Notes to SEFA
Accounting Policies: NOTE A - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the grant activity
of LifeQuest and Controlled Entities (“LifeQuest”) and is presented on the accrual basis of accounting. The
information in the 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”). Therefore, some amounts presented in the Schedule may differ from
amounts presented in, or used in the preparation of, the basic consolidated financial statements. LifeQuest
has elected to use the 10% de minimis cost rate.
NOTE B - LOAN
LifeQuest has a loan agreement with the U.S. Department of Department of Agriculture Community
Facilities Loans and Grants program. In accordance with section 502(b) of the Uniform Guidance, the loan
balance outstanding at the beginning of the period is included as the federal expenditures presented in the
Schedule. As of June 30, 2024 and 2023, the outstanding balance of the loan was $ 41,577,000. Refer to
Note H of the accompanying consolidated financial statements for additional information regarding this loan.
De Minimis Rate Used: Y
Rate Explanation: de minimus rate used