Title: Basis of Presentation and Accounting
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the total consolidated expenditures of Care New England Health System and its affiliates (“Care New England”) under programs of the federal government for the year ended September 30, 2023. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Such expenditures are recognized following the cost principles contained in OASC-3, Department of Health and Human Services Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals, wherein certain types of expenditures are not allowable or are limited to reimbursement.
For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered directly by Care New England with agencies and departments of the federal government and all subawards to Care New England by nonfederal organizations pursuant to federal grants, contracts and similar agreements. Because the Schedule presents only the federal award activity of Care New England, it is not intended to and does not present the financial position, changes in net assets and cash flows of Care New England. Assistance listing numbers and pass through numbers are provided when available.
Title: Indirect Expenses
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
Indirect costs are charged to certain federal grants and contracts at federally approved predetermined indirect rates. Care New England has thus not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Funding from the U.S. Department of Housing and Urban Development
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
The Providence Center, Inc., whose sole corporate member is Care New England received funding from the U.S. Department of Housing and Urban Development (“HUD”) in both the current and prior years. The funding has been included in the accompanying schedule of expenditures of federal awards in consideration of the fact that the federal programs from which the funding originates imposes continuing compliance requirements on the use of the properties acquired and rehabilitated for specified periods ranging from 10 to 40 years. Those programs, include the following:
Entity Assistance Listing # Capital Advances
Grandview Second Corporation 14.181 $1,173,200
Wilson Street Apartments, Inc. 14.181 1,152,335
Wilson Street Apartments, Inc. 14.181 18,465
Nashua Street Corporation 14.181 834,200
Wilson Street Apartments, Inc. 14.181 84,942
Additionally, The Providence Center, Inc. paid off the mortgage note with HUD on the property during fiscal 2023.
Title: CARES Act Provider Relief Funds
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
4. CARES Act Provider Relief Funds
The Schedule includes grant activity related to the Department of Health and Human Services ("HHS") Provider Relief Fund and American Rescue Plan (ARP) Distribution Assistance Listing Number 93.498. As required based on guidance in the 2023 OMB Compliance Supplement, the Schedule includes all funds received between July 1, 2021 and June 30, 2022 and expended by September 30, 2023 as reported to HRSA via the Provider Relief Funding Reporting Portal.
During Reporting Period 4 and 5, Care New England received $2,232,370 and $7,814,748, respectively, of reportable Provider Relief Payments, all of which were recognized as revenue in prior Care New England financial statements. Thus, these payments are reconciling items between the federal expenses in Care New England's financial statements and the amount included on the Schedule.
Title: Division of Family Health (WIC) (Assistance Listing #10.557)
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
Care New England determines participant eligibility for receipt of food vouchers as part of the Special Supplemental Nutrition Program for the Women, Infants and Children program (Assistance Listing # 10.557). Of the $1,945,459 in expenditures presented in the Schedule, $444,888 represents direct costs incurred by Care New England for this program. The food vouchers for which Care New England determined eligibility for amounted to $1,500,571 for the year ended September 30, 2023.
Title: State of Rhode Island Pass-Through Funds for 10.553/10.555
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
Care New England expended $11,053 from the State of Rhode Island for the School Breakfast Program Assistance Listing #10.553/National School Lunch Program Assistance Listing #10.555. The State of Rhode Island did not provide Care New England with any information regarding how the spending should be allocated between the two Assistance Listing numbers. As such, expenditures under this program are commingled on the Schedule.
Title: FEMA Disaster Grants – Public Assistance – ALN 97.036
Accounting Policies: In compliance with Uniform Guidance (2 CFR §200.510(b)) The SEFA has been prepared for the same period and reporting entity and using the same underlying accounting records and financial statements.
De Minimis Rate Used: Both
Rate Explanation: Care New England used the the de minimus rate of 10% only for its entities that do not have a negotiated indirect cost rate agreement (NICRA)
Care New England applied for reimbursement of certain expenses related to the COVID-19 pandemic under Assistance Listing #97.036, FEMA Public Assistance through the State of Rhode Island. Expenditures are reflected in the Schedule of Expenditures of Federal Awards (SEFA) in the year in which a project application is obligated. The SEFA thus includes $8,669,486 of expenditures incurred in fiscal years 2020 through 2023, which were obligated in 2023.