Notes to SEFA
The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Paterson Community Health Center, Inc. (the "Center") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 25-12. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center.
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 Center has not elected to use de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable.
The Center contracted with the State of New Jersey Department of Health and Senior Services to provide health and medical services to the uninsured population under the Expansion of Primary Care Services to the Uninsured by Federally Qualified Health Centers. Per a Letter of Agreement, the Center is paid a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2025, the amount earned and recognized as revenue under this Letter of Agreement for the contract period from July 1, 2025 to June 30, 2026 was $228,017 and for the contract period from July 1, 2024 to June 30, 2025 was $227,886, both of which are included in patient services revenue.