Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (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 ofexpenditures are not allowable or are limited as to reimbursement. 4C Health has elected not to use the 10%de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule includes the federal award activity of Four County Health Comprehensive Mental Health Center, Inc. d/b/a 4C Health (4C Health) under programs of the federal government for the year ended June 30, 2022. 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 4C Health, it is not intended toand does not present the financial position, changes in net assets, or cash flows of 4C Health.
Title: Sub-Recipient Pass Through
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (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 ofexpenditures are not allowable or are limited as to reimbursement. 4C Health has elected not to use the 10%de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
4C Health did not pass-through federal awards to sub-recipients during 2022.
Title: Provider Relief Funds
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (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 ofexpenditures are not allowable or are limited as to reimbursement. 4C Health has elected not to use the 10%de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under terms and conditions of the Provider Relief Fund (PRF) grants authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and grants authorized under the American Rescue Plan Act (ARP), 4C Health is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expensesand lost revenue in certain reporting periods based on when the funds were received. The 2022 Schedule includes PRF of approximately $3,113,000 which was received by 4C Health between July 1, 2020 and June 30, 2021. 4C Health recognized this entire amount as revenue in its 2022 statement of activities and changes in net assets as the terms and conditions of the PRF grant were satisfied by 4C Health during 2022. Regardless of receipt and expenditures of these funds, HHS requires expenditures for these PRFamounts to be reported on the 2022 Schedule rather than the 2021 Schedule. During 2022, 4C Health received PRF and ARP of approximately $1,374,000. This entire amount was recorded as a refundable advance as of June 30, 2022. Regardless of receipt and expenditures of these funds, HHS requires expenditures for these PRF amounts to be reported on the 2023 Schedule rather than the 2022 Schedule.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited)
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (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 ofexpenditures are not allowable or are limited as to reimbursement. 4C Health has elected not to use the 10%de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
During 2022, 4C Health did not receive donated personal protective equipment from federal sources.