Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the Organization under programs of the federal government for the year ended December 31, 2022. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Amounts Passed Through to Subrecipients
Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization did not pass through any federal awards to subrecipients during 2022.
Title: Provider Relief Fund Reporting
Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aid, Relief, and Economic Security Act, the Organization was required to report the COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting period based on when the funds were received. The 2022 SEFA includes PRF of $1,801,708 which was received by the Organization between January 1, 2021 and December 31, 2021, the date designatedby HHS for its third and fourth PRF reporting period. The Organization recognized $1,801,708 as revenue in its 2021 statement of activities and changes in net assets as the terms and conditions of the PRF grant were satisfied by the Organization. The Organization did not receive any PRF funds in 2022.
Title: Fair Market Value of Donated Personnel Protective Equipment (Unaudited)
Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Muskingum Valley Health Centers has determined that the fair value of donated PPE received during 2022 was immaterial to the financial statements. The donated PPE was not considered for purposes of determining the threshold for Uniform Guidance determination of major programs and is not required to be audited as a major program.
Title: USDA Loan Payable
Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization had the following loan payable balance outstanding as of December 31, 2022 from the United States Department of Agriculture (USDA). This loan requires a minimum of $118,068 of funds to be set aside for repair or replacement of the facility that these USDA funds were used for. U.S. Department of Agriculture (10.780) - Balances outstanding at the end of the audit period were $1,964,176.