Notes to SEFA
The accompanying schedule of expenditures of federal awards and schedule of expenditures of state awards include the grant activity of Cherokee Health Systems d/b/a River Valley Health, (the Company), as discussed in Note A to the financial statements and are presented on the accrual basis of accounting. The information in these schedules 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 (Uniform Guidance) and the State of Tennessee Comptroller of the Treasury, respectively. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the financial statements.
DeMinimis Indirect Cost Rate: The Company has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Company's federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditure and affect the Company's continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time although the Company expects such amounts, if any, to be immatieral.