The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of House of Ruth (the “Organization”), Inc. under programs of the federal government for the year ended June 30, 2025. 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 House of Ruth, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of House of Ruth, Inc. The basic financial statement classifications may include other activity for reporting purposes.
Expenditures reported on the SEFA 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.
House of Ruth, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In January 2023, the Organization signed a noninterest bearing note with Louisville Metro Government to help finance the cost of House of Ruth Permanent Supportive Housing Units commonly known as Red Key Landing. The funds are provided via American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The units shall be used solely as rental housing for low and very low-income families and individuals as defined under 24 CFR 92 in the HOME Investment Partnership Program regulations, and for a period of twenty years from the date of the project completion. The loan amount is $6,517,259, matures in June 2046 and is secured by the Red Key Landing project. The Organization draws funds as needed for construction use. The note will be forgiven in June 2046, provided that the Organization follows the requirements per the agreement. The note balance was $3,624,453 as of 6/30/25 and has been included as restricted revenue in the financial statements and the SEFA. In June 2025, House of Ruth, Inc. entered into a loan agreement with the Louisville Metro Affordable Housing Trust Fund, Inc. (LAHTF) in the amount of $1,371,489. The loan is non-interest bearing and is secured by the Red Key Landing project. Under the terms of the agreement, the loan is forgivable on July 1, 2043, provided that no event of default has occurred and the borrower remains in compliance with the affordable housing requirements. The loan is subordinate to a senior loan of $6,517,259 provided by the Louisville/Jefferson County Metro Government. As of June 30, 2025, management believes the Organization is in compliance with all covenants and conditions required for loan forgiveness.
The financial statements are presented on an accrual basis for the year ending June 30, 2025. The Schedule of Expenditure of Federal reconciles to the financial statements as follows: Grant and contributions revenues $ 7,495,349 Less: Grants and contributions- Non-federal grants with donor restrictions 1,430,492 Non-federal grants without donor restrictions 726,870 Construction in progress, not recognized as revenue 23,699 Total federal expenditures $ 5,314,288