Audit 329503

Title: Rural Education Achievement Program (REAP) Funds Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lower Yukon School District under programs of the federal government for the year ended June 30, 2024. 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 Lower Yukon School District, it is not intended to and does not present the financial position, changes in net position or cash flows of Lower Yukon School District. 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: Lower Yukon School District has elected not to use the 10-percent de minimis indirect rate allowed under the Uniform Guidance. Under the Rural Education Achievement Program (REAP) the district is permitted to re-allocate funding between various Title programs to pay for activities that are allowable under the program. In the current year, the district re-allocated $505,148 of Title II-A (84.367) funding, and $545,372 of Title IV-A (ALN 84.424) funding to cover allowable costs under Title I-A (ALN 84.010).