Title: GENERAL
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
Health Services Management, Inc. (the “Company”) is a Tennessee nonprofit corporation that provides management services to and is the parent organization of subsidiaries that provide care for indigent and elderly individuals in nursing home facilities in Florida and Texas, and an assisted living facility in Tennessee. The Company received federal funds from the U.S. Department of Health and Human Services (“HHS”) Provider Relief Fund (“PRF”), a federal program established by legislation issued in response to the COVID-19 pandemic (e.g., Coronavirus Aid, Relief, and Economic Security (“CARES”) Act or the American Rescue Plan).
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
The information in this Schedule of Expenditures of Federal Award (the “Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and accounting principles generally accepted in the United States of America. Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not represent the financial position, changes in net assets, or cash flows of the Company.
Title: PROVIDER RELIEF FUND – ASSISTANCE LISTING NUMBER 93.498
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
For the HHS PRF award, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources & Services Administration (“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). The Schedule includes funds received as a general distribution from HHS between January 1, 2022 and June 30, 2022. In accordance with guidance from HHS, these amounts are presented as Period 5. Such amounts were recognized as grant revenue in the Company’s financial statements in the year ended December 31, 2022.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: ESTIMATES
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
The preparation of the Schedule in conformity with the 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: INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
The Company has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: CONTINGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
PRFs received by the Company are for specific purposes and are subject to review by HHS. Such audits may result in requests for reimbursement due to disallowed expenditures. The Company does not believe that such disallowances, if any, would have a material effect on the Schedule.
Title: SUBSEQUENT EVENTS
Accounting Policies: Expenditures reported on the Schedule are reported using the accrual basis of accounting. The expenditures reported on the Schedule for Assistance Listing Number 93.498 represent expenditures incurred during the periods of availability of January 1, 2020 through June 30, 2023. 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 Systems, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No cost rate needed
The Schedule and related disclosures include evaluation of events through September 13, 2024, which is the date the Schedule was available to be issued.