Notes to SEFA
Title: U.S. Department of Housing and Urban Development Mortgage Insurance Program
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal awards of Englewood Hospital and Subsidiaries (the Hospital) for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the 2022 basic financial statements. Because the Schedule presents only a select portion of the operations of the Hospital, it is not intended to and does not present the financial position, change in net assets and cash flows of the Hospital.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.
The Hospital's mortgage with Prudential Huntoon Paige Associates, LLC is insured under the provisions of the Federal Housing Agency (FHA) Section 242 Program and Section 241 Program. The mortgage loan is collateralized by a first lien on substantially all of the Hospital's assets. Principal and interest payments of the Section 242 Program are due through December 1, 2029 with interest at a fixed rate of 2.96% of the unpaid balance until the loan is fully paid. The Section 241 Program mortgage amortization runs for the period April 1, 2016 to March 31, 2041. The U.S. Department of Housing and Urban Development has determined that the mortgage insurance program is to be considered a federal award for purposes of compliance with Uniform Guidance.The federal loan programs listed subsequently are administered directly by the Hospital and balances and transactions relating to the programs are included in the Hospital's basic financial statements. Loans outstanding at the beginning of the year and loans made during the years are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of December 31, 2022 consist of:Federal Assistance Listing NumberProgram NameOutstanding Balance, December 31, 202214.128Section 242 - Mortgage Insurance for HospitalsContract 031-13024$35,616,09414.151FHA Insured Rental Housing Supplemental Loans - 241(a) Contract 031-1001641,462,54614.151FHA Insured Rental Housing Supplemental Loans - 241(a) Contract 231-1001616,574,02814.151FHA Insured Rental Housing Supplemental Loans - 241(a)Contract 331-100166,568,370Pursuant to the mortgage loan agreement and related documents, the Hospital is required to maintain certain debt service funds, including a mortgage reserve fund. In addition, the Hospital is required to maintain certain financial ratios and comply with other restrictive covenants.
Title: Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal awards of Englewood Hospital and Subsidiaries (the Hospital) for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the 2022 basic financial statements. Because the Schedule presents only a select portion of the operations of the Hospital, it is not intended to and does not present the financial position, change in net assets and cash flows of the Hospital.
De Minimis Rate Used: N
Rate Explanation: The Hospital has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the costs principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.