Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Essentia Health under programs of the federal government for the year ended June 30, 2025. The information in the 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 Essentia Health, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Essentia Health.
Expenditures reported 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 allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Indirect cost rates for Essentia Health were based on applicable U.S. Department of Health and Human Services negotiated rates or sponsor-specified (capped) rates.
The following is a summary of the loans awarded through the United States Department of Agriculture Community Facilities Loans and Grants program. The beginning loan balances represent the amount outstanding at July 1, 2024. This amount is included on the schedule of expenditures of federal awards as required by the Uniform Guidance. The outstanding loan balances represent the amount outstanding at June 30, 2025.