The Biden administration recently announced Phase 4 of the Provider Relief Fund (PRF) disbursements for a broad range of providers who can document lost revenues and changes in operating expenditures between July 1, 2020, and March 31, 2021. Here are some tips to help you prepare your application.
Register your organization on the Provider Relief Fund portal, which is where you will apply for and attest to relief fund payments. The application portal opens September 29. To prepare for your Phase 4 application, we recommend you accumulate the following trial balances or P&Ls for these date ranges:
Using these reports, you would calculate the following, as these items may be required on the application:
There are terms, conditions and reporting requirements if you received prior PRFs.
In prior phases, recipients generally have 12 to 18 months to exhaust these funds for allowable purposes. In most cases, the applicant can apply expenses incurred prior to the payment date if they are of an allowable nature. Expenses that were reimbursed by other sources of funding, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, cannot be double counted as expenses reimbursed by the PRF disbursement.
Also, the receipt of prior PRF funds is taxable, unlike the cancellation of PPP debt. Additionally, if a provider receives $750K or more, they are subject to a Single Audit requirement, which is essentially an audit performed solely to test the receipt and use of the funds. We anticipate that similar requirements will be part of the Phase 4 distribution.
Providers have been given a 60-day grace period to submit their Period 1 reports, originally due on September 30, 2021. This does not change the previously announced period of applicability but does give providers additional time to submit their report.
See the Provider Relief Fund FAQs for more details.
If you have questions or need assistance with your application, contact our experts.