Audit 331161

Title: Assistance Listing Number 97.036 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Kenai Peninsula Borough, Alaska (the Borough) 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). Because the Schedule presents only a selected portion of the operations of the Borough, it is not intended to and does not present the financial position, changes in net position or cash flows of the Borough. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Borough reported the Disaster Grants – Public Assistance (Presidentially Declared Disasters) expenditures of $91,644 on the Schedule for the year ended June 30, 2023, which were associated with prior year expenditures.

Title: Restatement of 2023 Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Kenai Peninsula Borough, Alaska (the Borough) 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). Because the Schedule presents only a selected portion of the operations of the Borough, it is not intended to and does not present the financial position, changes in net position or cash flows of the Borough. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The 2023 SEFA has been restated to correct an error and remove the expenditures previously reported for Federal Assistance Listing Number 66.202 in the amount of $2,159,280, as the grant had not been formally awarded as of June 30, 2023. As a result, this program is not reported as a major program for 2023. Total federal expenditures were previously reported for the year ended June 30, 2023, were $9,034,435, which has been revised to $6,875,155.