Title: Note 1 - Basis of Presentation
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The accompanying Schedule of Expenditures of Federal Award (the “SEFA”) includes the federal award of Alliance Foundation of FL Inc. – Indigo Manor (the “Organization”) under the Department of Health and Human Services (“HHS”) Provider Relief Fund (“PRF”) for the year ended December 31, 2021. The information in the SEFA is presented in accordance with the require-ments 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 SEFA presents only a select 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 2 - Provider Relief Fund (COVID-19) Assistance Listing Number 93.498
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
For the HHS award related to the PRF, HHS has indicated the amounts on the SEFA be reported corresponding to reporting requirements of the Health Resources & Services Administrator (“HRSA”) PRF Reporting Portal (the “Portal”). Payments from HHS for PRF are assigned to ‘Payment Received Periods’ (each, a “Period”) based upon the date each payment from the PRF was received. Each Period has a specified period of availability and timing of reporting requirements. Entities report into the Portal after each Period’s deadline to use the funds (i.e., after the end of the period of availability).
Title: Note 3 - Summary of Significant Accounting Policies
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Expenditures reported on the SEFA are reported using the accrual basis of accounting. The amount of expenditures reported on the SEFA for Assistance Listing Number 93.498 represents expend-itures incurred during the periods of availability of January 1, 2020 through June 30, 2021, for Period 1 and January 1, 2020 through December 31, 2021, for Period 2. Such expenditures are recognized following, either the cost principles in the Office of Management and Budget and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. During the pandemic, the Organization sealed off a portion of its operating facility as a designated COVID wing. The cost of staffing and securing the COVID wing as well as certain other costs were directly identified, and certain other costs were allocated using the percentage of COVID wing square footage to the entire facility square footage.
The building in which the Organization operates is owned by an entity that is also controlled by the not-for-profit parent of the Organization.
Title: Note 4 - Indirect Cost Rate
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Organization has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 5 - Estimates
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The preparation of the SEFA in conformity with Uniform Guidance and accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount during the reporting period. Actual results could differ from those estimates.
Title: Note 6 - Subsequent Events
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The SEFA and related disclosures include evaluation of events through March 20, 2024, which is the date the SEFA was available to be issued. As a result of Hurricanes Ian, Nicole, and Idalia, each major natural disasters, this audit was issued after the initial due date but as soon as practicable. The Organization’s skilled nursing home, Indigo Manor, Inc. sold the nursing home in October 2021 and entered into bankruptcy in March 2022.
Title: Note 7 - Contingencies
Accounting Policies: GAAP, Uniform Guidance, GAS
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
PRFs received by the Organization are for specific purposes and are subject to review by HHS. Such audits may result in requests for reimbursement due to disallowed expenditures. The Organization believes it is in compliance with the requirements of the PRF program.