Title: Audits
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the “Schedule”) includes the federal and state of Wisconsin award activity of Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (“LSS”) under programs of the federal and state government for the year ended December 31, 2024, and is presented on the accrual basis of accounting. 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 of Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of LSS, it is not intended to and does not represent the financial position, changes in net assets or cash flows of LSS. Expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identification numbers are presented where available.
LSS receives funding from the Wisconsin Departments of Children and Families, Health Services, Corrections, Administration, Veterans Affairs, Transportation, Public Instruction, and Justice. The
amounts received as grants have been subjected to the auditing provisions prescribed in the State of Wisconsin State Single Audit Guidelines (“SSAG”). LSS also received $38,083,302, related to over 150 contracts with state, county and local governmental units under various contractor relationships which passed through the Wisconsin Departments of Health Services, Corrections, and Children and Families. These contracts are not included in the Schedule and are reported separately in accordance with the guidance received from the various departments.
Expenditures for the following consolidated subsidiaries of LSS are not included to meet the requirements of the Uniform Guidance, because they have separate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance: LSS Aspen Center, LLC LSS Housing, Printery Row-Pulaski, LLC LSS Croft Place, LLC LSS Housing, Quentin Apartments- LSS Haymarket Lofts, LLC Palatine, LLC LSS Housing, 26th Street, Inc. LSS Housing, Riverside-Wausau, LLC LSS Housing, 38Ten Parmenter-Middleton, LLC LSS Housing, South Willow, Inc. LSS Housing, Bay City Lofts-Green Bay, LLC LSS Housing, Tennyson Ridge, LLC LSS Housing, Bronzeville Apartments- LSS Housing, The Klassik-Verona, LLC Milwaukee, LLC LSS Housing, Thirteen31-Milwaukee, LLC
LSS Housing, Candise Street Lofts Jefferson, LLC LSS Housing-ThriveOn-Milwaukee, LLC LSS Housing, CC Lane-Oregon, LLC LSS Housing, Union Corners-Madison, LLC LSS Housing, Center Street, Inc. LSS Housing, University Park Commons- LSS Housing, Eau Claire, Inc. Madison, LLC LSS Housing, Edison School-Milwaukee, LLC LSS Housing, University Park Commons IILSS Housing, Germantown, Inc. Madison, LLC LSS Housing-Gold Medal Lofts Racine, LLC LSS Housing, Uno's-Madison, LLC LSS Housing, Granville, Inc. LSS Housing, Uptown Lofts-Kenosha, LLC LSS Housing, Hampton, Inc. LSS Housing-Valor Madison, LLC LSS Housing, Home Sweet Home, Inc. LSS Housing, Waukesha Hickory Flats, Inc. LSS Housing, Horlick-Racine, LLC LSS Housing, Willow Wood, Inc.
LSS Housing, Houghton, Inc. LSS Housing, Woodside, Inc. LSS Housing, Inc. LSS Housing, Woodview, Inc. LSS Housing, Landmark-Wausau, LLC LSS Jackson Square, LLC LSS Housing, Main Street Townhomes- LSS Manor, Inc. - Calumet Oregon, LLC LSS Manor, Inc. - Chocolay LSS Housing, Mill Road, Inc. LSS Manor, Inc. - Lake Geneva LSS Housing, North Willow, Inc. LSS Manor, Inc. - Marquette LSS Housing, Park Lofts- Madison, LLC LSS Manor, Inc. - New Berlin LSS Housing, Phillis Wheatley-Milwaukee, LLC LSS Pebble Ridge, LLC LSS Housing, Prairieview, Inc.
(a) Uniform Guidance and the SSAG establish certain criteria for the identification of major programs. Under the Uniform Guidance, tests of compliance with certain types of compliance requirements are required for each major program. The major programs included in the Schedule have been determined in accordance with the Uniform Guidance or the SSAG. Major programs are as follows: • 21.027 Coronavirus State and Local Fiscal Recovery Funds (COVID-19) • 14.239 Home Investment Partnership Program • 93.566 Refugee and Entrant Assistance-State Administered Programs • 64.024 VA Homeless Providers Grant and Per Diem Program The Wisconsin Departments of Health Services, Corrections, and Children and Families also require contractor relationships to be audited in accordance with their requirements. (b) Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual award. The salary of a program coordinator of a federal or state award program and the materials consumed by the program are examples of direct costs. (c) Indirect costs cannot be easily identified with an individual award program. Indirect costs are the costs of services and resources that benefit many award programs, as well as other LSS activities. Indirect costs consist of expenses incurred for administration, building maintenance, and building and equipment depreciation.
De Minimis Rate Used: N
Rate Explanation: LSS has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
All federal and state awards are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursement by the grantor agencies for costs disallowed under the terms of the awards.
