Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the grant activity of LifeQuest and Controlled Entities (LifeQuest) 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. LifeQuest has elected to use the 10% de minimis cost rate. NOTE B - LOAN LifeQuest has a loan agreement with the U.S. Department of Department of Agriculture Community Facilities Loans and Grants program. In accordance with section 502(b) of the Uniform Guidance, the loan balance outstanding at the beginning of the period is included as the federal expenditures presented in the Schedule. As of both June 30, 2022 and 2021, the outstanding balance of the loan was $ 41,577,000. Refer to Note H of the accompanying consolidated financial statements for additional information regarding this loan.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 41577000.