In response to the COVID-19 pandemic, $178 billion of Provider Relief Funds (PRF) were distributed to healthcare providers from the Department of Health and Human Services under the Coronavirus Aid, Relief, and Economic Security Act.
Recipients with expenditures of PRF funds totaling $750,000 or more are subject to a single audit or a program-specific audit. As a result, not-for-profit entities will need to include the PRF funds along with other federal awards when determining the need for a single audit and an audit may be required for the first time for many for-profit healthcare entities, including inpatient/outpatient clinics, hospitals, and medical providers.
These audits are due nine months after the entity’s fiscal year-end with a three-month extension for those organizations whose audit reports were originally due between October 1, 2020, through June 30, 2021.
Start preparing now! Call us for assistance in determining how PRF expenditures may impact your entity’s need for an audit.
For more information about COVID-19 tax relief measures and other issues, visit the special section on our website.