Notes to SEFA
Title: RECONCILE OF PRF FUNDS
Accounting Policies: Basis of Presentation:The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of East Texas Community Health Services, Inc. (ETCHS) under programs of thefederal government for the year ended May 31, 2022. The information on this Schedule is preparedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofETCHS, it is not intended to and does not present the financial position, changes in net assets, orcash flows of ETCHS.Summary of Significant Accounting Policies:Expenditures are reported on the Schedule on the accrual basis of accounting.Federal grant funds are considered to be earned when all eligibility requirements have been met.Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable,respectively.The disbursement of funds received under federal grant programs generally requires compliancewith terms and conditions specified in the grant agreements and is subject to audit by the grantoragencies. Any disallowed claims resulting from such audits could become a liability of ETCHS. Inthe opinion of management, such disallowed claims, if any, will not have a material effect on anyof the financial statements or on the overall financial position of ETCHS at May 31, 2022.ETCHS has elected not to use the 10-percent de minimis indirect cost rate as allowed under theUniform Guidance.The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes Provider ReliefFunds (PRF) that were received by ETCHS in a prior period. ETCHS is required to report theexpenditures of these funds in the reporting time period as defined by the U.S. Department of Heathand Human Services. Federal revenues in the accompanying financial statements, likewise, includePRF revenues which will be reported as federal expenditures in a subsequent period.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
A reconciliation of these PRF follows:Total federal and state expenditures per the SEFA (page 25) $6,187,275PRF funds received in prior periods & expended in FY 2022 (520,087)PRF funds received in FY 2022 & expended in subsequent periods 185,945Total federal and state revenues per the Statement of Activities (page 6) $5,853,133