Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activity of the Children’s Health Insurance Program (“Program”) administered by Independent Health Association, Inc. (“IHA”) for the year ended December 31, 2024. A federal award passed through from another governmental agency is included on the Schedule. IHA administers the Program in the Western New York area through a contract with the New York State Department of Health (“NYSDOH”) specifically to determine eligibility for payments for child health assistance.
The accompanying Schedule is presented using the accrual basis of accounting in accordance with accounting standards generally accepted in the United States of America. The amounts reported as federal expenditures were obtained from appropriate financial reports for the applicable program and period. The amount reported in this Schedule is prepared from financial records maintained for the Program. These financial records are reconciled to IHA’s general ledger.
Premium subsidies are received from the NYSDOH for administration of the Program. Of the total NYSDOH premium subsidies received and expended by IHA, 65% of the premium subsidies from January 1, 2024 through December 31, 2024, based upon the enhanced Federal Medical Assistance Percentages, are related to federal awards being passed through from the U.S. Department of Health and Human Services.
Direct expenditures are charged to the Program as incurred. Indirect expenditures are allocated to the Program primarily based on claims volume, direct internal consulting charges and/or membership.
IHA has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance and instead uses the overhead allocation rate provided by specific contracts for the Program.
The preparation of the Schedule in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts during the reporting period and the Schedule’s disclosures. Actual results could differ from those estimates.
IHA Program management has evaluated subsequent events for recognition or disclosure, through September 10, 2025, the date the accompanying financial statements were available to be issued, and determined that no additional recognition or disclosure was necessary.