Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the grant activity of Northeast Georgia Health System, Inc. and Affiliates (the System) 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.
De Minimus Indirect Cost Rate: The System has elected not to use the 15-percent de minimus indirect cost rate allowed under the Uniform Guidance.
During the year ended September 30, 2025, the System recognized $2,100,000 of expenditures on the Schedule of Expenditures of Federal Awards under a Health Resources and Services Administration (HRSA) Congressional Directed Spending award. These expenditures related to activities that occurred in a prior fiscal year. At the time the expenditures were incurred, the terms and conditions of the federal award were not finalized, and the System did not consider a federal award to be in effect. During the current year, the System and HRSA reestablished and finalized the terms of the award and authorized funding for these activities. Accordingly, the System recognized the related expenditures on the Schedule of Expenditures of Federal Awards in the current year. The System evaluated the treatment of these expenditures and concluded that recognition in the current year is appropriate based on the timing of award reestablishment and authorization.
The System'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 expenditures and affect the System'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 System expects such amounts, if any, to be immaterial.