Notes to SEFA
The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of Citizens Medical Center, Inc. and Citizens Foundation (the “Organization”). 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 (the “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.
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 not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization passed no federal awards through to subrecipients.
On April 5, 2024, Citizens Medical Center, Inc. issued USDA Revenue Bonds issued through the City of Colby, Kansas. The bonds are temporary financing of the new Hospital building and were refunded in March 2026 by a $86,599,000 USDA Direct Loan, a $21,650,000 USDA Guaranteed Loan, and a $10,884,000 Supplemental Loan with amortizations of 35, 30, and 35 years, respectively. Interest payments began when the certificate of occupancy was issued. The balance outstanding at December 31, 2025, on the USDA bonds is $108,249,000.