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AICPA releases audit guidance for firms receiving government grant

The American Institute of CPAs (AICPA) has issued a set of Technical Q and A’s (TQA) to assist US non-governmental health care organisations account for state grant payments. These include payments received from the CARES Act, the Provider Relief Fund, and boosted Medicare and Medicaid grants. Isabella Colletta reports

The guidance document was developed by the AICPA Health Care Expert Panel, and aims to assist businesses and not-for-profit organisations. 

The TQA provides background information on the grants and addresses seven specific inquiries regarding governmental funding. The guidance also provides non-government entities with advice on selecting an appropriate accounting model to apply to a government grant.

Member of the AICPA health care expert panel Brian Conner said: “We hope these TQAs will provide some helpful information to practitioners on the accounting for Provider Relief Fund general distribution payments and payments for treating uninsured COVID-19 patients. The TQAs also address payments received under the Medicare Accelerated and Advance Payment Program and the temporarily increased payments for services to Medicare and Medicaid patients.”

AICPA manager Andy Mrakovcic commented on the need for the guidance provided, saying: “There is currently no explicit guidance within U.S. Generally Accepted Accounting Principles (GAAP) on the accounting for government grants to health care business entities. We hope these TQAs will help health care business entities select an appropriate accounting model when applying for a government grant.”

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