Notes to SEFA
The accompanying schedule of expenditures of federal awards (“SEFA”) includes the federal grant transactions of HealthAlliance, Inc. (the “Corporation”) and is presented on the accrual basis of accounting. The Corporation receives payments from the federal and state government on behalf of Medicaid and Medicare eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance.
Matching costs (i.e., the nonfederal share of certain program costs) are not included in the accompanying SEFA.
The Corporation utilizes a direct cost rate and has not elected to use the 15% de minimis cost rate allowed by Uniform Guidance.
No amounts were provided to subrecipients.
Included in the SEFA is a mortgage loan insured under the provisions of the U.S. Department of Housing and Urban Development - Mortgage Insurance: Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities program. In accordance with section 502(b) of the Uniform Guidance, the loan balance outstanding at the beginning of the period is included as the federal expenditures presented in the Schedule. The remaining balance of the loan was satisfied during the year ended December 31, 2025. Refer to Note 7 of the accompanying financial statements for additional information on this loan.
The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in federal financial reports do not necessarily agree with the amounts reported in the accompanying SEFA which is prepared on the accrual basis of accounting.