Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the University of North Carolina Health Care System Funds (System Fund), which is a fund of the University of North Carolina Health Care System that is an affiliated enterprise of the multi-campus University of North Carolina System, a component unit of the State of North Carolina, under programs of the federal government for the year ended June 30, 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). Because the Schedule presents only a selected portion of the operations of the System Fund, it is not intended to and does not present the financial position, activities, changes in net position, or cash flows of the System Fund.
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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) The System Fund incurred eligible disaster expenditures during the COVID-19 pandemic. The Federal Emergency Management Agency (FEMA) awarded the Disaster Grants – Public Assistance (Presidentially Declared Disasters) grant to the System Fund to assist with the expenditures related to the response and recovery to the COVID-19 pandemic. The System Fund incurred $46,664,849, $22,047,162 and $1,747,462 of eligible expenditures in calendar years 2021, 2022 and 2023, respectively. The System Fund also reduced eligible expenditures by $(86,643) from deobligated costs incurred during calendar years 2020, 2022 and 2023. FEMA approved the related project worksheets for these expenditures in fiscal year 2025, thus, these amounts have been included in the Schedule as required by the OMB Compliance Supplement.
The System Fund has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.