Title: Federal Emergency Management Agency: Disaster Grants
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared to present a summary of those activities of The Cooper Health System (the Health System) for the year ended December 31, 2022, which have been financed by the U.S. Government. The Health System records expenditures of federal program funds 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 (the Uniform Guidance) and the City of Philadelphia Subrecipient Audit Guide. In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Notes 2 and 3). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the Health Systems consolidated financial statements. For the purpose of the Schedule, federal awards include all financial assistance relationships entered into directly between the Health System and the federal government; and subawards from non-federal organizations made under federally sponsored agreements. Federal awards have been classified as either direct (awards received directly from a federal agency) or pass-through awards (awards received from a non-federal agency). Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for Uniform Guidance awards. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election, however, the Health System did not make this election and uses a negotiated indirect cost rate in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Health System was reimbursed for certain expenditures related to the COVID-19 pandemic totaling approximately $41.7 million which were obligated for reimbursement under an award from the Federal Emergency Management Agency (FEMA) under the COVID-19 Disaster Grants Public Assistance (Presidentially Declared Disasters) program (Assistance Listing No. 97.036). This amount is included in the accompanying Schedule for the year ended December 31, 2022 in accordance with the guidance specific to Assistance Listing No. 97.036. FEMA projects are subject to final close-out reviews upon which amounts paid during the project are finalized.
Title: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distri
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared to present a summary of those activities of The Cooper Health System (the Health System) for the year ended December 31, 2022, which have been financed by the U.S. Government. The Health System records expenditures of federal program funds 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 (the Uniform Guidance) and the City of Philadelphia Subrecipient Audit Guide. In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Notes 2 and 3). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the Health Systems consolidated financial statements. For the purpose of the Schedule, federal awards include all financial assistance relationships entered into directly between the Health System and the federal government; and subawards from non-federal organizations made under federally sponsored agreements. Federal awards have been classified as either direct (awards received directly from a federal agency) or pass-through awards (awards received from a non-federal agency). Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for Uniform Guidance awards. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election, however, the Health System did not make this election and uses a negotiated indirect cost rate in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In accordance with the U.S. Department of Health and Human Services requirements specific to Federal Assistance Listing No. 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions, the amount presented on the accompanying Schedule for the year ended December 31, 2022 for Federal Assistance Listing No. 93.498 relates to (i) Provider Relief Fund (PRF) payments received from January 1, 2021 through December 31, 2021 (ii) used for PRF-eligible activity from the period January 1, 2020 through December 31, 2022. This payment receipt period and activity period and the resulting amount presented on the accompanying Schedule for the year ended December 31, 2022 reconciles to the PRF information previously reported to the Health Resources and Services Administration (HRSA) for PRF Reporting Periods 3 and 4 as follows:(see table in financial statements). The PRF-eligible expenses attributable to Coronavirus Disease 2019 (COVID-19) and lost revenues incurred by the Health System during the period of availability through PRF Reporting Period 4 (January 1, 2020 through December 31, 2022) are in excess of the distributions received in PRF Reporting Periods 1 and 2 (which addressed payments received during April 10, 2020 to December 31, 2020, and previously reported on the schedule of expenditures of federal awards for the year ended December 31, 2021) and distributions received in PRF Reporting Periods 3 and 4 (January 1, 2021 through December 31, 2021) and, therefore, the amounts presented in the table above and on the accompanying Schedule are limited to distributions received in PRF Reporting Periods 3 and 4.