Notes to SEFA
Title: 2.
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Sharp HealthCare and is presented on the accrual basis of accounting. The information on 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 (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of Sharp HealthCare. For purposes of the Schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loan and loan guarantees, or other non-cash assistance. 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 federal awards subject to the requirements of the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, Sharp HealthCare did not make this election and uses a negotiated indirect cost rate.
The amount presented on the Schedule for Assistance Listing Number 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds) for the year ended September 30, 2022 includes $79,387,471 of PRF Funds received from Health and Human Services (HHS) between July 1, 2020 through June 30, 2021. In accordance with guidance from HHS, these amounts are presented as Periods 2 and 3 in the HHS PRF Reporting Portal. The $79,387,471 was recognized as other operating revenue in Sharps financial statements for the years ended September 30, 2020 and 2021. This amount is not the total PRF received and/or recognized by Sharp as other operating revenue in Sharps consolidated financial statements for the years ended September 30, 2020 and 2021. [See table in report]