Title: Capital Advance
Accounting Policies: The accompanying Schedule of Expenditures of Federal and State Awards (the “Schedule”) includes the federal and state of Wisconsin award activity of Lutheran Social Services of Wisconsin and Upper Michigan, Inc. (“LSS”) under programs of the federal and state government for the year ended December 31, 2024, and is presented on the accrual basis of accounting. 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 of Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of LSS, it is not intended to and does not represent the financial position, changes in net assets or cash flows of LSS. Expenditures are recognized following, as applicable, either the cost principles in OMB Circular A- 122, Cost Principles for Non-profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identification numbers are presented where available.
LSS receives funding from the Wisconsin Departments of Children and Families, Health Services, Corrections, Administration, Veterans Affairs, Transportation, Public Instruction, and Justice. The
amounts received as grants have been subjected to the auditing provisions prescribed in the State of Wisconsin State Single Audit Guidelines (“SSAG”). LSS also received $38,083,302, related to over 150 contracts with state, county and local governmental units under various contractor relationships which passed through the Wisconsin Departments of Health Services, Corrections, and Children and Families. These contracts are not included in the Schedule and are reported separately in accordance with the guidance received from the various departments.
Expenditures for the following consolidated subsidiaries of LSS are not included to meet the requirements of the Uniform Guidance, because they have separate audits under the Uniform Guidance or do not require an audit under the Uniform Guidance: LSS Aspen Center, LLC LSS Housing, Printery Row-Pulaski, LLC LSS Croft Place, LLC LSS Housing, Quentin Apartments- LSS Haymarket Lofts, LLC Palatine, LLC LSS Housing, 26th Street, Inc. LSS Housing, Riverside-Wausau, LLC LSS Housing, 38Ten Parmenter-Middleton, LLC LSS Housing, South Willow, Inc. LSS Housing, Bay City Lofts-Green Bay, LLC LSS Housing, Tennyson Ridge, LLC LSS Housing, Bronzeville Apartments- LSS Housing, The Klassik-Verona, LLC Milwaukee, LLC LSS Housing, Thirteen31-Milwaukee, LLC
LSS Housing, Candise Street Lofts Jefferson, LLC LSS Housing-ThriveOn-Milwaukee, LLC LSS Housing, CC Lane-Oregon, LLC LSS Housing, Union Corners-Madison, LLC LSS Housing, Center Street, Inc. LSS Housing, University Park Commons- LSS Housing, Eau Claire, Inc. Madison, LLC LSS Housing, Edison School-Milwaukee, LLC LSS Housing, University Park Commons IILSS Housing, Germantown, Inc. Madison, LLC LSS Housing-Gold Medal Lofts Racine, LLC LSS Housing, Uno's-Madison, LLC LSS Housing, Granville, Inc. LSS Housing, Uptown Lofts-Kenosha, LLC LSS Housing, Hampton, Inc. LSS Housing-Valor Madison, LLC LSS Housing, Home Sweet Home, Inc. LSS Housing, Waukesha Hickory Flats, Inc. LSS Housing, Horlick-Racine, LLC LSS Housing, Willow Wood, Inc.
LSS Housing, Houghton, Inc. LSS Housing, Woodside, Inc. LSS Housing, Inc. LSS Housing, Woodview, Inc. LSS Housing, Landmark-Wausau, LLC LSS Jackson Square, LLC LSS Housing, Main Street Townhomes- LSS Manor, Inc. - Calumet Oregon, LLC LSS Manor, Inc. - Chocolay LSS Housing, Mill Road, Inc. LSS Manor, Inc. - Lake Geneva LSS Housing, North Willow, Inc. LSS Manor, Inc. - Marquette LSS Housing, Park Lofts- Madison, LLC LSS Manor, Inc. - New Berlin LSS Housing, Phillis Wheatley-Milwaukee, LLC LSS Pebble Ridge, LLC LSS Housing, Prairieview, Inc.
(a) Uniform Guidance and the SSAG establish certain criteria for the identification of major programs. Under the Uniform Guidance, tests of compliance with certain types of compliance requirements are required for each major program. The major programs included in the Schedule have been determined in accordance with the Uniform Guidance or the SSAG. Major programs are as follows: • 21.027 Coronavirus State and Local Fiscal Recovery Funds (COVID-19) • 14.239 Home Investment Partnership Program • 93.566 Refugee and Entrant Assistance-State Administered Programs • 64.024 VA Homeless Providers Grant and Per Diem Program The Wisconsin Departments of Health Services, Corrections, and Children and Families also require contractor relationships to be audited in accordance with their requirements. (b) Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual award. The salary of a program coordinator of a federal or state award program and the materials consumed by the program are examples of direct costs. (c) Indirect costs cannot be easily identified with an individual award program. Indirect costs are the costs of services and resources that benefit many award programs, as well as other LSS activities. Indirect costs consist of expenses incurred for administration, building maintenance, and building and equipment depreciation.
De Minimis Rate Used: N
Rate Explanation: LSS has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The capital advance balance at the beginning of the year is included in the federal expenditures presented in the Schedule related to the Home Investment Partnership Program. This is also the balance at December 31, 2024.