Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Kiowa District Hospital 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). Because the Schedule presents only a selected portion of the operations of Kiowa District Hospital, it is not intended to and does not present the financial position, changes in net position or cash flows of Kiowa District Hospital.
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. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Kiowa District Hospital has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
On April 15, 2014, Kiowa District Hospital issued United States Department of Agriculture (USDA) Hospital Refunding Revenue Bond, Series 2014, under the USDA Rural Development program in the amount of $3,000,000. The Series 2014 bond proceeds were used to finance a portion of the construction project for the new hospital facility. On March 26, 2021, Kiowa District Hospital issued United States Department of Agriculture (USDA) Hospital Revenue Bond, Series 2021, under the USDA Rural Development program in the amount of $900,000. The Series 2021 bond proceeds were used to finance a portion of the Hospital’s Behavioral Health and Wellness addition. The balance outstanding at December 31, 2024, of the USDA loans, is $2,394,610, as reported in Kiowa District Hospital’s balance sheet. Loans outstanding at the beginning of the year were $2,624,805.