Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of R.L.C. Corporation d/b/a Lutheran Towers, HUD Project No. 061-11209, and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) 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 R.L.C. Corporation d/b/a Lutheran Towers, it is not intended to and does not present the financial position, changes in net assets, or cash flows of R.L.C. Corporation d/b/a Lutheran Towers.Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. R.L.C. Corporation d/b/a Lutheran Towers has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Housing Corporation has received a U.S. Department of Housing and Urban Development insured loan under Section 223(f) of the National Housing Act. The balance of the loan at the beginning of the year is included in the federal expenditures presented in theSchedule. The outstanding balance of the loan as of December 31, 2022 was $1,396,429.