Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the grant activity of Virtua Health, Inc., (Virtua Health) and is presented on the accrual basis of accounting. The information in the 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) and the State of New Jerseys OMB Circular Letter 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Federally funded amounts that are passed through state agencies are included as expenditures of federal awards and are excluded from expenditures of state awards. Virtua Health has elected to use the 10% de minimis cost rate. Grant monies received and disbursed by Virtua Health are for specific purposes and are subject to audit by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experiences, Virtua Health does not believe that such disallowances, if any, would have a material effect on the financial position of Virtua Health. Management is not aware of any material question or disallowed costs as a result of grant audits in process or completed.
De Minimis Rate Used: Y
Rate Explanation: Virtua Health has elected to use the 10% de minimis cost rate. Grant monies received and disbursed by Virtua Health are for specific purposes and are subject to audit by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experiences, Virtua Health does not believe that such disallowances, if any, would have a material effect on the financial position of Virtua Health. Management is not aware of any material question or disallowed costs as a result of grant audits in process or completed.