the operations of PHS, it is not intended to and does not present the combined balance sheet, statements of operations, changes in net assets, or cash flows of PHS.
Expenditures reported in the SEFA are reported on the accrual basis of accounting. 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. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the combined financial statements. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
In fiscal year 2024, PHS received approval from the Federal Emergency Management Agency for two projects related to the reimbursement of eligible expenditures of $102,811,944 incurred in previous fiscal years. These previous years’ expenditures are included in the SEFA in the current year in accordance with guidance provided by the U.S. Department of Homeland Security.