Audit 10689

Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Petersburg Medical Center under programs of the federal government for the year ended June 30, 2023. 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). Petersburg Medical Center’s reporting entity is defined in Note 1 of Petersburg Medical Center’s basic financial statements. Federal awards received directly from federal agencies or passed through agencies of the State of Alaska or other non-federal agencies is included in the Schedule De Minimis Rate Used: N Rate Explanation: . Petersburg Medical Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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. Petersburg Medical Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 3. Passed Through Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Petersburg Medical Center under programs of the federal government for the year ended June 30, 2023. 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). Petersburg Medical Center’s reporting entity is defined in Note 1 of Petersburg Medical Center’s basic financial statements. Federal awards received directly from federal agencies or passed through agencies of the State of Alaska or other non-federal agencies is included in the Schedule De Minimis Rate Used: N Rate Explanation: . Petersburg Medical Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. No amounts were passed through to subrecipients.

Title: Note 4. Reconciliation to the Basic Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Petersburg Medical Center under programs of the federal government for the year ended June 30, 2023. 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). Petersburg Medical Center’s reporting entity is defined in Note 1 of Petersburg Medical Center’s basic financial statements. Federal awards received directly from federal agencies or passed through agencies of the State of Alaska or other non-federal agencies is included in the Schedule De Minimis Rate Used: N Rate Explanation: . Petersburg Medical Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The following is a reconciliation of federal expenditures reported in the Schedule of Expenditures of Federal Awards to grant revenues reported in Petersburg Medical Center’s financial statements: Federal expenditures per the Schedule $ 2,591,589 Add: Grant funding received from non-federal sources Provider Relief Fund revenue recognized in the current year for payments received prior to FY23 FEMA reported as revenue in fiscal year 2023 but not included in the SEFA per guidance from the Compliance Supplement Less: Period 4 Provider Relief Funds recognized as revenue in fiscal years 2021-2022 but not included in the SEFA in each fiscal year per guidance from the Compliance Supplement Grant revenues as reported in the Statement of Revenues, Expenses, and Changes in Net Position (operating and non-operating) $ 104,832 302,856 229,416 __(1,358,524) 1,870,169