Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in Living Centers No. 2’s financial statements in conformity with generally accepted accounting principles. Because the schedule presents only a selected portion of the operations of Living Centers No. 2, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Living Centers No. 2. Living Centers No. 2 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance, does not charge indirect costs, and does not have any subrecipients.
Living Centers No. 2 received a U. S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Living Centers No. 2 received no additional loans during the year. The balance of the loan outstanding at June 30, 2024 is reported in the schedule under Assistance Listing #14.157 in the amount of $495,639.