Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the federal loan and grant activity of Pikeville Medical Center and subsidiaries (the Hospital) and is presented on the accrual basis of accounting. The information in this 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Loan Balance Outstanding: There were no proceeds received or expended by the Hospital under the Community Facilities program during the year ended September 30, 2025. The expenditures reported on the Schedule of Expenditures of Federal Award represent the total balance of the loans outstanding at October 1, 2024 of $184,599,239. The total balance of the loans outstanding at September 30, 2025 is $180,746,960. De Minimis Indirect Cost Rate: The Hospital has elected not to use the 15-percent de minimis cost rate allowed under the Uniform Guidance.
The Hospital'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 Hospital'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 Hospital expects such amount, if any, to be immaterial.