The accompanying schedules of expenditures of federal awards and state financial assistance (the “Schedules”) present the activity of all financial assistance programs of Zufall Health Center, Inc. (the “Center”). The information in these Schedules 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”) and the New Jersey Department of the Treasury Circular Letter 25-12 OMB, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Therefore, some amounts presented in these Schedules may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. All federal awards and state financial assistance received directly from federal and state agencies as well as federal and state awards passed through other governmental agencies are included in the schedules of expenditures of federal awards and state financial assistance. Because these Schedules present only a selected portion of the operations of the Center, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the Center.
Of the federal and state expenditures presented in the Schedules, the Center provided no federal or state awards to subrecipients.
The Center does not have a federally negotiated indirect cost rate and has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The regulations and guidelines governing the preparation of federal, and state financial reports vary by federal or state agency and among programs administered by the same agency. Accordingly, the amounts reported in the consolidated financial statements do not necessarily agree with the amounts in the accompanying schedules of expenditures of federal awards and state financial assistance, which are prepared on the accrual basis as indicated in Note 2.
The Center contracted with the State of New Jersey Department of Health (the “Department”) to provide health and medical services to the uninsured population under the Preventive and Primary Care Program. The Department reimburses the Center for uninsured visits at a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2025, funding obligated to the Center by the Department under Letters of Agreement DCHS25FQH21L and DCHS26FQH09L amounted to $7,777,688 and $6,285,995, respectively. At December 31, 2025, the total amount earned and recognized as revenue under the Letters of Agreement was $7,604,660.
The Center has a promissory note with the United States Department of Agriculture (“USDA”) under assistance listing #10.766, which is included on the schedule of expenditures of federal awards in the amount of $304,222. This amount represents the beginning of the year balance plus accrued interest, and is also the balance at December 31, 2025.