Notes to SEFA
Title: NOTE A - BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on this Schedule are reflected on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Lutheran Knolls, A Facility of Bethesda House Corporation, HUD Project
No. 034-EH-072 has elected not to use the 10 percent de minimis indirect cost rate allowed
under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Auditee did not use the minimis cost rate.
The accompanying schedule of expenditures of federal awards (Schedule) includes the
federal award activity of Lutheran Knolls, A Facility of Bethesda House Corporation, HUD
Project No. 034-EH-072, under programs of the federal government for the year ended
June 30, 2023. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Because the Schedule presents only a selected portion of the operations of
Lutheran Knolls, A Facility of Bethesda House Corporation, HUD Project No. 034-EH-
072, the Schedule is not intended to and does not present the financial position, changes in
net assets, or cash flows of Lutheran Knolls, A Facility of Bethesda House Corporation,
HUD Project No. 034-EH-072.
Title: NOTE C - U.S. DEPT. OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
Accounting Policies: Expenditures reported on this Schedule are reflected on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Lutheran Knolls, A Facility of Bethesda House Corporation, HUD Project
No. 034-EH-072 has elected not to use the 10 percent de minimis indirect cost rate allowed
under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Auditee did not use the minimis cost rate.
Lutheran Knolls, A Facility of Bethesda House Corporation, HUD Project No. 034-EH-
072 has received a U.S. Department of Housing and Urban Development insured loan
under Section 223(F) of the National Housing Act. The loan balance outstanding at the end
of the fiscal year is included in the federal expenditures presented in the Schedule above.
Lutheran Knolls, A Facility of Bethesda House Corporation, HUD Project No. 034-EH-
072 received no additional loans during the fiscal year.