Notes to SEFA
Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of the Childrens Health Insurance Program (Program) administered by Independent Health Association, Inc. (IHA) for the year ended December 31, 2022. 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.Basis of Accounting 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 IHAs general ledger.Determination of Federal Expenditures Premium subsidies are received from the NYSDOH for administration of the Program. Of the total NYSDOH premium subsidies received and expended by IHA, 69.34% of the premium subsidies from January 1, 2022 through September 30, 2022 and 65.00% of the premium subsidies from October 1, 2022 through December 31, 2022, 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. Expense Allocation 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.Indirect Costs 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. Management Estimates 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 Schedules disclosures. Actual results could differ from those estimates.Subsequent Events IHA Program management has evaluated subsequent events for recognition or disclosure, through September 13, 2023, the date the accompanying financial statements were available to be issued, and determined that no additional recognition or disclosure was necessary.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.