The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Signature Healthcare Corporation and Affiliates (collectively, the “Corporation”) under programs of the federal government for the year ended September 30, 2025. 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.
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.
Signature Healthcare Corporation and Affiliates has elected to use the 10percent 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 $5,923,566 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 year 2025.
Signature Healthcare Corporation and Affiliates has evaluated subsequent events occurring after the consolidated statement of financial position date of September 30, 2025 through the date of January 28, 2026, except for our report on the supplemental schedule of expenditures of federal awards, for which the subsequent events date is May 14, 2026, which is the date these consolidated financial statements were available to be issued. On October 27, 2025, the Corporation received a recoupment notice from the Federal Emergency Management Agency (“FEMA”) in the amount of $5,859,878. The recoupment was the result of potential duplication of payments related to benefits received by the Corporation. The recoupment related to payments previously and currently recognized on the Corporation’s schedule of expenditures of federal awards. As a result of the recoupment letter, the Corporation recorded a recoupment liability of $5,859,878 on the consolidated balance sheets as of September 30, 2025. The Corporation experienced a cyber event in April 2026. Management is currently evaluating and responding to the incident to determine the impact the incident may have on its operations.