Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activity of federal financial assistance and federal cost‐reimbursement contracts of Baystate Health, Inc. and subsidiaries (“Baystate Health”). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Federal program expenditures included in the Schedule are presented on the accrual basis of accounting. The accompanying consolidated financial statements of Baystate Health are also prepared on the accrual basis of accounting. Baystate Health is the subrecipient of certain federal funds, which are reported as expenditures and listed as pass‐through funds on the Schedule. Major Programs—Major programs are identified in the summary of auditor’s results section of the schedule of findings and questioned costs. Program Cluster—The research and development programs are treated as a clustered program for audit purposes. Nature of Programs—By definition, the programs are federally funded. As such, funding is at the discretion of the federal government. However, there has been no indication of discontinuance other than normal completion. Categorization of Expenditures—The categorization of expenditures by program included in the Schedule is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing. The Schedule for the year ended September 30, 2025, reflects Federal Assistance Listing Number changes issued through September 2025.
Baystate Health has elected not to use the de minimis indirect cost rate of up to 15% allowed under the Uniform Guidance and instead uses a provisional indirect cost rate for certain grants of 58% of total modified direct costs for the year ended September 30, 2025. The provisional rate was based upon 2022 financial information. For grants where the provisional rate is not used, rates are negotiated directly with the respective grant sponsors.