Notes to SEFA
Title: Note A - Basis of Presentation
Accounting Policies: Note B - Summary of Significant 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Loretto Management Corporation (LMC) and Subsidiaries (the Corporation) under programs of the federal government for the year ended December 31, 2023. 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 Corporation, it is not intended to and does not present the financial position, results of operations, changes in net assets or cash flows of the Corporation.
Title: Note C - Indirect Cost Rate
Accounting Policies: Note B - Summary of Significant 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note D - Disaster Grants - Public Assistance
Accounting Policies: Note B - Summary of Significant 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation received amounts from DHS through the Disaster Grants - Public Assistance (Presidentially Declared Disasters) program (Federal Financial Assistance Listing No. 97.036) during the year ended December 31, 2023 totaling $4,664,835. The Corporation incurred eligible COVID-19
expenses and, therefore, recognized revenue in 2023 based upon receiving approval and received this reimbursement in 2023. In accordance with the 2023 compliance supplement, the program’s expenditures recognized on the schedule are based on the reporting of expenses incurred from January 2021 to July 2023 which were obligated by DHS during 2023 and 2022, as required under the compliance supplement. LMC has recognized approximately $42,000 in the 2023 consolidated
statement of operations in Grant income from CARES Act and its Subsidiaries have recognized the remaining funds amounting to approximately $4,623,000 in their respective financial statements during 2023.