Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards summarizes the expenditures of Arkansas Children's under programs of the federal government for the ye.ar ended June 30, 2025. The accompanying Schedule of Expenditures of State of Arkansas Financial! Assistance (collectively with the Schedule of Expenditures of Federal Awards, the Schedules) summarizes the expenditures of Arkansas Children’s under programs of the state government for the year ended June 30, 2025. The information in the Schedule of Expenditures of Feder.al Awards 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 Schedules present only a selected portion of the operations of Arkansas Children s, they .are not intended to, and do not, present the financial position, changes in net assets or cash flows of Arkansas Children’s. For purposes of the Schedules, federal awards include all grants, contracts, .and similar .agreements entered into directly between Arkansas Children's and agencies and departments of the federal government and all SubAwards to Arkansas Children’s by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
For the purpose of the Schedules, expenditures of federal and state award programs are reported on the accrual basis of accounting. Federal! Expenditures are recognized following the cost principles contained ·n the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The 10% de minims cost rate (as covered in 2 CFR I Part 200.414) was not used. Instead a federally negotiated indirect cost rate was used during the year.
In addition to amounts listed on the Schedules, Arkansas Children's reported $561,437,614 of other governmental .assistance, in the form of Medicaid reimbursements and Children's Hospital Graduate Medical! Education payments during the fiscal year ended June 30, 2025, which are not subject to the audit requirements as defined in the Uniform Guidance.