Notes to SEFA
Title: Programs Subject to Single Audit
Accounting Policies: Expenditures reported on the Schedule are recognized under 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
All significant federal awards received by ECU Health, either directly from the federal government or passed through from other organizations, have been included in the Schedule.
Title: Provider Relief Fund
Accounting Policies: Expenditures reported on the Schedule are recognized under 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Under terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, ECU 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 expenses and lost revenue in certain reporting periods based on when the funds were received and used by ECU Health in accordance with the PRF terms and conditions. ECU Health received PRF of approximately $28.4 million in the year ended September 30, 2022, and recognized $28.4 million as other nonoperating revenue in its September 30, 2022 statements of revenues, expenses and changes in net position, as the terms and conditions of the PRF grant were satisfied during those years. Under the HHS requirements, the 2022 Schedule includes PRF of approximately $30.7 million which was received by ECU Health between July 1, 2020, and June 30, 2021. The remainder of the PRF amounts received will be reported in a subsequent Schedule.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited)
Accounting Policies: Expenditures reported on the Schedule are recognized under 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
During the year ended September 30, 2022, ECU Health did not receive significant donated personal protective equipment from federal sources.