Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Consolidated 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 has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying consolidated schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Health Services Management, Inc. and Subsidiaries (the “Organization”) under programs of the federal government for the year ended December 31, 2022. The information in the Consolidated Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (“CRF”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Consolidated 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 3 - SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Consolidated 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 has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The Organization has not passed any federal awards through to subrecipients for the year ended December 31, 2022.
Title: NOTE 4 - U.S. DEPARTMENT OF HOUSEING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: Expenditures reported on the Consolidated 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 has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The Organization had received U.S. Department of Housing and Urban Development direct loans under Section 232 of the National Housing Act for ten of their facilities. The Organization received no additional loans during the year. Information related to these single audits, including the schedules of expenditures of federal awards, findings and recommendations, and independent auditors' reports on the internal control structure and compliance with applicable laws and regulations, are not included herein but are reported separately.
Title: NOTE 5 - PROVIDER RELIEF FUND
Accounting Policies: Expenditures reported on the Consolidated 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 has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
Based on guidance from the Department of Health and Human Services (“HHS”), the Provider Relief Fund and American Rescue Plan ("ARP") Rural Distribution (collectively, “PRF”) are reported on the Schedule as the funds are reported to HHS through the Provider Relief Funding Portal. Therefore, the amount of PRF expenditures included on the Schedule at December 31, 2022 are based upon the PRF reporting portal guidelines for Period 3 and Period 4 reporting, as specified by HHS. Reporting Periods 3 and 4 include PRF receipts from January 1, 2021 to December 31, 2021, for qualifying expenditures during the period of January 1, 2020 through December 31, 2022.