Notes to SEFA
Title: Sub-Recipients
Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all
federal awards programs of The Lutheran Care Network, Inc. (the Company) under programs
of the federal government for the year ended December 31, 2023. Federal awards received
directly from federal agencies, as well as federal awards passed through other government
agencies, are included in the schedule. 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 for Federal Awards (Uniform Guidance). Because the
schedule presents only a selected portion of the operations of the Company, it is not intended
to and does not present the financial position, changes in net assets, functional expenses, or
cash flows of the Company. The accompanying schedule of expenditures of federal awards is presented using the accrual
basis of accounting used by the Company to report to the federal government. 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Of the federal expenditures presented in the schedule of federal awards, the Company
provided no federal awards to sub-recipients.
Title: Insured Mortgage
Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all
federal awards programs of The Lutheran Care Network, Inc. (the Company) under programs
of the federal government for the year ended December 31, 2023. Federal awards received
directly from federal agencies, as well as federal awards passed through other government
agencies, are included in the schedule. 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 for Federal Awards (Uniform Guidance). Because the
schedule presents only a selected portion of the operations of the Company, it is not intended
to and does not present the financial position, changes in net assets, functional expenses, or
cash flows of the Company. The accompanying schedule of expenditures of federal awards is presented using the accrual
basis of accounting used by the Company to report to the federal government. 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Company obtained a mortgage guarantee from HUD. The outstanding balance of this
mortgage at December 31, 2023 was $7,947,715.