Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported on the 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, with the exception of the matter discussed in Note 4 below.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Charles County Nursing and Rehabilitation Center, Inc. (the Organization) under the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) of the federal government for the year ended June 30, 2021. The information in this schedule 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), with the exception of the matter discussed in Note 5 below. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, results of operations, changes in equity, or cash flows of the Organization.
Title: Note 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the 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, with the exception of the matter discussed in Note 4 below.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the 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, with the exception of the matter discussed in Note 5 below.
Title: Note 3. Indirect Cost Rate
Accounting Policies: Expenditures reported on the 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, with the exception of the matter discussed in Note 4 below.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4. Entities Included in the Schedule
Accounting Policies: Expenditures reported on the 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, with the exception of the matter discussed in Note 4 below.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule includes the following entity as identified by individual tax identification number (TIN) and entity name:
Entity Name: Charles County Nursing and Rehabilitation Center, Inc.
TIN #: 521071433
Title: Note 5. Provider Relief Fund and Rural Distribution Program
Accounting Policies: Expenditures reported on the 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, with the exception of the matter discussed in Note 4 below.
De Minimis Rate Used: N
Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The total PRF Program expenditures on the schedule includes $904,158 of lost revenues which is reported in accordance with the terms and conditions included in the Health Resources and Services Administration (HRSA) Post-Payment Notice of Reporting Requirements specific to the PRF Program. Lost revenue is not a permitted concept under U.S. GAAP. Therefore, an adverse opinion due to a U.S. GAAP departure has been issued on the schedule.