Title: Note 1. General
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Care under programs of the federal government for the year ended December 31, 2022. 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 Care, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Care.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Care Initiatives and Subsidiaries and Affiliate (Care) is a charitable and benevolent nonprofit corporation whose purpose is to operate its 43 Iowa nursing homes, eight assisted living locations, six hospice agencies and three senior apartment complexes for the benefit of its residents, their families and their communities. Federal funds were received in awards from the U.S. Department of Health and Human Services (HHS) through federal programs established by legislation in response to COVID-19 pandemic, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan (ARP).
Title: Note 2. Basis of Presentation and Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Care under programs of the federal government for the year ended December 31, 2022. 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 Care, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Care.
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 (the Schedule) includes the federal grant activity of Care under programs of the federal government for the year ended December 31, 2022. 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 Care, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Care.
Title: Note 3. Provider Relief Fund
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Care under programs of the federal government for the year ended December 31, 2022. 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 Care, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Care.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the federal awards related to the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to ‘Payment Received Periods’ (each, a Period) based upon the date each payment was received. Each Period has a specified Period of Availability and timing of reporting requirements. Care is required to submit reports into the HRSA PRF Reporting Portal after each Period’s deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $6,671,091 of Period 3 and Period 4 distributions received from HHS between January 1, 2021 through December 31, 2021 and reported by Care in the HRSA PRF Reporting Portal as used during the corresponding Periods of Availability in accordance with HHS guidance. Due to the PRF reporting requirements, this amount is not the total PRF received and recognized as grant revenue in Care’s consolidated financial statements. PRF distributions recognized as grant revenue in Care’s consolidated statements of operations and changes in net assets and investor member equity for the years ended December 31, 2022 and 2021, totaled as follows: (See the Notes to the SEFA for table)
Title: Note 4. Indirect Costs and Noncash Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Care under programs of the federal government for the year ended December 31, 2022. 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 Care, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Care.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Care has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, Care did not receive noncash assistance relating to any federal programs.