Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant award activity of Nemaha Valley Community Hospital (the Hospital) under programs of the federal government, for the year ended June 30, 2025. 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). Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.
Expenditures 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 allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
The Hospital has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital's federal expenditures do not include indirect administrative expenses.
The City of Seneca issued Hospital Revenue Bonds to cover the cost and expenses necessary to acquire real property and pay costs of fees and expenses of construction and improvements to the Hospital. After the construction and improvement projects to the Hospital are completed, the Hospital plans on redeeming a portion of the Series 2023 Hospital Revenue Bonds issued with the proceeds of a USDA loan for which the Hospital has obtained an irrevocable funding commitment. The outstanding balance of the Hospital Revenue Bonds that will be repaid with a Community Facilities Loan at June 30, 2025, was $21,569,000. As of June 30, 2025, the Hospital had not completed these projects. As the U.S. Department of Agriculture (USDA) has made a commitment on the Hospital Revenue Bonds and the expenditures from the Hospital Revenue Bonds that will be repaid from a Community Facilities direct loan, these expenditures are considered federal awards expended.