Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Federal Schedule”) presents the activities of the federal financial assistance programs of Hackensack Meridian Health, Inc. and its subsidiaries (the "Network") that have been financed by the U.S. Government. The information in this Federal Schedule is presented in accordance with the requirements of the 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 this Federal Schedule may differ from amounts presented in or used in preparation of the consolidated financial statements. All financial assistance received directly from federal agencies, as well as financial assistance passed through other governmental agencies or nonprofit organizations, are included on the Federal Schedule. Direct and indirect costs are charged to awards in accordance with cost principles contained in the Uniform Guidance, U.S. Office of the Assistant Secretary Comptroller ("OASC"), OASC-3, A Guide for Hopsitals. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Federal Schedule is presented on the accrual basis of accounting. Because the Federal Schedule presents only a selected portion of the activities of the Network, it is not intended to, and does not, present the consolidated financial position, results of operations, and changes in net assets or cash flows of the Network. The Network does not use the 10% - 15% de-minimus indirect cost rate for sponsored programs, as applicable, as described in Section 200.414 of the Uniform Guidance. The Network charges indirect costs to federal awards based on award-specific rates as defined in each grant award. For awards with program names identified as award years 2024 and 2026, only expenses incurred during the year ended December 31, 2025 are reported on the Schedule. These awards have grant periods that do not align with the Network's calendar year end.
Full Assistance Listing Numbers (“ALN”) and pass through award numbers are presented where available and applicable.
The Network is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program and, accordingly, the total outstanding loans are not included in the Network’s consolidated financial statements. The Network operates two distinct Schools, the HMSOM and the JFKSON, that participate in the Federal Direct Student Loan Program. Each School possesses its own Employer Identification Number and independently manages its student financial aid regulatory compliance. It is not practical to determine the balance of loans outstanding to students under this program for either School as of December 31, 2025. The Schedule includes loans granted in 2025.
As of December 31, 2025, the Network recorded $912 in obligated FEMA funds under ALN 97.036 as other revenue in the consolidated statements of operations. The claims submitted represented incurred eligible operating expenses attributed to the Network’s response to COVID-19 which were not only expended but also obligated by the federal and state agencies.