Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the U.S. Department of Agriculture (USDA) Community Facilities Loans and Grants. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement.
For the awards related to the U.S. Department of Agriculture Community Facilities Loans and Grants the USDA has indicated that the amount of outstanding loans issued under the Community Facilities Loans and Grants must be included in the borrowers Schedule.
De Minimis Rate Used: N
Rate Explanation: The Hospital does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Hospital do not include charges for indirect costs.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Grafton City Hospital (Hospital), a component unit of the City of Grafton, West Virginia, under programs of the federal government for the year ended June 30, 2022. The information in this Schedule 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 position, or cash flows of the Hospital.
Title: U.S. Department of Agriculture Loan
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the U.S. Department of Agriculture (USDA) Community Facilities Loans and Grants. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement.
For the awards related to the U.S. Department of Agriculture Community Facilities Loans and Grants the USDA has indicated that the amount of outstanding loans issued under the Community Facilities Loans and Grants must be included in the borrowers Schedule.
De Minimis Rate Used: N
Rate Explanation: The Hospital does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Hospital do not include charges for indirect costs.
The Schedule includes $3,098,310 received from the USDA. In accordance with guidance from the USDA, these amounts represent $3,098,310 in outstanding loans at the beginning of the audit period (i.e., the June 30, 2021, balance). There were no interest subsidies, cash, administrative cost allowances or new loans made or received during the year ended June 30, 2022 (the audit period covered by the Schedule). The balance of the loan as of June 30, 2022 amounted to $3,006,873.