Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
General
Arkansas Elder Outreach of Little Rock, Inc. (the Companies) is a non-profit organization that operates nine skilled nursing facilities located throughout Louisiana and Arkansas. The Companies’ received grant proceeds under the Provider Relief Fund. The Provider Relief Fund, established as part of the Coronavirus Aid, Relief and Economic Security Act Funding (CARES ACT), provides grants to Medicare providers.
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the Companies under programs of the federal government for the year ended December 31, 2023. Information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of the Companies; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Companies.
The Schedule includes the Provider Relief Fund activity for the following entities:
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution – Assistance Listing Number 93.498
For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting 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 HRSA PRF Reporting Portal after each Period’s deadline to use the funds (i.e., after the end of the period of availability).
The Schedule includes $2,272,976 received from HHS between January 1, 2022 through June 30, 2022. In accordance with guidance from HHS, these amounts are reported in Period 5. The Schedule includes $370,919 received from HHS between July 1, 2022 through December 31, 2022. In accordance with guidance from HHS, these amounts are reported in Period 6.
The reporting period for PRF differs from the fiscal year end of the Companies. Below is a reconciliation of the Schedule of Expenditures of Federal Awards to the grant revenues as presented on the combined statement of activities of the Companies as of December 31, 2023.
Title: NOTE 2 - INDIRECT COST RATE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
Administrative overhead costs charged to contracts vary by funding source as agreed to within the contract, and therefore, the Companies’ have elected not to use the 10% de minimis indirect cost rate.
Title: NOTE 3 - LOAN
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
The Companies did not expend federal awards related to loans or loan guarantees during the year.
Title: NOTE 4 - FEDERALLY FUNDED INSURANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
The Companies have no federally funded insurance.
Title: NOTE 5 - NONCASH ASSISTANCE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
The Companies did not receive any federal noncash assistance for the fiscal year ended December 31, 2023.
Title: NOTE 6 - DISCONTINUED OPERATIONS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes
the Federal award activity of the Companies under programs of the federal government for
the year ended December 31, 2023. Information in the Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the
operations of the Companies; accordingly, it is not intended to and does
De Minimis Rate Used: N
Rate Explanation: N/A
On August 15, 2022, Arkansas Elder Outreach (AEO) disposed of their assets and related operations for Encore Healthcare, LLC, Pleasant Valley Nursing, LLC, Willowbend at Marion, LLC, and Three Rivers Rehabilitation, LLC. The costs incurred for the entities listed above were incurred prior to the sale and are included in the Schedule. The total amount reported in the Schedule from these entities was $1,858,707.