Notes to SEFA
The purpose of the schedule of expenditures of federal awards (the Schedule) is to present those activities of Allina Health System (the System) for the year ended December 31, 2024, which have been financed by the U.S. government. For purposes of the Schedule, federal awards include all federal assistance entered into directly between the System and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The Schedule does not include payments received under Medicare and Medicaid reimbursement programs. Since the Schedule presents only a selected portion of the activities of the System, it is not intended to, and does not, present the consolidated financial position, revenue and expenses, changes in net assets, and cash flows of the System. Expenditures are recognized as incurred using the accrual method of accounting.
Federal awards revenue is reported as other revenue in the consolidated financial statements of the System.
Expenditures for federal programs are subject to 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). Under these cost principles, certain types of expenditures are not allowed or are limited as to reimbursement. Expenditures include a portion of costs associated with general institute activities (facilities and administrative costs or indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended December 31, 2024 were based on provisional rates of 49% negotiated with the System’s oversight federal agency, the U.S. Department of Health and Human Services, and are included as a component of the expenditures in the Schedule. Lower facilities and administrative cost rates were used when specifically stated in respective grant agreements.