Audit 293557

Title: Basis of Presentation Accounting Policies: Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through agency identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Corporations have not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Allegheny Lutheran Social Ministries, Inc. and Controlled Entities (the Corporations) under programs of the federal government for the year ended December 31, 2022. The information in this 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). The Corporations' consolidated financial statements include the operations of Somerset Lutheran Housing Community, Inc. d/b/a Lutheran Commons at Berlin Pike (Somerset) and Pleasant Gap Lutheran Housing Community, Inc. d/b/a Lutheran Commons at Pleasant Gap (Pleasant Gap) which expended $3,601,822 and $2,154,167, respectively in federal awards which are not included in the Corporations' schedule of expenditures of federal awards for the year ended December 31, 2022. The Schedule does not include the operations of Somerset or Pleasant Gap because the Department of Housing and Urban Development requires a standalone audit of the entities. Because the Schedule presents only a select portion of the operations of the Corporations, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporations.