Notes to SEFA
Title: NOTE 1 - BASIS OF PRESENTATION
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. Negative amounts (if any) shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Lutheran Housing Corporation of Alpena has elected not to use the 10-percent de minimis indirect cost rate
allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not
elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards
executed on or after October 1, 2024.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of Lutheran Housing Corporation of Alpena under programs of the federal government for the year
ended December 31, 2024. 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 Lutheran Housing Corporation of Alpena, it is not intended to and does not present
the financial position, changes in net deficit or cash flows of Lutheran Housing Corporation of Alpena.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. Negative amounts (if any) shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Lutheran Housing Corporation of Alpena has elected not to use the 10-percent de minimis indirect cost rate
allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not
elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards
executed on or after October 1, 2024.
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. Negative amounts (if any) shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through entity identifying numbers are presented where available.
Lutheran Housing Corporation of Alpena has elected not to use the 10-percent de minimis indirect cost rate
allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not
elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards
executed on or after October 1, 2024.
Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM
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. Negative amounts (if any) shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Lutheran Housing Corporation of Alpena has elected not to use the 10-percent de minimis indirect cost rate
allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not
elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards
executed on or after October 1, 2024.
Lutheran Housing Corporation of Alpena has a mortgage insured by U.S. Department of Housing and
Urban Development under Section 223(f) of the National Housing Act. The mortgage is included in the
federal expenditures presented in the Schedule. Lutheran Housing Corporation of Alpena received no
additional capital advances, or loans, during the year. The balance of the mortgage at December 31, 2024, was
$1,970,258.