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 West, Inc., HUD Project No. 034-EE011 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 de minimis cost rate.
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Lutheran Knolls West, Inc., HUD Project No. 034-EE011, under programs of the federal government for the year ended June 30, 2022. 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 West, Inc., HUD Project No. 034-EE011, the Schedule is not intended to and does not present the financial position, changes in net assets, or cash flows of Lutheran Knolls West, Inc., HUD Project No. 034-EE011.
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 West, Inc., HUD Project No. 034-EE011 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 de minimis cost rate.
Lutheran Knolls West, Inc., HUD Project No. 034-EE011 received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance outstanding at the end of the fiscal year is included in the federal expenditures presented in the Schedule above. Lutheran Knolls West, Inc., HUD Project No. 034-EE011 received no additional advances during the fiscal year. At June 30, 2021, the capital advance balance outstanding was $4,224,000.