Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Deborah Heart and Lung Center (the "Center") under programs of the federal government for the year ended December 31, 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"). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included in the Schedule. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Expenditures reported on the Schedule are reported on the accrual basis of accounting 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.
The Center has not elected to utilize the 10% de minimis rate and has not applied an indirect cost rate to federal awards.
In December 2021, the Center was issued and guaranteed loans by the United States Department of Agriculture ("USDA") as follows: 1) an $88,174,000 direct loan by the USDA (the "USDA Loan"); and 2) a $10,277,000 loan by Greater Nevada Credit Union, guaranteed by the USDA (the "Guaranteed Loan"). These loans will underwrite the construction and renovation costs of the "Deborah 100" Expansion Project. The USDA Loan is 40-year loan with a fixed interest rate of 2.125%. The Guaranteed Loan is a 30-year loan with a fixed interest rate of 4.07%. These loans will close once the certificate of occupancy for the renovations and expansion is issued. Completion of the "Deborah 100" Expansion Project is expected to occur in September 2026. To fund the "Deborah 100" Expansion Project during construction, Greater Commercial Lending, a credit union service organization wholly owned by Greater Nevada Credit Union, has committed to provide the Center with "drawdown" bridge financing, also guaranteed by the USDA, for a period of 3 years at a fixed rate of 2.89% and requires monthly interest only payments. The drawdown on the Greater Commercial Lending bridge financing began on December 16, 2021 and was extended through September 2026. Drawdowns on the Greater Commercial Lending bridge financing began in 2021 and totaled $65,430,820 through December 31, 2025, of which $11,248,008 was drawn down in 2025, and is reported as the expenditure amount on the Schedule. The Greater Commercial Lending loan had a balance of $65,430,820 at December 31, 2025.