Notes to SEFA
Title: Provider Relief Fund and American Rescue Plan Rural Distribution
Accounting Policies: Summary of Significant Accounting Policies
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 and
NJOMB 15-08, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Network has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
As it relates to Assistance Listing #93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, the Schedule for the year ended December 31, 2022 includes amounts reported in the Periods 3 and 4 PRF Reports. The terms and conditions of the award allow for reimbursement of lost revenues. For Period 3 and 4, the Network’s methodology for calculating lost revenues was a hybrid approach comparing actual to budgeted net patient service revenue for the year 2020 and the difference between actual and base period (2019) net patient service revenue for the year 2021, which is consistent with HRSA’s revenue loss definitions. See Note 2 in the accompanying consolidated financial statements for a description on how the PRF funds were recorded in accordance with GAAP.
The Schedule includes the following entities that received the PRF program:
Legal Entity Name Tax Identification Number PRF Amount
Included in the Schedule:
Inspira Medical Centers, Inc. 21-0634484 $ 6,334,732
Inspira Health Network Medical Group, P.C. 20-5745047 3,506,115
Inspira Health Network Urgent Care, P.C. 45-2900402 10,991
The Network also received $16 million in Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) for the year ended December 31, 2022. The purpose of the SCLFRF was to provide the Network funding to acquire Salem Medical Center. See Note 1 in the accompanying consolidated financial statements.
Title: Indirect Cost Rate
Accounting Policies: Summary of Significant Accounting Policies
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 and
NJOMB 15-08, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Network has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Network has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 97.036 Disaster Grants, Public Assistance (Presidentially Declared Disasters)s)
Accounting Policies: Summary of Significant Accounting Policies
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 and
NJOMB 15-08, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Network has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Federal Emergency Management Agency (FEMA) requires that FEMA has approved a project and that there have been eligible expenditures incurred for the approved project prior to reporting this program on the Schedule.