Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Lutheran Housing Association for the Elderly of the V.I., Inc.’s Flambouyant Gardens (Flamboyant Gardens), Project Number 056-11029, under programs of the federal government for the year ended September 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 Flambouyant Gardens, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Flambouyant Gardens.
The accounting and reporting policies of the Project are set forth below: a. Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards is presented on the accrual basis of accounting. b. Basis of Accounting: The financial statements of the Project are presented using the accrual basis of accounting. The Project’s accounting system provides the primary information from which the Schedule is prepared. c. 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.
The Project has elected not to use the 10-percent de minims indirect cost rate allowed under Uniform Guidance.
Flamboyant Gardens received a HUD-insured mortgage from Merchants Capital under the provisions and regulations of Section 223(f) 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. Flambouyant Gardens received no additional loans during the year. The balance of the loan note outstanding at September 30, 2025, was $3,037,294.