Audit 304034

Title: General Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Co-applicant Status Community Health Center Grant Although legally separate entities, through February 1, 2023, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a “co-applicant” status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. Effective after February 1, 2023, SCHC was the sole applicant. SCHC is reporting awards 9 H80CS26600 and 1 H8GCS48130 here, and the City is also reporting these awards on its schedule of expenditures of federal awards. Donated Personal Protective Equipment (Unaudited) SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2023 De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements.

Title: Basis of Accounting Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Co-applicant Status Community Health Center Grant Although legally separate entities, through February 1, 2023, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a “co-applicant” status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. Effective after February 1, 2023, SCHC was the sole applicant. SCHC is reporting awards 9 H80CS26600 and 1 H8GCS48130 here, and the City is also reporting these awards on its schedule of expenditures of federal awards. Donated Personal Protective Equipment (Unaudited) SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2023 De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Co-applicant Status Community Health Center Grant Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Co-applicant Status Community Health Center Grant Although legally separate entities, through February 1, 2023, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a “co-applicant” status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. Effective after February 1, 2023, SCHC was the sole applicant. SCHC is reporting awards 9 H80CS26600 and 1 H8GCS48130 here, and the City is also reporting these awards on its schedule of expenditures of federal awards. Donated Personal Protective Equipment (Unaudited) SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2023 De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance Although legally separate entities, through February 1, 2023, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a “co-applicant” status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. Effective after February 1, 2023, SCHC was the sole applicant. SCHC is reporting awards 9 H80CS26600 and 1 H8GCS48130 here, and the City is also reporting these awards on its schedule of expenditures of federal awards.

Title: Donated Personal Protective Equipment (Unaudited) Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). The information in the SEFA 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). Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other entities, is included on the SEFA. SCHC’s reporting entity is defined in Note 1 to SCHC’s financial statements. Basis of Accounting The accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHC’s financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Co-applicant Status Community Health Center Grant Although legally separate entities, through February 1, 2023, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a “co-applicant” status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. Effective after February 1, 2023, SCHC was the sole applicant. SCHC is reporting awards 9 H80CS26600 and 1 H8GCS48130 here, and the City is also reporting these awards on its schedule of expenditures of federal awards. Donated Personal Protective Equipment (Unaudited) SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2023 De Minimis Rate Used: N Rate Explanation: SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2023.