Title: Note 3. Subrecipients
Accounting Policies: Note 1. Basis of Presentation
The accompanying schedule of expenditures of federalawards (the Schedule) includes the federal award activity of Frances House, Inc. (FHI), and its subsidiaries, Pinnacle Opportunities, Inc. (PIN), Pioneer Concepts, Inc. (PIO), and Residential Alternatives of Illinois, Inc. (RAI) (collectively the “Organization”)under programs of the federal government for the year ended March 31, 2023. Accounting principles inthe United States of America require the financial statements of Frances House, Inc., Pinnacle Opportunities, Inc., Pioneer Concepts, Inc., and ResidentialAlternatives of Illinois, Inc. to be consolidated for financial reporting purposes. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal RegulationsPart 200,Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe Organization, it is not intended to and does not present the financial position, changes in netassets or cash flows of the Organization.
Note 2. Summary of Significant 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
None of the Organization’s federal awards expenditures were provided to subrecipients during the year ended March 31, 2023.
Title: Note 4. Noncash Assistance, Insurance and Loan Guarantees
Accounting Policies: Note 1. Basis of Presentation
The accompanying schedule of expenditures of federalawards (the Schedule) includes the federal award activity of Frances House, Inc. (FHI), and its subsidiaries, Pinnacle Opportunities, Inc. (PIN), Pioneer Concepts, Inc. (PIO), and Residential Alternatives of Illinois, Inc. (RAI) (collectively the “Organization”)under programs of the federal government for the year ended March 31, 2023. Accounting principles inthe United States of America require the financial statements of Frances House, Inc., Pinnacle Opportunities, Inc., Pioneer Concepts, Inc., and ResidentialAlternatives of Illinois, Inc. to be consolidated for financial reporting purposes. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal RegulationsPart 200,Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe Organization, it is not intended to and does not present the financial position, changes in netassets or cash flows of the Organization.
Note 2. Summary of Significant 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization did not receive any noncash awards for surplus property, interest rate subsidies,insurance awards or other noncash awards during the fiscal year ended March 31, 2023.
Three subsidiaries of the Organization have a mortgage loan guaranteed by the U.S. Department of Housing and Urban Development, which have anaggregate outstanding balance of $35,298,399 atMarch 31, 2023. Each of these loans is subject toa standalone audit under the requirements of Title 2 U.S.Code of Federal RegulationsPart 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is therefore excluded from the Schedule.
Title: Note 5. Indirect Cost Rate
Accounting Policies: Note 1. Basis of Presentation
The accompanying schedule of expenditures of federalawards (the Schedule) includes the federal award activity of Frances House, Inc. (FHI), and its subsidiaries, Pinnacle Opportunities, Inc. (PIN), Pioneer Concepts, Inc. (PIO), and Residential Alternatives of Illinois, Inc. (RAI) (collectively the “Organization”)under programs of the federal government for the year ended March 31, 2023. Accounting principles inthe United States of America require the financial statements of Frances House, Inc., Pinnacle Opportunities, Inc., Pioneer Concepts, Inc., and ResidentialAlternatives of Illinois, Inc. to be consolidated for financial reporting purposes. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal RegulationsPart 200,Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe Organization, it is not intended to and does not present the financial position, changes in netassets or cash flows of the Organization.
Note 2. Summary of Significant 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization has not yet elected to use the 10%de minimis indirect cost rate as allowed under Uniform Guidance.
Title: Note 6. Provider Relief Fund
Accounting Policies: Note 1. Basis of Presentation
The accompanying schedule of expenditures of federalawards (the Schedule) includes the federal award activity of Frances House, Inc. (FHI), and its subsidiaries, Pinnacle Opportunities, Inc. (PIN), Pioneer Concepts, Inc. (PIO), and Residential Alternatives of Illinois, Inc. (RAI) (collectively the “Organization”)under programs of the federal government for the year ended March 31, 2023. Accounting principles inthe United States of America require the financial statements of Frances House, Inc., Pinnacle Opportunities, Inc., Pioneer Concepts, Inc., and ResidentialAlternatives of Illinois, Inc. to be consolidated for financial reporting purposes. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal RegulationsPart 200,Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe Organization, it is not intended to and does not present the financial position, changes in netassets or cash flows of the Organization.
Note 2. Summary of Significant 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: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the federal awards related to the ProviderRelief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution (ALN 93.498) program,the U.S. Department of Health(HHS) has indicated the amounts on the schedule be reported corresponding to reporting requirements of the HRSA Provider Relief Fund 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. Entities report into the HRSA PRF Reporting Portal after each Period’s deadline touse the funds (i.e., after the end of the Period of Availability).
The accompanying schedule of expenditures offederal awards includes $190,229 of Period 3distributions received from HHS between January1, 2021, through June 30, 2021 and reported by the Organization in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability in accordance with guidance from HHS. This amountwas recognized as other operating revenue in the Organization’s financial statements for the year ended March 31, 2021. The Schedule also includes$1,309,243 of Period 4 distributions received fromHHS between July 1, 2021, through December 31,2021 and reported by the Organization in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability in accordancewith guidance from HHS. This amount was recognized as other operating revenue in the Organization’s financial statements for the year ended March 31, 2022.