Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. No federal financial assistance has beenprovided to a subrecipient.
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) includes the federal award activityof Memorial Regional Health (the Hospital) under programs of the federal government for the year endedDecember 31, 2022. The information 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 forFederal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations ofthe Hospital, it is not intended to and does not present the financial position, changes in net position, or cashflows of the Hospital.
Title: Loan Programs
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. No federal financial assistance has beenprovided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on this schedule consists of the beginning of the year outstanding loan balance of the Hospitals USDA direct loan of $62,201,287. If applicable, advances made on the loan during the year are reported on the Schedule. The Hospital made no advances on the loan during the year ended December 31, 2022. The Hospitals outstanding loan balance for the direct loan as of December 31, 2022 was $61,006,553.
Title: Provider Relief Fund and American Rescue Plan Rural Distribution
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. No federal financial assistance has beenprovided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Hospital received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the year ended December 31, 2022. The Hospital incurred eligible expenditures, including lost revenue, and therefore, recognized revenues totaling $1,401,784 for the year ended December 31, 2022 on the financial statements. However, PRF expenditures were not recognized on the schedule until the expenditures are included in the reporting to HHS, as required under the PRF program. This resulted in $1,105,950 being recognized in the schedule for the year ended December 31, 2022.