Notes to SEFA
Title: 4. SUB-RECIPIENTS
Accounting Policies: 1. GENERALThe accompanying schedule of expenditures of federal awards (the schedule) presents theactivity of all federal awards programs of Lutheran Housing Development Fund Corporation ofLong Island, Project No. 012-11272 (the Company) under programs of the federal governmentfor the year ended December 31, 2022. Federal awards received directly from federalagencies, as well as federal awards passed through other government agencies, are includedin the schedule.The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theschedule presents only a selected portion of the operations of the Company, it is not intendedto and does not present the financial position, change in net deficit, or cash flows of theCompany.2. BASIS OF ACCOUNTINGThe accompanying schedule is presented using the accrual basis of accounting and ispresented in accordance with accounting principles generally accepted in the United Statesused by the Company to report to the federal government. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures 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: 5. MORTGAGE PAYABLE
Accounting Policies: 1. GENERALThe accompanying schedule of expenditures of federal awards (the schedule) presents theactivity of all federal awards programs of Lutheran Housing Development Fund Corporation ofLong Island, Project No. 012-11272 (the Company) under programs of the federal governmentfor the year ended December 31, 2022. Federal awards received directly from federalagencies, as well as federal awards passed through other government agencies, are includedin the schedule.The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theschedule presents only a selected portion of the operations of the Company, it is not intendedto and does not present the financial position, change in net deficit, or cash flows of theCompany.2. BASIS OF ACCOUNTINGThe accompanying schedule is presented using the accrual basis of accounting and ispresented in accordance with accounting principles generally accepted in the United Statesused by the Company to report to the federal government. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures 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 has a mortgage with a bank in the amount of $6,204,600 at an interest rate of2.97%. The final payment on this mortgage is due May 1, 2040. The mortgage is insured by the Federal Housing Administration (FHA), an organizational unit of the United States Department of Housing and Urban Development (HUD). The outstanding balance on the mortgage at December 31, 2022 was approximately $4,456,100.