Title: Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the activity of all federal awards programs of Lutheran Housing Development Fund Corporation at Concord Village, Project No. 12-EE-246 (the Company) under programs of the federal government for the year ended December 31, 2022. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule. 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 the Company, it is not intended to and does not present the financial position, change in net deficit, or cash flows of the Company.
De Minimis Rate Used: Y
Rate Explanation: The Company has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
THe accompanying schedule is presented using the accrual basis of accounting and is presented in accordance with accounting principles generally accepted in the United States used by the Company to report to the federal government. 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.
Title: Sub-Recipients
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the activity of all federal awards programs of Lutheran Housing Development Fund Corporation at Concord Village, Project No. 12-EE-246 (the Company) under programs of the federal government for the year ended December 31, 2022. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule. 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 the Company, it is not intended to and does not present the financial position, change in net deficit, or cash flows of the Company.
De Minimis Rate Used: Y
Rate Explanation: The Company has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Of the federal expenditures presented in the schedule of federal awards, the Company provided no federal awards to sub-recipients.
Title: Capital Advance
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the activity of all federal awards programs of Lutheran Housing Development Fund Corporation at Concord Village, Project No. 12-EE-246 (the Company) under programs of the federal government for the year ended December 31, 2022. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the schedule. 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 the Company, it is not intended to and does not present the financial position, change in net deficit, or cash flows of the Company.
De Minimis Rate Used: Y
Rate Explanation: The Company has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In March 2002, the Company executed a capital advance building agreement with HUD for $7,050,700. During May 2006, this agreement was increased to $7,163,601. The capital advance shall bear no interest and is not required to be repaid as long as the property's apartments remain available to eligible very low-income households and in accordance with Section 202 for a period of forty years. If, during the term of the forty-year advance agreement, the property's apartments are not available to eligible very low-income households, the entire capital advance of $7,163,601 is due and payable to HUD. The capital advance is secured by a mortgage on the Company's land, building, and equipment.