Notes to SEFA
Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of HonorHealth and is presented on the accrual basis of accounting. The information in the SEFA 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). For purposes of the SEFA, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loan and loan guarantees, or other non-cash assistance. The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. HonorHealth has reimbursement-type federal grant contracts and noncash federal grant contracts. Payments of federal awards received under the terms of the reimbursement-type grant contracts are used to reimburse HonorHealth’s allowable program expenditures. Noncash federal expenditures are reported in the SEFA based on the total pounds of food distributed by HonorHealth multiplied by the fair value per pound of food, as of the receipt date.
HonorHealth has elected to use the 15% de minimis indirect cost rate allowed by the Uniform Guidance.
In fiscal year 2025, HonorHealth received approval from the Federal Emergency Management Agency for 3 projects related to the reimbursement of eligible expenditures of $13,173,360 incurred in previous fiscal years. These previous years’ expenditures are included in the SEFA in the current year in accordance with guidance provided by the U.S. Department of Homeland Security.