Notes to SEFA
Title: Provider Relief Fund
Accounting Policies: 1.BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIESThe accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of federal financial assistance and federal cost-reimbursement contracts of Baystate Health, Inc. and subsidiaries (Baystate Health). The information in the 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 (the Uniform Guidance). Federal program expenditures included in the Schedule are presented on the accrual basis of accounting. The accompanying consolidated financial statements of Baystate Health are also prepared on the accrual basis of accounting.Baystate Health is the subrecipient of certain federal funds, which are reported as expenditures and listed as pass-through funds on the Schedule.Major ProgramsMajor programs are identified in the summary of auditors results section of the schedule of findings and questioned costs.Program ClusterThe research and development programs are treated as a clustered program for audit purposes.Nature of ProgramsBy definition, the programs are federally funded. As such, funding is at the discretion of the federal government. However, there has been no indication of discontinuance other than normal completion.Categorization of ExpendituresThe categorization of expenditures by program included in the Schedule is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing. The Schedule for the year ended September 30, 2022, reflects Assistance Listing Number changes issued through September 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Baystate Health has elected not to use the 10% indirect cost rate allowed under the Uniform Guidance, and instead uses a provisional indirect cost rate for certain grants of 48% of total modified direct costs for the year ended September 30, 2022. The provisional rate was based upon 2014 financial information. For grants where the provisional rate is not used, rates are negotiated directly with the respective grant sponsors.
3.PROVIDER RELIEF FUNDFor the awards from the Department of Health and Human Services (HHS) related to the Provider Relief Fund (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability).The Schedule includes $9,550,000 received from HHS between July 1, 2020, through June 30, 2021. In accordance with guidance from HHS, this amount was submitted to the HRSA PRF Reporting Portal for Period 2; and there was no submission for Portal Period 3. $16,257,163 and $57,084,601 were recognized as other revenue in Baystate Healths financial statements in the years ended September 30, 2022 and 2021, respectively. Due to the PRF Reporting requirements, these amounts are not the total PRF received and/or recognized as other revenue in the years presented in the accompanying financial statements.The Schedule includes the PRF of the following entities: (Refer to reporting package.)