Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Queen’s Health Systems and its subsidiaries (the Company) 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic consolidated financial statements.
For the Research and Development Cluster, the Company did not elect to use the 10% de minimis indirect cost rate as discussed in the Uniform Guidance Section 200.414 as the Company has a negotiated rate with the United States Department of Health and Human Services for the year ended June 30, 2025. For programs other than the Research and Development cluster, the Company elected to use the 10% de minimus indirect cost rate as discussed in the Uniform Guidance Section 200.414 if indirect costs are applicable to the grant.
Nonfederal entities must record expenditures on the Schedule when FEMA has obligated the nonfederal entity’s project worksheet, and the nonfederal entity has incurred the eligible expenditures. The amount shown on the Schedule for the year ended June 30, 2025 includes $369,582 in expenditures that were incurred in prior years but were obligated in fiscal year 2025.