The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes all federal grants to WellSpan Health that had expenditure activity during fiscal year 2023. The Schedule has been prepared in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), and on the accrual basis of accounting. In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Notes 2 and 3). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of WellSpan Health. For purposes of the Schedule, federal awards include any assistance provided by a federal agency either directly or indirectly in the form of grants, contracts, cooperative agreements, direct appropriations, loan and loan guarantees, and other noncash assistance. Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for awards subject to the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election. WellSpan Health has elected to use the 10% de minimis indirect cost rate as covered in Uniform Guidance section 2 CFR 200.414 Indirect (F&A) costs.
The amount presented on the SEFA for Federal Assistance Listing Number 93.498, COVID-19 Provider Relief Fund, is for the year ended June 30, 2023. As required based on the guidance in the 2023 OMB Compliance Supplement, the Schedule includes all Period 4 and 5 funds received between July 1, 2021 and June 30, 2022 and used for PRF-eligible activity from the period January 1, 2020 through June 30, 2023 as reported to the Health Resources and Services Administration (HRSA) via the Provider Relief Fund Reporting Portal. The payment receipt period and activity period and the resulting amount presented on the accompanying Schedule for the year ended June 30, 2023 reconciles to the PRF information previously reported to HRSA for PRF Reporting Periods 4 and 5 as follows: (See the Notes to the SEFA for chart/table) Lost revenues incurred by WellSpan Health during the period of availability for PRF Reporting Period 4 and Period 5 (January 1, 2020 through June 30, 2023) are in excess of the general and targeted distributions received from July 1, 2020 through June 30, 2022 and, therefore, the amounts presented in the table above and on the accompanying Schedule are limited to the amount of such distributions.
WellSpan Health received a disaster grant awards in 2023 related to COVID-19. Expenditures included in the Schedule for Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036) of $18.5 million relate to the recovery of expenses incurred by the Company prior to the year ended June 30, 2023.
The following table details grant revenue recognized, grant receipts, and receivables for grants received from the Department of Health and Human Services and passed through the Pennsylvania Department of Health for the year ended June 30, 2023: (See the Notes to the SEFA for chart/table)