Notes to SEFA
Title: Loan Programs
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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 auditee did not use the de minimis cost rate.
Expenditures reported in this schedule related to the Department of Agriculture Loans consist of the beginning of the year outstanding loan balances plus advance made on the loans during the year. The outstanding balance as of June 30, 2022 was $5,199,589.
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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 auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hill Top Home of Comfort, Inc. under programs of the federal government for the year ended June 30, 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 Hill Top Home of Comfort, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hill Top Home of Comfort, Inc.
Title: Provider Relief Funds
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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 auditee did not use the de minimis cost rate.
The Home received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (PRF) program. The PRF expenditures were recognized on the Schedule when the expenditures were included in the reporting to HHS for Period 2 and Period 3, defined as payments received between July 1, 2020 and June 30, 2021. As the total amount of $174,470 was included on the Period 2 and Period 3 reports submitted to HHS, that amount is shown on the accompanying Schedule. The total amount of PRF expenditures included on the SEFA requires management to make estimates and assumptions that affect the reports 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 and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.