Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of MultiCare Health System (the Company) under programs of the federal government for the year ended December 31, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) as issued by the Office of Management and Budget (OMB). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to, and does not, present the consolidated balance sheet, changes in net assets, or cash flows of the Company.
Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
Greater Lakes Mental Health (GLMH), a behavioral health services provider, is an affiliate of the Company. GLMH has the following loan balance outstanding at December 31, 2024. The commitment period ends twenty (20) years from the date of initial occupancy, which was September 2009. If the terms and conditions of the agreement are met for more than ten (10) years, the percentage of the amount required to be repaid is reduced by ten (10) percentage points for each year in excess of ten (10) years. There is no expectation of repayment that ends twenty (20) years from the date of initial occupancy. This loan outstanding is also included in the federal expenditures presented in the schedule. Federal grantor/pass-through grantor/program title AL number Amount of loan Department of Housing and Urban Development: Passed through Pierce County Housing Program: Continuum of Care Program 14.235 $ 200,000
The Company has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The grants were awarded before the de minimis increase to 15% on October 1, 2024, and not subject to the increased rate. The indirect cost rate on federal programs conforms to the specific federal program contract.
The eligible expenditures reported under Assistance Listing Number 97.036 on the Schedule reflect expenditures incurred in years prior to 2024. The amount of expenditures related to prior years is $39,159,194.