Notes to SEFA
Title: Note 3: Discontinued Operations
Accounting Policies: GeneralArkansas 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 PresentationThe accompanying Schedule is prepared in accordance with accounting principles generally accepted in the United States of America. Because the Schedule presents only a portion of the Companies revenue, 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: Arkansas Elder Outreach 61-1438402 Encore Healthcare, LLC 82-3341695 Pleasant Valley Nursing, LLC 82-3366114 Willowbend at Marion, LLC 82-3370012 Three Rivers Healthcare and Rehabilitation, LLC 82-3405961Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498For 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 Periods deadline to use the funds (i.e., after the end of the period of availability).The Schedule includes $818,402 received from HHS between January 1, 2021 through June 30, 2021. In accordance with guidance from HHS, these amounts are reported in Period 3. Such amounts were recognized as grant revenue Provider Relief Fund in the Companies financial statements as shown in the Schedule in the years ended December 31, 2021 and December 31, 2022. Due to the PRF Reporting requirements, these amounts are not the total PRF received and/or recognized as grant revenue Provider Relief Fund in the years presented in the Schedule.Use of EstimatesThe preparation of the Schedule in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount in the Schedule during the reporting period. Actual results could differ from those estimates.Subsequent EventsThe Schedule and related disclosures include evaluation of events through September 22, 2023, which is the date the Schedule was available to be issued.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
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 $373,462. Encore Healthcare, LLC did not receive PRF funds for Period 3 and as such no costs were incurred. Pleasant Valley, LLC EIN 82-3366114 $196,807 Willowbend at Marion, LLC EIN 82-3370012 $99,926 Three Rivers Rehabilitation EIN 82-3405961 $76,729.