Audit 344323

Title: Adjustments for Prior Year Indirect Cost Rate Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of Norton Sound Health Corporation (NSHC). 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. NSHC’s reporting entity is defined in Note 1 of the entity’s financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the accrual basis of accounting, which is described in Note 1 of NSHC’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, or other applicable regulation, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NSHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: NSHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts listed below are reductions to previously reported grant revenues resulting from the difference between the provisional indirect cost rate applied in prior years and the final settled rate for those years. These amounts have been reimbursed to the grantors in fiscal year 2024 and are reported as a reduction to grant revenue in the fiscal year 2024 financial statements. Special Supplemental Nutrition Program for women, infants and children $ 18,304 COVID HEC 1,674 Total adjustments for prior year indirect cost rate $ 19,978

Title: Reconciliation  to Financial Statements Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of Norton Sound Health Corporation (NSHC). 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. NSHC’s reporting entity is defined in Note 1 of the entity’s financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the accrual basis of accounting, which is described in Note 1 of NSHC’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, or other applicable regulation, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NSHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: NSHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of revenues reported in NSHC’s financial statements to federal expenditures reported in the SEFA. Grant and contract revenue reported in the statement of activities: Indian Health Service Compact: Patient service revenue $ 66,794,533 Tribal shares 2,170,790 Other 50,987,498 Grant and contract revenue 13,785,737 Construction grant revenue 5,305,028 Total grant and contract revenue reported 139,043,586 Add: Adjustments for prior year indirect cost rate – State grants 94,092 Add: Adjustments for prior year indirect cost rate – Federal grants 19,978 Less: State of Alaska grant expenditures (1,166,107) Less: Local and other grants and contracts (1,519,519) Federal share of expenditures as reported in the SEFA $ 136,472,030