Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of The Healing Place, Inc. (“THP”) under programs of the federal government for the year ended December 31, 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 THP, it is not intended to and does not present the financial position, changes in net assets or cash flows of THP. We have audited the consolidated financial statements of The Healing Place, Inc. and Subsidiaries (the “Organization”) as of and for the year ended December 31, 2025. The Organization consists of a number of entities, discussed in Note A to the consolidated financial statements. Our audit of compliance, on pages 29 through 31, only includes the federal grant activity of The Healing Place, Inc. because the affiliated entities either do not receive or expend federal awards, or they separately report their federal awards, if reporting thresholds are met by any of the affiliates.
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 and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
THP has not elected to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
To assist in the acquisition and construction of a new affordable housing development for single parents recovering from addiction, THP obtained a forgivable loan from the Louisville/Jefferson County Metro Government’s Department of Housing and Family Services under the HOME Investment Partnerships Program in May 2008. The loan is forgivable through May 2028, provided that the property maintains a certain number of units for individuals recovering from addiction. As determined by the 2 CFR Section 200.502(b), the federal expenditure amount of $200,000 represents the outstanding forgivable loan balance as of January 1, 2025. The outstanding forgivable loan balance as of December 31, 2025 is $160,000.