Notes to SEFA
Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Miami Children's Health System, Inc. d/b/a Nicklaus Children's Health System and Subsidiaries (the System) under programs of the federal government 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the System's consolidated financial statements. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets or cash flows of the System.
Note 2. Summary of Significant Accounting Policies Expenditures reported in the Schedule are recognized under the accrual basis of accounting except for expenditures passed through to subrecipients. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The System allocates indirect costs to each program based on the amount specified in the budget for each program. The System has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3. Restatement of the Schedule of Expenditures of Federal Awards Subsequent to the issuance of the Schedule of Expenditures of Federal Awards for the year ended December 31, 2025, dated April 7, 2026, management identified that the SEFA did not include the required presentation of amounts provided to subrecipients and that federal expenditures for Assistance Listing Number (ALN) 10.557 were not reported in accordance with the basis for determining when federal awards are expended for amounts provided to subrecipients under Uniform Guidance. As a pass-through entity, the System's policy is to report amounts provided to subrecipients based on when disbursements are made to the subrecipients. However, the previously issued SEFA reflected subrecipient activity based on when the related expenditure transactions were incurred by the subrecipients rather than when funds were disbursed to the subrecipients. As a result, total federal expenditures for ALN 10.557 were overstated. The SEFA has been restated to correct these matters. Total federal expenditures for ALN 10.557 decreased from $379,826 to $278,816, consisting of $19,002 of amounts provided to subrecipients and $259,814 of expenditures incurred directly by the System. No other federal programs or periods were affected.