Title: 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.
De Minimis Rate Used: Y
Rate Explanation: Signature Healthcare Corporation and Affiliates have elected to use the 10--percent 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 Signature Healthcare Corporation and Affiliates under programs of the federal government for the year ended September 30, 2022. 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). Because the Schedule presents only a selected portion of the consolidated operations of Signature Healthcare Corporation and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Signature Healthcare Corporation and Affiliates.
Title: Relationship to Basic Consolidated Financial Statements
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.
De Minimis Rate Used: Y
Rate Explanation: Signature Healthcare Corporation and Affiliates have elected to use the 10--percent de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures of federal awards are reported on the consolidated statement of activities as operating expenses. In certain programs, the expenditures reported in the consolidated financial statements differ from the expenditures reported in the schedule of expenditures of federal awards. The Schedule includes expenses in the amount of $2,673,558 within Federal Assistance Listing Number (ALN) 97.036, which were incurred eligible expenses in a prior fiscal year and approved by Massachusetts Emergency Management Agency in fiscal 2022.
Title: Taxpayer Identification Numbers (TINs)
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.
De Minimis Rate Used: Y
Rate Explanation: Signature Healthcare Corporation and Affiliates have elected to use the 10--percent de minimis indirect cost rate allowed under the Uniform Guidance.
As detailed on the Schedule, the Corporation has reported federal expenditures of $22,015,380 within ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions. There are two entities that reported within that listing, (1) Brockton Hospital, Inc., TIN 222472997, $21,650,000 and (2) Signature Healthcare Medical Group, Inc., TIN 043306782, $365,380. The amount reported on the Schedule for the Provider Relief Fund program includes lost revenues of $22,015,380.
Title: Subsequent Events
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.
De Minimis Rate Used: Y
Rate Explanation: Signature Healthcare Corporation and Affiliates have elected to use the 10--percent de minimis indirect cost rate allowed under the Uniform Guidance.
Signature Healthcare Corporation and Affiliates has evaluated subsequent events occurring after the consolidated statement of financial position date of September 30, 2022 through the date of January 30, 2023, except for our report on the supplemental schedule of expenditures of federal awards, for which the subsequent events date is March 16, 2023, which is the date these consolidated financial statements were available to be issued. No events arose during the period that would require adjustment or additional disclosure, except for the following:On February 7, 2023, a fire occurred in the transformer room of Brockton Hospital at 680 Centre Street, Brockton Massachusetts. Due to this unforeseen event, Brockton Hospital temporarily closed and redeployed staff and equipment to other Signature Healthcare locations throughout the City of Brockton as well as to other nearby communities.Analysis of the losses to equipment, supplies and revenue are ongoing. Financial recovery is expected through comprehensive insurance and discussion continues with governmental agencies for additional resources, however, an estimate of any potential loss cannot be made at this time.