Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Community Memorial Health System (the Organization) 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 the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, results of operations, or cash flows of the Organization. The Organization’s reporting entity is defined in Note 1 of the consolidated financial statements. All federal awards from federal agencies are included in the Schedule.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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 Organization has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Loans outstanding at the beginning of the year plus the new value of new loans received during the year are included in the federal expenditures presented in the schedule of expenditures of federal awards. The balance of the loans outstanding as of December 31, 2025, consisted of: (See Notes to SEFA - Note 3 - Loan Balance for included table)
The Organization did not provide any federal awards to subrecipients during the year ended December 31, 2025.
Expenditures for disaster grants are recorded on the Schedule when the Federal Emergency Management Agency (FEMA) has approved the Organization’s project, and the eligible expenditures have been incurred by the Organization. The Schedule includes $6,238,114 in eligible expenditures that were approved by FEMA during the year ended December 31, 2025, and incurred in prior years.