Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Memorial Health Services and Subsidiaries (“MHS”) under programs of the federal government for the fiscal year ended June 30, 2025. For purposes of this Schedule, federal awards include all federal assistance entered into directly between MHS and the federal government and subawards from nonfederal organizations made under federally sponsored agreements. The information in this 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 the organization, it is not intended to present the financial position, results of operations, changes in net assets, or cash flows of MHS.
Basis of Accounting Expenditures reported on the SEFA are reported on the accrual basis of accounting, which is consistent with the basis used in the preparation of the organization’s financial statements. Federal Expenditures Federal expenditures are recognized when the activity related to the federal award occurs. 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.
MHS uses indirect costs rates negotiated with funding organizations rather than the de minimis rate as described in Section 200.414 of the Uniform Guidance.
When federal awards are received as pass-through funds, the SEFA includes the identifying number assigned by the pass-through entity, when available.
The organization did not provide federal awards to subrecipients during the fiscal year.
MHS has one advance funded award (ALN 93.889) in which cash is held in a restricted account, and allowable expenditures are charged against these funds. Interest earned is tracked and remitted annually to the Department of Health and Human Services Division of Payment Management. This calendar year award allows a 15% carryover, which must be spent within 90 days after the year-end. As of December 31, 2024, MHS had no carryover.
Federal grantor agencies reserve the right to conduct additional audits of grant programs. Management believes the results of such audits, if any, would not have a material effect on the financial statements.