Audit 5915

Title: ENDING LOAN BALANCE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Berkshire Retirement Home, Inc. under programs of the federal government for the year ended May 31, 2023. 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 operations of Berkshire Retirement Home, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Berkshire Retirement Home, Inc. 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: Berkshire Retirement Home, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The ending balance in the Section 232 loan was $10,924,854 at May 31, 2023.

Title: RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Berkshire Retirement Home, Inc. under programs of the federal government for the year ended May 31, 2023. 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 operations of Berkshire Retirement Home, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Berkshire Retirement Home, Inc. 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: Berkshire Retirement Home, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The financial statements reflect revenue recognized from the Provider Relief Fund (PRF) of $-0- and $45,407 for the years ended May 31, 2023 and 2022, respectively. The SEFA includes Provider Relief Funds of $67,924 that were received in PRF Period 3 and Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.