Notes to SEFA
Title: Note 1—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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
The Organization did not expend any federal awards during the year ended June 30, 2023 in the form of noncash assistance.
De Minimis Rate Used: N
Rate Explanation: The Organization expended indirect costs using a multiple allocation base method and did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Mercy Health Services, Inc. (the “Organization”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) as codified by DHHS at 45 CFR Part 75 and the state of Tennessee. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 4—Subrecipients
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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
The Organization did not expend any federal awards during the year ended June 30, 2023 in the form of noncash assistance.
De Minimis Rate Used: N
Rate Explanation: The Organization expended indirect costs using a multiple allocation base method and did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance.
The Organization did not have expenditures to subrecipients during the year ended June 30, 2023.
Title: Note 5—Contingencies
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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
The Organization did not expend any federal awards during the year ended June 30, 2023 in the form of noncash assistance.
De Minimis Rate Used: N
Rate Explanation: The Organization expended indirect costs using a multiple allocation base method and did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance.
These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determine at this time, although the Organization expects such amounts, if any, to be immaterial.
Title: Note 6—Provider Relief Funds
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, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
The Organization did not expend any federal awards during the year ended June 30, 2023 in the form of noncash assistance.
De Minimis Rate Used: N
Rate Explanation: The Organization expended indirect costs using a multiple allocation base method and did not elect to use the 10% de minimis cost rate allowed under the Uniform Guidance.
In accordance with the 2022 Compliance Supplement Addendum dated April 2022 as issued by the Office of Management and Budget, the Organization did not report any Provider Relief Funds expenditures on the Schedule for the year ended June 30, 2022. The Organization reported $293,532 in its Schedule for the year ended June 30, 2023 that were reported in its statement of activities for the year end June 30, 2022 relating to the Provider Relief Funds.