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known. Barring no future changes, PRF dollars are to be applied in the order of:
1. Certain qualifying expenses that can be directly attributable to corona- virus; and
2. Lost revenues.
Of greatest importance is the under- standing that the use of these funds must be kept separate and distinct from the use of other coronavirus-relief aid. For example, if you report on the use of a personnel or payroll related expense, it cannot also be tied to dol- lars used in applying for PPP loan for- giveness. Essentially, a practice cannot ‘double-dip.’
Initially, reporting was set to begin back in the summer of 2020, which was then pushed to the fall of 2020 and then again to Jan. 15, 2021. However, because of updated legislation and a change in administration, reporting had been delayed even further. In late June 2021, the reporting requirements were finalized, and the reporting portal is now open to many, depending on when funds were received (see chart).
For all recipients of the fund, it is important to continue to monitor this process so that a reporting deadline
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looking to refinance their mortgage. “While it’s smart for people to refi-
nance their current debt to get a lower rate, it doesn’t necessarily create new funds for the bank,” Worden said.
In early 2020, Monson Savings opened a new branch in East Long- meadow to increase its access to more companies and consumers. Moriarty admitted he had some anxiety about the timing.
“We made the decision back when no one predicted the pandemic would last so long,” he said, noting that,
after a soft opening in August 2020, the branch has performed far above its forecasted numbers. “We’ve seen deposits increase 40% to 50% from when we opened.”
Bottom Line
All the bankers we talked with agreed the next three to six months will give everyone a better idea of where the economy, COVID, and the prospects for area banks are headed.
“I think we need to focus on getting through these next few months, and let’s get through the Delta variant,” Worden said. “We all have short-range goals, but we’re also keeping our eye on the long range.”
And that long-range forecast will hopefully call for taking that surge in deposits and putting it to work in ways that will bolster the local economy. u
is not missed. To stay on top of this process, the HHS has been updat- ing its site ( cares-act-provider-relief-fund/report- ing-auditing/index.html) with current regulations.
Audit Requirement
One stipulation, not known to many, is that a government single audit is required if the combined federal funds (PRF and other federal assistance) received were more than $750,000. Note that PPP funding does not count towards this total.
A single audit would be required of an organization that has $750,000 or
more in federal awards. While typically, federal funding is awarded to not-for- profits and governmental organiza- tions, the HHS PRF has opened many organizations, including for-profit medical practices, to these compli- ance requirements. If a practice has received combined federal awards though the Provider Relief Fund in excess of $750,000, a single audit will be required.
While the majority of relief pro- grams under the CARES Act (such as the Paycheck Protection Program) are subject to reporting requirements, the PRF has its own distinct rules to navi- gate. If your healthcare practice took
advantage of the PRF in any amount,
it is highly encouraged that you speak with an advisor as soon as possible
to fully understand the compliance requirements. Navigating federal com- pliance can be intimidating and confus- ing, especially if this is your first time doing so. Speaking with an advisor can demystify this process and help ensure that you understand the regulations. u
James T. Krupienski, CPA, MSA, is a partner in the Healthcare Services niche for Holyoke-based Meyers Brothers Kalicka, certified public accountants and business strategists; (413) 536-8510;
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