Audit 315847

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported 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. Pass-through entity identifying numbers are presented where available. In some cases, activity may result in a net negative amount due to reason such as a return of unexpended funds from a prior year or reallocation of such funds to the current year award or the return of the indirect costs charged based on final rates being lower than the provisional billed rates. De Minimis Rate Used: N Rate Explanation: LIRS has an approved indirect cost rate and as such, is not eligible to use the 10% de minimis indirect cost rate. The accompanying schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Lutheran Immigration and Refugee Service, Inc. d/b/a Global Refuge (“LIRS”) . 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). Because the Schedule presents only a selected portion of the operations of LIRS, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of LIRS. Amounts provided to subrecipients shown separately on the schedule of expenditures of federal awards are also a component of the federal expenditures presented.

Title: FEDERAL LOAN PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported 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. Pass-through entity identifying numbers are presented where available. In some cases, activity may result in a net negative amount due to reason such as a return of unexpended funds from a prior year or reallocation of such funds to the current year award or the return of the indirect costs charged based on final rates being lower than the provisional billed rates. De Minimis Rate Used: N Rate Explanation: LIRS has an approved indirect cost rate and as such, is not eligible to use the 10% de minimis indirect cost rate. The Refugee Microenterprise Program (“ORR-MED”) is administered directly by LIRS, and balances and transactions relating to this program are included in LIRS’s consolidated financial statements. The amounts reported on the Schedule include the balance as of January 1, 2023 of $0 and new loans issued during 2023 in the amount of $105,000. As of December 31, 2023, total loans receivable under this program amount to $105,000. The following is a reconciliation of federal expenditures reported on the Schedule to the government revenue recorded in the statement of activities: U.S. Government grant revenue (based on expenses incurred) $ 221,476,051 ORR-MED Loans 105,000 Total expenditures of federal awards $ 221,581,051

Title: PROVIDER RELIEF FUNDS Accounting Policies: Expenditures reported on the Schedule are reported 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. Pass-through entity identifying numbers are presented where available. In some cases, activity may result in a net negative amount due to reason such as a return of unexpended funds from a prior year or reallocation of such funds to the current year award or the return of the indirect costs charged based on final rates being lower than the provisional billed rates. De Minimis Rate Used: N Rate Explanation: LIRS has an approved indirect cost rate and as such, is not eligible to use the 10% de minimis indirect cost rate. As LIRS is not the direct recipient of the COVID-19 Provider Relief Funds – ALN 93.498 (“PRF”), and as such is not responsible for PRF portal reporting, the expenditures reported on the Schedule are based on the expenditures incurred during 2023.