Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of LutherCrest, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of Luther Crest, Inc., itis not intended to and does not present the financial position, changes in net assets, or cash flows of LutherCrest, Inc.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Luther Crest, Inc. has elected not to usethe 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMLuther Crest, Inc. has received a U.S. Department of Housing and Urban Development Capital Advanceunder Section 202 of the National Housing Act. The Capital Advance under Section 202 balanceoutstanding at the beginning of the year is included in the federal expenditures presented in the Schedule.Luther Crest, Inc. received no additional Capital Advances during the year. The balance of the CapitalAdvance outstanding at December 31, 2022 consists of:CFDANumber Program NameOutstanding Balanceat December 31, 2022Supportive Housing for the ElderlyCapital Advance14.157 $ 5,132,800
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 5132800.