Title: Basis of Presentation
Accounting Policies: 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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 (the Schedule) presents the activity of all financial assistance programs of Deborah Heart and Lung Center, tax ID #23-1550955, and Deborah Cardiovascular Group, P.C. (collectively referred to as the Center). 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included in the Schedule. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Provider Relief Fund and American Rescue Plan Rural Distribution
Accounting Policies: 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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.
For the Department of Health and Human Services (HHS) awards related to the Provider Relief Fund (PRF) and American Rescue Plan Rural Distribution program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $827,443 received from HHS between July 1, 2021 and December 31, 2021. In accordance with guidance from HHS, these amounts are presented as Period 4. Such amounts were recognized as revenue in the Center's consolidated financial statements as shown in the Schedule for the year ended December 31, 2021. Due to the PRF reporting requirements, these amounts are not the total PRF received and/or recognized as revenue in the year presented in the Schedule.
Title: Loans Outstanding
Accounting Policies: 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES: The accompanying Schedule is presented using the accrual basis of accounting which is described in Note 2 to the consolidated financial statements. 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.
In December 2021, the Center was issued and guaranteed loans by the United States Department of Agriculture (USDA) under assistance listing #10.766 as follows: 1) an $88,174,000 direct loan by the USDA (the USDA Loan); and 2) a $10,277,000 loan by Greater Nevada Credit Union, guaranteed by the USDA (the Guaranteed Loan). These loans will underwrite the construction and renovation costs of the Deborah 100 Expansion Project. The USDA Loan is a 40-year loan with a fixed interest rate of 2.125%. The Guaranteed Loan is a 30-year loan with a fixed interest rate of 4.07%. These loans will close once the certificate of occupancy for the renovations and expansion is issued. Completion of the Deborah 100 Expansion Project is expected to occur in May 2024. To fund the Deborah 100 Expansion Project during construction, Greater Commercial Lending, a credit union service organization wholly owned by Greater Nevada Credit Union, has committed to provide the Center with drawdown bridge financing, also guaranteed by the USDA, for a period of three years at a fixed rate of 2.89% and requires monthly interest-only payments. The drawdowns on the Greater Commercial Lending bridge financing began on December 16, 2021, and totaled $929,407 during the year ended December 31, 2021 and $12,354,976 during the year ended December 31, 2022 for a total of $13,284,383 as of December 31, 2022, and is reported as the expenditure amount on the Schedule. The Greater Commercial Lending loan had a balance of $13,284,383 at December 31, 2022.