Notes to SEFA
The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Newark Community Health Centers, Inc. ("NCHC") 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, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedule presents only a selected portion of the operations of NCHC, it is not intended to and does not present the financial position, change in net assets, or cash flows of NCHC.
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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 25-12, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NCHC has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
NCHC 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 Preventive and Primary Care Program. This letter of agreement pays NCHC a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2025, the amount earned and recognized as net revenue under this letter of agreement for the contract period July 1, 2024 to June 30, 2025 was $841,362 and for the contract period July 1, 2025 to June 30, 2026 was $810,084. Revenue for this program is included in patient services revenue in the basic financial statements. Allowances are calculated based on expected cash collections.