Title: Summary of Significant Accounting Policies (continued)
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state of Wisconsin award activity of Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (LSS) under programs of the federal and state government for the year ended December 31, 2022 and is presented on the accrual basis of accounting. 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 of Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the schedule presents only a selected portion of the operations of LSS, it is not intended to and does not represent the financial position, changes in net assets or cash flows of LSS. Expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identification numbers are presented where available. LSS receives funding from the Wisconsin Departments of Children and Families, Health Services, Administration, Veterans Affairs, Transportation, and Public Instruction. The amounts received as grants have been subjected to the auditing provisions prescribed in the State of Wisconsin State Single Audit Guidelines (SSAG). LSS also received $30,972,978, related to over 150 contracts with state, county and local governmental units under various contractor relationships which passed through the Wisconsin Departments of Health Services, Corrections, and Children and Families. These contracts are not included on the Schedule and are reported separately in accordance with the guidance received from the various departments. Expenditures for the following consolidated subsidiaries of LSS are not included to meet the requirements of the Uniform Guidance, because they have separate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance: LSS Aspen Center, LLC, LSS Housing, Printery Row - Pulaski, LLC, LSS Croft Place, LLC, LSS Housing, South Willow, Inc., LSS Haymarket Lofts, LLC, LSS Housing, Tennyson Ridge, LLC, LSS Housing, 26th Street, Inc., LSS Housing, The Klassik-Verona, LLC, LSS Housing, 38Ten Parmenter - Middleton, LLC, LSS Housing, Thirteen31- Milwaukee, LLC, LSS Housing, Candise Street Lofts Jefferson, LLC, LSS Housing, Union Corners - Madison, LLC, LSS Housing, Center Street, Inc., LSS Housing, University Park Commons-, LSS Housing, Eau Claire, Inc., Madison, LLC, LSS Housing, Edison School - Milwaukee, LLC, LSS Housing, Uno's-Madison, LLC, LSS Housing, Germantown, Inc., LSS Housing, Uptown Lofts - Kenosha, LLC, LSS Housing- Gold Medal Lofts Racine, LLC, LSS Housing - Valor Madison, LLC, LSS Housing, Granville, Inc., LSS Housing, Waukesha Hickory Flats, Inc., LSS Housing, Hampton, Inc., LSS Housing, Willow Wood, Inc., LSS Housing, Home Sweet Home, Inc., LSS Housing, Woodside, Inc., LSS Housing, Horlick-Racine, LLC, LSS Housing, Woodview, Inc., LSS Housing, Houghton, Inc., LSS Jackson Square, LLC, LSS Housing, Inc., LSS Manor, Inc. Calumet, LSS Housing, Landmark - Wausau, LLC, LSS Manor, Inc. Chocolay, LSS Housing, Mill Road, Inc., LSS Manor, Inc. - Lake Geneva, LSS Housing, North Willow, Inc., LSS Manor, Inc. Marquette, LSS Housing, Phillis Wheatley - Milwaukee, LLC, LSS Manor, Inc. - New Berlin, LSS Housing, Prairieview, Inc., and LSS Pebble Ridge, LLC
De Minimis Rate Used: N
Rate Explanation: LSS has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
(a) The Uniform Guidance and the SSAG establish certain criteria for the identification of major programs. Under the Uniform Guidance, tests of compliance with certain types of compliance requirements are required for each major program. The major programs included in the schedule have been determined in accordance with the Uniform Guidance or the SSAG. Major programs are as follows:?19.510 US Refugee Admissions Program (federal major program only)?93.576 Refugee and Entrant Assistance Discretionary Grants (state major program only)?93.959 Block Grants for Prevention and Treatment of Substance Abuse (federal and state major program) The Wisconsin Departments of Health Services, Corrections, and Children and Families also require the contractor relationships to be audited in accordance with their requirements. (b) Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual award. The salary of a program coordinator of a federal or state award program and the materials consumed by the program are examples of direct costs. (c) Indirect costs cannot be easily identified with an individual award program. Indirect costs are the costs of services and resources that benefit many award programs, as well as other LSS activities. Indirect costs consist of expenses incurred for administration, building maintenance, and building and equipment depreciation.
