The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Children s Health Care and its subsidiaries (Children s) under programs of the U.S. government for the year ended December 31, 2025. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between Children s and agencies and departments of the federal government and all subawards made to Children s by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The awards are classified into program categories in accordance with the provisions of the Uniform Guidance. For the year ended December 31, 2025, Children s had no expenditures in the form of noncash assistance, had no federally provided insurance in effect, or loans or loan guarantees outstanding at year end. This Schedule is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance.
Expenditures for federal programs are recognized using cost accounting principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations (2 CFR part 230). Under these cost principles, certain types of expenditures are not allowed or are limited as to reimbursement. Expenditures include a portion of costs associated with general activities (facilities and administrative costs or indirect costs), which are allocated to federal awards under negotiated formulas. Indirect costs allocated to such awards for the year ended December 31, 2025 were based on a predetermined rate of 52.77% negotiated with Children s oversight federal agency, the U.S. Department of Justice, and are included as a component of the expenditures for applicable grants in the Schedule. Lower facilities and administrative cost rates were used when specifically stated in respective grant agreements.
Program income, which is netted against the respective program expenses for the current year, was earned on Assistance Listing Number (ALN) 16.758 in an amount of $29,135.
A reconciliation of federal revenue reported in Children s consolidated financial statements for the year ended December 31, 2025, to the schedule of expenditures of federal awards for the year ended December 31, 2025, is as follows: Other revenue per the consolidated financial statements $52,206,364 Plus - grant related program income $29,135 Less Other nonfederal grant revenue -$4,480,403 Less Other nonfederal operating reveue -$43,183,852 Total per schedule of expendutures of federal awards $4,571,244