Title: Basis of presentation
Accounting Policies: 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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state awards of Newark Community Health Centers, Inc. ("NCHC") under programs of the federal and New Jersey state governments for the year ended December 31, 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") and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedule presents only a selected portion of the operations of NCHC, it is not intended to and does not present the financial position, change in net assets, or cash flows of NCHC.
Title: Indirect cost rate
Accounting Policies: 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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NCHC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Preventive and primary care program
Accounting Policies: 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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NCHC contracted with the State of New Jersey Department of Health and Senior Services to provide health and medical services to the uninsured population under the Preventive and Primary Care Program. This letter of agreement pays NCHC a fixed amount per visit regardless of the actual costs incurred. During the year ended December 31, 2022, the amount earned and recognized as net revenue under this letter of agreement for the contract period July 1, 2021 to June 30, 2022 was $833,731 and for the contract period July 1, 2022 to June 30, 2023 was $872,308.Revenue for this program is included in patient services revenue in the basic financial statements. Allowances are calculated based on expected cash collections.
Title: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distri
Accounting Policies: 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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the DHHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, DHHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from DHHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability).The Schedule includes $128,304 received from DHHS on December 16, 2021. In accordance with guidance from DHHS, this amount represents $128,304 for Period 4 and was recognized as DHHS grant revenue in the financial statements for the year ended December 31, 2021.
Title: COVID-19 - HRSA COVID-19 Claims Reimbursement for the Uninsured Program and
Accounting Policies: 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 and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the DHHS award related to the HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund program (the Uninsured/CAF Program), the amount on the Schedule relates to the amount of revenue recognized in the financial statements during the year ended December 31, 2022.