Title: Audits
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state of Wisconsin award activity of Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (LSS) under programs of the federal and state government for the year ended December 31, 2022 and is presented on the accrual basis of accounting. 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 of Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the schedule presents only a selected portion of the operations of LSS, it is not intended to and does not represent the financial position, changes in net assets or cash flows of LSS. Expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identification numbers are presented where available. LSS receives funding from the Wisconsin Departments of Children and Families, Health Services, Administration, Veterans Affairs, Transportation, and Public Instruction. The amounts received as grants have been subjected to the auditing provisions prescribed in the State of Wisconsin State Single Audit Guidelines (SSAG). LSS also received $30,972,978, related to over 150 contracts with state, county and local governmental units under various contractor relationships which passed through the Wisconsin Departments of Health Services, Corrections, and Children and Families. These contracts are not included on the Schedule and are reported separately in accordance with the guidance received from the various departments. Expenditures for the following consolidated subsidiaries of LSS are not included to meet the requirements of the Uniform Guidance, because they have separate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance: LSS Aspen Center, LLC, LSS Housing, Printery Row - Pulaski, LLC, LSS Croft Place, LLC, LSS Housing, South Willow, Inc., LSS Haymarket Lofts, LLC, LSS Housing, Tennyson Ridge, LLC, LSS Housing, 26th Street, Inc., LSS Housing, The Klassik-Verona, LLC, LSS Housing, 38Ten Parmenter - Middleton, LLC, LSS Housing, Thirteen31- Milwaukee, LLC, LSS Housing, Candise Street Lofts Jefferson, LLC, LSS Housing, Union Corners - Madison, LLC, LSS Housing, Center Street, Inc., LSS Housing, University Park Commons-, LSS Housing, Eau Claire, Inc., Madison, LLC, LSS Housing, Edison School - Milwaukee, LLC, LSS Housing, Uno's-Madison, LLC, LSS Housing, Germantown, Inc., LSS Housing, Uptown Lofts - Kenosha, LLC, LSS Housing- Gold Medal Lofts Racine, LLC, LSS Housing - Valor Madison, LLC, LSS Housing, Granville, Inc., LSS Housing, Waukesha Hickory Flats, Inc., LSS Housing, Hampton, Inc., LSS Housing, Willow Wood, Inc., LSS Housing, Home Sweet Home, Inc., LSS Housing, Woodside, Inc., LSS Housing, Horlick-Racine, LLC, LSS Housing, Woodview, Inc., LSS Housing, Houghton, Inc., LSS Jackson Square, LLC, LSS Housing, Inc., LSS Manor, Inc. Calumet, LSS Housing, Landmark - Wausau, LLC, LSS Manor, Inc. Chocolay, LSS Housing, Mill Road, Inc., LSS Manor, Inc. - Lake Geneva, LSS Housing, North Willow, Inc., LSS Manor, Inc. Marquette, LSS Housing, Phillis Wheatley - Milwaukee, LLC, LSS Manor, Inc. - New Berlin, LSS Housing, Prairieview, Inc., and LSS Pebble Ridge, LLC
De Minimis Rate Used: N
Rate Explanation: LSS has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
All federal and state awards are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards.
Title: Capital Advances
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) includes the federal and state of Wisconsin award activity of Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (LSS) under programs of the federal and state government for the year ended December 31, 2022 and is presented on the accrual basis of accounting. 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 of Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the schedule presents only a selected portion of the operations of LSS, it is not intended to and does not represent the financial position, changes in net assets or cash flows of LSS. Expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identification numbers are presented where available. LSS receives funding from the Wisconsin Departments of Children and Families, Health Services, Administration, Veterans Affairs, Transportation, and Public Instruction. The amounts received as grants have been subjected to the auditing provisions prescribed in the State of Wisconsin State Single Audit Guidelines (SSAG). LSS also received $30,972,978, related to over 150 contracts with state, county and local governmental units under various contractor relationships which passed through the Wisconsin Departments of Health Services, Corrections, and Children and Families. These contracts are not included on the Schedule and are reported separately in accordance with the guidance received from the various departments. Expenditures for the following consolidated subsidiaries of LSS are not included to meet the requirements of the Uniform Guidance, because they have separate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance: LSS Aspen Center, LLC, LSS Housing, Printery Row - Pulaski, LLC, LSS Croft Place, LLC, LSS Housing, South Willow, Inc., LSS Haymarket Lofts, LLC, LSS Housing, Tennyson Ridge, LLC, LSS Housing, 26th Street, Inc., LSS Housing, The Klassik-Verona, LLC, LSS Housing, 38Ten Parmenter - Middleton, LLC, LSS Housing, Thirteen31- Milwaukee, LLC, LSS Housing, Candise Street Lofts Jefferson, LLC, LSS Housing, Union Corners - Madison, LLC, LSS Housing, Center Street, Inc., LSS Housing, University Park Commons-, LSS Housing, Eau Claire, Inc., Madison, LLC, LSS Housing, Edison School - Milwaukee, LLC, LSS Housing, Uno's-Madison, LLC, LSS Housing, Germantown, Inc., LSS Housing, Uptown Lofts - Kenosha, LLC, LSS Housing- Gold Medal Lofts Racine, LLC, LSS Housing - Valor Madison, LLC, LSS Housing, Granville, Inc., LSS Housing, Waukesha Hickory Flats, Inc., LSS Housing, Hampton, Inc., LSS Housing, Willow Wood, Inc., LSS Housing, Home Sweet Home, Inc., LSS Housing, Woodside, Inc., LSS Housing, Horlick-Racine, LLC, LSS Housing, Woodview, Inc., LSS Housing, Houghton, Inc., LSS Jackson Square, LLC, LSS Housing, Inc., LSS Manor, Inc. Calumet, LSS Housing, Landmark - Wausau, LLC, LSS Manor, Inc. Chocolay, LSS Housing, Mill Road, Inc., LSS Manor, Inc. - Lake Geneva, LSS Housing, North Willow, Inc., LSS Manor, Inc. Marquette, LSS Housing, Phillis Wheatley - Milwaukee, LLC, LSS Manor, Inc. - New Berlin, LSS Housing, Prairieview, Inc., and LSS Pebble Ridge, LLC
De Minimis Rate Used: N
Rate Explanation: LSS has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The capital advance balance at the beginning of the year is included in the federal expenditures presented in the Schedule. This is also the balance at December 31, 2022.