Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Harrisonburg Community Health Center, Inc. d/b/a Healthy Community Health Centers (the Organization) 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Federal Financial Assistance – The Single Audit Act Amendment of 1996 (Public Law 104-156) and the Uniform Guidance define federal financial assistance as grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, or other assistance. Federal financial assistance does not include direct federal cash assistance to individuals. Direct Payments – Assistance received directly from the federal government is classified as direct payments on the Schedule. Pass-through Payments – Assistance received in a pass-through relationship from entities other than the federal government is classified as pass-through payments on the Schedule. Major Programs – The Single Audit Act Amendment of 1996 (Public Law 104-156) and the Uniform Guidance establish the criteria to be used in defining major programs. Major programs for the Organization were determined using a risk-based approach in accordance with the Uniform Guidance. Federal Assistance Listing – The Federal Assistance Listing is a government-wide compendium of individual federal programs. Each program included in the catalog is assigned a five-digit program identification number (Federal Assistance Listing Number), which is reflected on the Schedule. Cluster of Programs – Closely related programs that share common compliance requirements are grouped into clusters of programs. A cluster of programs is considered as one federal program for determining major programs. The following is the cluster administered by the Organization: Health Center Program Cluster.
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.
The Organization has elected to use the 15-percent de minimis indirect cost rate as allowed under the Uniform Guidance.