The CARES Act allocated $175 billion in grants to support hospital and healthcare providers on the front lines of the coronavirus response to recover lost revenue and increased expenses as a result of the pandemic.
Certain grants do not require repayment just as long as the recipient submits documentation sufficient to ensure that the funds were used for healthcare-related expenses or lost revenue attributable to the coronavirus and expended by June 30, 2021. Appropriate records and cost documentation should be maintained for potential audit.
All recipients of Provider Relief Fund payments are required to comply with reporting requirements issued by the U.S. Department of Health and Human Services (HHS).
Entities that received Annual Grants of $750,000 or more require a Single Audit to be submitted to HHS. A Single Audit is a financial statement and Federal awards’ audit provided by an independent certified public accounting firm to ensure that adequate internal controls are in place and the organization is in compliance with program requirements.
Please also note that the grants that do not require repayment are considered taxable income under the Internal Revenue Code.
If you have any questions regarding CARES Act Provider Relief Fund or need assistance regarding the Single Audit requirement, please contact your Wright Ford Young & Co. advisor or contact us here to discuss further.