Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the DeSoto County Hospital District (the District), under programs of the federal government for the year ended September 30, 2025. 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 District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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.
The District has elected not to use the 10% de minimis indirect cost rate for awards prior to October 1, 2024 nor the 15% de minimis indirect cost rate for awards on or after October 1, 2024, as allowed under Uniform Guidance.
There was a $20,000,000 direct U.S Department of Agriculture (USDA) loan originally issued in June 2006. This loan was issued for the construction and expansion of the District’s hospital facilities. The outstanding amount of the loan is $6,359,672 as of September 30, 2025, and the loan matures in June 2031. In accordance with guidance issued by the USDA, the amount included for the USDA expenditures in the Schedule for the year ended September 30, 2025, is $11,173,618, which represents the balance of the USDA loan as of October 1, 2024 (i.e., beginning of the audit period) plus the value of new loans received during the year ended September 30, 2025, which was zero.