Notes to SEFA
The following is a summary of significant accounting policies relating to RWJ Barnabas Health, Inc. (the Corporation) Federal grant programs. (a) Basis of Presentation The accompanying supplementary schedule of expenditures of Federal awards (the Schedule) includes the Federal award activity of the Corporation under programs of the Federal government and is presented on the accrual basis of accounting, except for the following grants: • Grants presented on the modified accrual basis of accounting: – Block Grants DMHAS – For Community Mental Health (10106, ALN 93.958) – PATH – DMHAS For Homelessness (10106, ALN 93.150) • Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (CDBG-DR) – Energy Resilience Bank Program (ALN 14.269) is presented based on the reimbursement amount requested and approved by the State of New Jersey. • Housing Opportunities for Persons with AIDS (ALN 14.241) is presented based on the allowable expenditures paid during January 1, 2024 to December 31, 2024. 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the Corporation’s consolidated financial statements. Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated balance sheet, changes in net assets, or cash flows of the Corporation. (b) Indirect Costs The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
On October 30, 2018, the Corporation entered into a Subrecipient New Jersey Energy Resiliency Bank Funding Agreement with the New Jersey Economic Development Authority (the Authority). The Authority has agreed to provide funding for the development of a new combined heat and power system on the campuses of Jersey City Medical Center, Newark Beth Israel Medical Center, RWJ Somerset, Cooperman Barnabas Medical Center, and Trinitas Medical Center (the Hospitals). The maximum project cost is estimated to be $61.5 million, across five hospitals. The funding of this project consists of a pass-through Federal grant portion of $41.5 million and Federal loan proceeds of $20.0 million from the Hurricane Sandy Community Development Block Grant Disaster Recovery Grant (CDBG DR) (ALN 14.269) from the Authority. The funding also consists of loans of $0.6 million from Public Service Enterprise Group, which are neither Federal nor State of New Jersey funded. The total expenditures incurred for the project were $28,331,679 for the year ended December 31, 2024, which are reported on the Schedule. Out of the total expenditures, $11,619,695 is related to the grant portion of the program. The remaining expenditures are funded through the Corporation’s draw down of the Federal loan proceeds of $5,713,363 in the current year in connection with the previously outstanding loans. No repayment was made on the Federal loan for the year ended December 31, 2024. The outstanding loan balance for the CDBG-DR – Energy Resilience Bank Program (ALN 14.269) is $16,711,984 as of December 31, 2024.