Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes thegrant activity of Hunterdon Healthcare System, Inc. and Affiliates (the System) and is presented on theaccrual basis of accounting. The information in the Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of NewJerseys OMB Circular Letter 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants, andState Aid. Therefore, some amounts presented in the Schedule may differ from amounts presented in, orused in the preparation of, the basic consolidated financial statements.The System utilizes a negotiated indirect cost rate and has not elected to use the 10% de minimis cost rate.Grant monies received and disbursed by the System are for specific purposes and are subject to audit bythe grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures.Based upon prior experiences, the System does not believe that such disallowances, if any, would have amaterial effect on the financial position of the System. Management is not aware of any material questionor disallowed costs as a result of grant audits in process or completed.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.