Notes to SEFA
Title: 1. GENERAL
Accounting Policies: 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: N
Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
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, 2024. 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.
Title: 2. BASIS OF ACCOUNTING
Accounting Policies: 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: N
Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
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.
Donated Personal Protective Equipment For the year ended December 31, 2024, there was no donated personal protective equipment received.
Title: 3. SUB-RECIPIENTS
Accounting Policies: 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: N
Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Of the federal expenditures presented in the schedule of federal awards, the Company provided no federal awards to sub-recipients.
Title: 4. INSURED MORTGAGE
Accounting Policies: 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: N
Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Company obtained a mortgage guarantee from HUD. The outstanding balance of this mortgage at December 31, 2024 was $7,353,442.
Title: 5. INDIRECT COST RATES
Accounting Policies: 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: N
Rate Explanation: The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Company has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.