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Notes to Financial Statements <br /> Page 3 <br /> Intangible Assets <br /> Loan acquisition cost is amortized over the life of the related <br /> loans, five to 20 years, respectively, on a straight-line <br /> basis. <br /> Revenue <br /> Grants-- <br /> The Organization recognizes Federal grant awards to the extent <br /> that allowable grant expenses have been incurred. Federal <br /> grant funds received prior to incurring allowable grant program <br /> expenses are recorded as deferred grant revenue. Deferred <br /> grant revenue balance at the grant program ending date is <br /> refundable to the Federal government or may be carried over to <br /> the subsequent grant period at the discretion of the Federal <br /> government. <br /> Third-party Contractual Adjustments-- <br /> Retroactively calculated third-party. contractual adjustments <br /> are accrued on an estimated basis in the period the related <br /> services are rendered. Net patient service revenue is adjusted <br /> as required in subsequent periods based on final settlements. <br /> Net Patient Service Revenue-- <br /> Patient service revenue is reported at the estimated. net <br /> realizable amounts from patients, third-party payors, and <br /> others for services rendered. <br /> Other Revenue-- <br /> Other revenue results from various health center program <br /> services and activities. These amounts were used primarily to <br /> meet the funding source matching or cost sharing requirements. <br /> Subject to the provisions of grant agreements, revenues <br /> realized in excess of the required matching or cost sharing <br /> amount may be utilized to absorb program costs currently or <br /> may be carried over to subsequent grant periods. <br /> Charity Care-- <br /> The Organization has a policy of providing charity care . to <br /> patients who are unable to pay. Such patients are -identified, <br /> and related charges are estimated based on financial <br /> information obtained from the patient and subsequent analysis. <br /> Since management does not expect payment for charity care, the <br /> estimated charges are excluded from revenue. <br /> -16- <br />