Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Federal Financial Assistance Listing #93.461), which is based on when the claim is eligible evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority does not draw for indirect administrative expenses and had not elected to use the 10% de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of The Cleveland Area Hospital Authority d/b/a Cleveland Area Hospital Trust Authority (Authority) under programs of the federal government for the year ended December 31, 2022. The information 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). Because the schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Provider Relief Funds
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Federal Financial Assistance Listing #93.461), which is based on when the claim is eligible evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The Authority does not draw for indirect administrative expenses and had not elected to use the 10% de minimis cost rate.
The Authority received $-0- and $656,474 from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (Federal Financial Assistance Listing #93.498) (PRF program) during the years ended December 31, 2022 and 2021, respectively. The Authority incurred eligible expenditures, including lost revenue, and therefore, recognized revenues on the financial statements during the years ended December 31, 2022 and 2021 as noted below. In accordance with the 2022 compliance supplement, the PRF program expenditures recognized on the schedule are based on reporting to HHS for Period 4, defined as payments received between July 1, 2021 and December 31, 2021 totaling $656,474, plus interest earned of $3,541.The following summarizes the timing of when the PRF and ARP Rural Distribution program amounts were recognized in the financial statements.[SEE CHART]The amount of PRF and ARP Rural Distribution expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources, estimating expenses related to coronavirus and the calculation of lost revenue. Actual results could differ from those estimates.