Notes to SEFA
Title: Non-Cash Assistance
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the
federal grant activity of City of Kotzebue, Alaska (the City) under programs of the federal
government for the year ended December 31, 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). Because the Schedule presents only a selected portion of the operations of the
City, it is not intended to and does not present the financial position, changes in net position or
cash flows of the City. Expenditures reported on the Schedule are reported on the modified 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.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10-percent de minimus indirect cost rate allowed under the
Uniform Guidance.
In FY23, the Alaska Department of Transportation and Public Facilities expended federal grants to
enhance City-owned assets. The value of this non-cash assistance was determined in accordance
with the provisions of 2 CFR 200, Subpart F, Audit Requirements, Section 502 (g). The funds were
expended for improvement of public roads and sidewalks in Kotzebue. The Assistance Listing number
of such funds is 20.205 and the total expenditure of the funds is $9,443,924.