The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Ellis Hospital (d/b/a Ellis Medicine) and Subsidiaries (collectively Ellis Medicine) and is presented on the accrual basis of accounting. 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). For the purposes of the schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, direct appropriations, loans and loan guarantees, and other noncash assistance. Because the schedule presents only a select portion of the activities of Ellis Medicine, it is not intended to, and does not present the consolidated financial position, statement of operations and changes in net assets or cash flows of Ellis Medicine.
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. Ellis Medicine’s policy is not to charge federal programs with indirect costs.
Under the Federal Direct Student Loan Program including subsidized and unsubsidized Student Loans and Parents’ Loans for Undergraduate Students, Ellis Medicine processes student loan applications for the Federal government. The amount of loans issued for Ellis Medicine students and parents for the year ended December 31, 2024 was approximately $215,000. With respect to the Federal Direct Student Loans, Ellis Medicine is only responsible for the performance of certain administrative duties; therefore, Ellis Medicine’s consolidated financial statements do not include any amounts relative to these loans.
Ellis Medicine’s debt service payments for certain loan agreements are insured by the U.S. Department of Housing and Urban Development (HUD) under Section 242 of the National Housing Act, as described in note 8 to the consolidated financial statements. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Net debt service payments for the year ended December 31, 2024 totalled $3,458,866. The balance of the loans outstanding at December 31, 2024 consists of: Outstanding balance Federal Assistance Listing Number Program Name at December 31, 2024 14.128 Section 242 HUD-insured loans $57,171,277
Ellis Medicine provided no federal awards to subrecipients for the year ended December 31, 2024.
Ellis Medicine has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Ellis Medicine was obligated and received amounts from DHS through the Disaster Grants - Public Assistance (Presidentially Declared Disasters) program (Federal Financial Assistance Listing No. 97.036) during the year ended December 31, 2024 totalling $2,265,673. Ellis Medicine incurred eligible expenses and, therefore, recognized revenue totalling $2,265,673 for the year ended December 31, 2024 in the consolidated financial statements. Additionally, Ellis Medicine was obligated an additional $9,196,980 in 2024 that was not received or recognized until 2025. In accordance with the 2024 compliance supplement, the program’s expenditures recognized on the schedule are based on the reporting of expenses incurred from March 20, 2020 to June 30, 2022 which were obligated by DHS during 2024, as required under the compliance supplement.