Title: Basis of Presentation
Accounting Policies: Expenditures are reported in the SEFA on the accrual basis of accounting in accordance with the HRSA terms and conditions for PRF funding. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Lost revenues are reported based on the HRSA Option 3 reporting of lost revenues by using any reasonable method of estimating lost revenues. The Community compared actual revenues by quarter during the period of availability to budgeted revenues. Both actual revenues and budgeted revenues excluded the impact of a recently completed expansion project in order to arrive at a more meaningful lost revenue calculation. As the budget for the last three quarters of the period of availability was not approved prior March 2020, the Community used budgeted amounts as shown below: Actual RevenuesApproved budget January 1, 2020 through March 31, 2020January 1, 2020 through March 31, 2020April 1, 2020 through June 30, 2020April 1, 2020 through June 30, 2020July 1, 2020 through September 30, 2020July 1, 2020 through September 30, 2020October 1, 2020 through December 31, 2020October 1, 2020 through December 31, 2020January 1, 2021 through March 31, 2021January 1, 2021 through March 31, 2021April 1, 2021 through June 30, 2021April 1, 2020 through June 30, 2020July 1, 2021 through September 30, 2021July 1, 2020 through September 30, 2020October 1, 2021 through December 31, 2021October 1, 2020 through December 31, 2020Expenditures and lost revenues for PRF are based upon the PRF reports for the year ended March 31, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Moravian Home, Incorporated (d/b/a Salemtowne) (the Community) under the programs of the federal government. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly and indirectly from federal agencies are included in this SEFA. Because the SEFA presents only a selected portion of the operations of the Community, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Community. As outlined in the July 2021 OMB Compliance Supplement, the amounts reported in the accompanying SEFA related to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498, are reported based upon the PRF reporting portal submission guidelines established by the U.S. Department of Health and Human Services, Health Resource and Service Administration (HRSA). Separate reporting periods were established by HRSA based on the dates of receipt of PRF payments. Each reporting period has a specific period of availability which begins on January 1, 2020 and extends through specified deadlines, as indicated below:The accompanying SEFA includes those qualifying expenditures and lost revenues that were reported in the HRSA PRF portal for Period 1 and Period 2. Of that amount, approximately $962,000 in PRF payments was recognized by the Community in their statement of operations as other income during the fiscal year ended March 31, 2021.