The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Albany Med Health System (the System) under programs of the federal government for the year ended December 31, 2025 as applicable, except for Kaaterskill Commons, Inc , which is subject to a separate audit in compliance with the Uniform Guidance. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Negative amounts shown on the schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The System has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance. Indirect costs are charged to federal grants and contracts at a federally approved predetermined rate. The predetermined rates for the year ended December 31, 2025 were 64% and 26% for on-campus programs and off-campus programs, respectively. Indirect costs are included in the reported federal expenditures.
(a) Federal Student Loan Programs The federal student loan programs listed below are administered directly by the System, and balances and transactions relating to these programs are included in the System’s combined financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. No federally reimbursed administrative costs were incurred by the College. (1) Federal Perkins Loan Program For the years ended December 31, 2025, the College made no loans under the Federal Perkins Loan Program (Assistance Listing Number (ALN) 84.038). The outstanding balance of loans under the Federal Perkins Loan Program was $187,273 at December 31, 2025. (2) Health Professions Student and Primary Care Loan Program. For the year ended December 31, 2025, the College disbursed $66,000 in new loans under the Health Professions Student and Primary Care Loan Programs (ALN 93.342). The outstanding balance of loans under the Health Professions Student and Primary Care Loan Programs was $962,036 at December 31, 2025. (3) Loans for Disadvantaged Students Program. For the year ended December 31, 2025, the College made no new loans under the Loans for Disadvantaged Students Program (ALN 93.342). The outstanding balance of loans under the Loans for Disadvantaged Students Program was $624,697 at December 31, 2025. (b) Federal Student Loan Guarantee Program. The College offers student financial assistance through the Federal Direct Student Loan Program under a program with the U.S. Department of Education (ALN 84.268), which is a student loan guarantee program. The College is only responsible for the performance of certain administrative duties relating to this program. The loans processed and guaranteed under this program during the year ended December 31, 2025 and included in the federal expenditures presented in the Schedule were $30,479,965.
Loan balances outstanding at the beginning of the year plus new loans made during the year are included in the federal expenditures presented in the schedule. Albany Medical Center Hospital (AMCH) had the following long-term debt obligations outstanding during 2025 which are insured against loss on mortgages to the lenders by the U.S. Department of Housing and Urban Development: Mortgage Insurance Hospitals-Refinance Loan - Federal Loan Assistance Number 14.128 Original insured loan amount $9,584,200- Loan Balance at December 31, 2024 $3,093,136- Additions $0- Payments $3,093,136 -Loan balance at December 31,2025 $0 Mortgage Insurance Hospitals-2010 Mortgage Loan - Federal Loan Assistance Number 14.128 Original insured loan amount $311,856,000- Loan Balance at December 31, 2024 $190,402,147- Additions $0- Payments $190,402,147-Loan balance at December 31,2025 $0 Mortgage Insurance Hospitals-2017 Mortgage Loan - Federal Loan Assistance Number 14.128 Original insured loan amount $65,000,000- Loan Balance at December 31, 2024 $55,500,436- Additions $0- Payments $55,500,436-Loan balance at December 31,2025 $0 In April 2017, AMCH closed on a $65,000,000 FHA insured construction loan (2017 Mortgage Loan) to finance the costs to construct a new Pediatric Emergency Department building and complete other renovations within the AMCH complex to increase patient care capacity. The 2017 Mortgage Loan is insured under the FHA-241 Program, with Prudential Huntoon Paige as the lender. It is secured by a lien on substantially all of AMCH’s property, equipment, and gross receipts. The loan has a fixed interest rate of 4.26%, had an interest only 23 month construction period. Principal payments commenced in April 2019 based on a 25 year schedule and the loan matures on March 1, 2044. Construction began in the spring of2017 and was completed mid 2020. In December 2010, AMCH closed on a $321,440,200 Mortgage Loan (2010 Mortgage Loan) which was comprised of a “Refinance Loan” of $9,584,200 and a “Patient Tower” Loan of $311,856,000 (which was reduced by $50,220,000 to $261,636,000 at Final Endorsement). The 2010 Mortgage Loan is insured under the FHA-241 program, with Prudential Huntoon Paige Associates as the lender. The 2010 Mortgage Loan is currently secured by a first lien mortgage on substantially all of AMCH’s property, equipment, and gross receipts, and a first mortgage lien on the South Clinical Campus of AMCH. The Refinance Loan was used to retire the Series 1999 Bonds, the original purpose of which was to acquire properties and rights of the former Child’s Hospital and Samaritan Service Corporation. The interest rate is 4.66% on the Refinance Loan and is payable through May 1, 2029. The Patient Tower Loan was used to finance AMCH’s expansion project consisting of a six-story patient tower, which contains 96 new beds, 20 new operating rooms and a co-generation plant. Final endorsement occurred in September 2014 in the amount of $261,636,055. The Patient Tower Loan has an interest rate of 6.2% and a maturity date of July 2038. In October 2025, AMCH closed on $375,405,000 in tax-exempt Series 2025A Revenue Bonds and $24,805,000 in taxable series 2025B Revenue Bonds issued by the city of Albany Capital Resource Corporation. A portion of the proceeds of the 2025 Bonds were used for the refinancing of all outstanding AMCH loans insured by the US Department of Housing and Urban Development.
Included in the Special Supplemental Nutrition Program for Women, Infants, and Children expenditures (ALN 10.557) is $2,532,542 of noncash assistance, which is the value of checks redeemed and electronic benefits transfers payments to beneficiary enrolled in the federal program by the system during the fiscal year.