Basis of Presentation—The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Mennonite General Hospital, Inc. and subsidiaries (the “Hospital”) under programs of the federal government for the year ended March 31, 2026. The information in the 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). Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital. The financial statements of the Hospital include various subsidiaries outlined in Note 1 to the financial statements. The financial statements of Servicios de Salud en el Hogar Menonita, Plan de Salud Menonita, Inc., Hospital Menonita Ponce, Inc., Caribe Rx, Inc., and the Elderly Homes as of and for the year ended March 31, 2026 were audited in accordance with generally accepted auditing standards, but were not audited in accordance with Government Auditing Standards. Basis of Accounting—The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. This is consistent with the basis of accounting used in the preparation of the consolidated financial statements. 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.
To the extent indirect costs are allowable, the Hospital elects to use the 10% or 15% de minimis indirect cost rates allowed, as applicable, under the Uniform Guidance, as needed.
The Schedule presents the federal guaranteed/insured loan balance of the Hospital as of March 31, 2026. U.S. Department of Housing and Urban Development (HUD) insures lenders against loss on mortgages. The loans may be used to finance the construction, modernization, equipment, or refinancing of acute care hospitals. As of March 31, 2026, the balance outstanding was $78,405,242.
The Disaster Grants-Public Assistance (Presidentially Declared Disasters) program and Hazard Mitigation Grant Program, and Community Development Block Grant Program presented in the Schedule includes $165,181, $354, and $69,776, respectively, of expenses that were incurred in prior fiscal years.