Audit 343585

Title: Assistance Listing Number 21.032 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of City and Borough of Sitka, Alaska (the City and Borough) 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 the City and Borough, it is not intended to and does not present the financial position, changes in net position or cash flows of the City and 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, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The City and Borough has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City and Borough reported the Local Assistance and Tribal Consistency Fund expenditures of $1,436,922 on the Schedule for the year ended June 30, 2024, which were approved during the current year fiscal year, but were incurred in the prior fiscal year.