Title: NOTE 1 - Basis of Presentation
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
Title: NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Title: Scope of Presentation
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Title: Basis of Accounting
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available
Title: Indirect Cost Rate
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
See the Notes to the SEFA for chart/table
Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Accounting Policies: NOTE 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Virginia Association of Recovery Residences, Inc. (“VARR”) under programs of federal government for the years ended December 31, 2022 and 2021. 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 Virginia Association of Recovery Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Virginia Association of Recovery Residences, Inc. Additionally, some of the amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the financial statements.
NOTE 2 - Summary of Significant Accounting Policies Applicable to the Schedule of Federal Awards
Scope of Presentation
The accompanying schedule presents the expenses incurred by VARR that are reimbursable under federal programs of federal financial assistance. Additionally, information is also presented that will allow a user to identify programs that can be reconciled with financial statements.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass‐through entity identifying numbers are presented where available.
Indirect Cost Rate
The VARR has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
VARR has been appropriated $10,000,000 allocated to it by the Commonwealth of Virginia’s General Assembly from the COVID-19 Coronavirus State and Local Fiscal Recovery Fund (21.027) (“CSLFRF” or “funds”). These American Rescue Plan Act (“ARPA”) of 2021 funds are to be spent from September 1, 2021, through December 31, 2024. The funds are passed through from the Virginia Department of Behavioral Health Development Services (“DBHDS”) to VARR as a subrecipient. Then VARR passes through to its other subrecipients also known as beneficiaries when certain conditions have been met to allow barriers to be met to qualify for disbursement. VARR has received funds in advance of being able to spend and meet the federal barriers of income recognition because the intended other subrecipient has not achieved its barriers to entitle it to support and therefore revenue is deferred until such barriers are identified allowing expenditures to be made to the intended other subrecipient (beneficiary). Of the $10,000,000 appropriated and allocated to VARR by the Virginia General Assembly, the funds expended by VARR with its Recovery Community Organizations, also known as beneficiaries or RCOs are as follows:
Indigent Bed Disbursement funding and Program Addiction Management $ 6,164,000
Capacity Expansion, Minority Ownership/Mentorship 3,036,000
VARR organization costs estimated at 800,000
Total Virginia Subrecipient Funding Agreement related to VARR’s 3- year funding $ 10,000,000
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: indirect costs not requested. Auditee used actual costs and did not use the de minimus cost rate. Under Appendix IV to Part 200, 2 CFR Appendix-III-to-Part-200 2.e.(iii) the organization's operations fluctuate significantly from year to year. This is the case in the early stage of the organization's current level of operations.
At December 31, 2022, COVID-19 CSLFRF funds awarded accumulated to $7,002,869 which included $3,333,333 from 2022 and 2021, and an additional $336,203 in unused funds from DBHDS’ fiscal year accounting of the 2021 unspent funds at June 30, 2022 to be carried forward to the June 30, 2023 fiscal year. At December 31, 2022, audited accrual basis funds unspent and deferred from the initial award were $341,454. Overspent funds from the VARR 2023 $1,000,000 award that are expected to be funded in 2023 are $116,694 and accounted for and included in accounts and grants receivable as of December 31, 2022.