The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Albany Med Health System (the System) under programs of the federal government for the year separate audit in compliance with the Uniform Guidance. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of the System, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the System.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Indirect costs are charged to federal grants and contracts at a federally approved predeterminedrate. The predetermined rates for the year ended December 31, 2024 were 63.5% and 26% for on-campus programs and off-campus programs, respectively. Indirect costs are included in the reported federal expenditures.
(a) Federal Student Loan ProgramsThe federal student loan programs listed below are administered directly by the System, and balancesand transactions relating to these programs are included in the System’s combined financialstatements. Loans outstanding at the beginning of the year and loans made during the year areincluded in the federal expenditures presented in the Schedule. No federally reimbursed administrativecosts were incurred by the College.(1) Federal Perkins Loan ProgramFor the years ended December 31, 2024, the College made no loans under the Federal PerkinsLoan Program (Assistance Listing Number (ALN) 84.038). The outstanding balance of loans underthe Federal Perkins Loan Program was $288,232 at December 31, 2024.(2) Health Professions Student and Primary Care Loan ProgramFor the year ended December 31, 2024, the College disbursed $223,138 in new loans under theHealth Professions Student and Primary Care Loan Programs (ALN 93.342). The outstandingbalance of loans under the Health Professions Student and Primary Care Loan Programs was$947,852 at December 31, 2024.(3) Loans for Disadvantaged Students ProgramFor the year ended December 31, 2024, the College made no new loans under the Loans forDisadvantaged Students Program (ALN 93.342). The outstanding balance of loans under theLoans for Disadvantaged Students Program was $602,893 at December 31, 2024.(b) Federal Student Loan Guarantee ProgramThe College offers student financial assistance through the Federal Direct Student Loan Programunder a program with the U.S. Department of Education (ALN 84.268), which is a student loanguarantee program. The College is only responsible for the performance of certain administrativeduties relating to this program. The loans processed and guaranteed under this program during theyear ended December 31, 2024 and included in the federal expenditures presented in the Schedulewere $38,147,622.
Albany Medical Center Hospital (AMCH) has the following long-term debt obligations outstanding as ofDecember 31, 2024 which are insured against loss on mortgages to the lenders by the U.S. Department ofHousing and Urban Development:Federal Loan LoanAssistance Original balance at balance atListing insured loan December 31, December 31,Program title Number amount 2023 Additions Payments 2024Mortgage InsuranceHospitals-RefinanceLoan 14.128 $ 9,584,200 3,709,554 — 616,418 3,093,136Mortgage InsuranceHospitals-2010Mortgage Loan 14.128 311,856,000 199,075,936 — 8,673,789 190,402,147Mortgage InsuranceHospitals-2017Mortgage Loan 14.128 65,000,000 57,323,698 — 1,823,262 55,500,436In April 2017, AMCH closed on a $65,000,000 FHA insured construction loan (2017 Mortgage Loan) tofinance the costs to construct a new Pediatric Emergency Department building and complete otherrenovations within the AMCH complex to increase patient care capacity. The 2017 Mortgage Loan isinsured under the FHA-241 Program, with Prudential Huntoon Paige as the lender. It is secured by a lienon substantially all of AMCH’s property, equipment, and gross receipts. The loan has a fixed interest rate of4.26%, had an interest only 23 month construction period. Principal payments commenced in April 2019based on a 25 year schedule and the loan matures on March 1, 2044. Construction began in the spring of2017 and was completed mid 2020.In December 2010, AMCH closed on a $321,440,200 Mortgage Loan (2010 Mortgage Loan) which wascomprised of a “Refinance Loan” of $9,584,200 and a “Patient Tower” Loan of $311,856,000 (which wasreduced by $50,220,000 to $261,636,000 at Final Endorsement). The 2010 Mortgage Loan is insuredunder the FHA-241 program, with Prudential Huntoon Paige Associates as the lender.The 2010 Mortgage Loan is currently secured by a first lien mortgage on substantially all of AMCH’sproperty, equipment, and gross receipts, and a first mortgage lien on the South Clinical Campus of AMCH.The Refinance Loan was used to retire the Series 1999 Bonds, the original purpose of which was toacquire properties and rights of the former Child’s Hospital and Samaritan Service Corporation. Theinterest rate is 4.66% on the Refinance Loan and is payable through May 1, 2029.The Patient Tower Loan was used to finance AMCH’s expansion project consisting of a six-story patienttower, which contains 96 new beds, 20 new operating rooms and a co-generation plant. Final endorsementoccurred in September 2014 in the amount of $261,636,055. The Patient Tower Loan has an interest rateof 6.2% and a maturity date of July 2038.Loan balances outstanding at the beginning of the year plus new loans made during the year are includedin the federal expenditures presented in the Schedule.
Included in the Special Supplemental Nutrition Program for Women, Infants, and Children expenditures (ALN 10.557) is $2,162,572 of noncash assistance, which is the value of checks redeemed and electronic year.