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 LutherHeights, Inc. and is presented on the accrual basis of accounting. The information in this schedule ispresented 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 LutherHeights, Inc., it is not intended to and does not present the financial position, changes in net assets, or cashflows of Luther Heights, 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 Heights, Inc. has elected not touse the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMLuther Heights, 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 Heights, 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 $ 2,876,200
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 2876200.