Notes to SEFA
Title: NOTE A BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The Center has elected to use the10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of expenditures of federal awards for the year ended June 30, 2022 includesthe federal grant activity of LifeSpring Health Systems, Inc. (the Center) and is presented on the accrualbasis of accounting. The information in this schedule is presented in accordance with requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). The financial statement classifications mayinclude other financial activity for reporting purposes. Therefore, some of the amounts presented in thisschedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: NOTE C OTHER
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The Center has elected to use the10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
During the year ended June 30, 2022, the Center did not provide any federal awards to subrecipients.In addition, there were no federal awards expended in the form of non-cash assistance and there were noloan guarantees outstanding at year-end.
Title: NOTE D PROVIDER RELIEF FUNDS
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The Center has elected to use the10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Under terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aids, Relief, and Economic Security (CARES) Act, the Center is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received. The 2022 SEFA includes PRF of approximately $39,000 which was received by the Center prior to June 30, 2021. HHS requires these PRF amounts to be reported on the 2022 SEFA rather than the 2021 SEFA. The Center recognized $2,175,000 as revenue in its 2022 statement of activities and changes in net assets as the terms and conditions of the PRF grant were satisfied by the Center during 2022. HHS required these PRF amounts be reported on the 2023 SEFA rather than the 2022 SEFA.
Title: NOTE E FAIR MARKET VALUE OF DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDI
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. The Center has elected to use the10% de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
During 2022, the Center did not receive donated personal protective equipment from federal sources.