Audit 5019

Title: Relationship to Basic Financial Statements Accounting Policies: General The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of allfederal financial assistance programs of Kake City School District (School District), a componentunit of the City of Kake, for the year ended June 30, 2023. 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. The School District’s reporting entity is defined in Note 1 to the financial statements. Basis of Accounting Expenditures reported on the accompanying SEFA are presented using the modified-accrual basis of accounting, which is described in Note 1 of the School District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and OMB Circulars, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The School District 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: The auditee did not use the de minimus cost rate. Relationship to Basic Financial Statements The following is a reconciliation of federal revenues reported in the School District's basic financial statements to federal expenditures reported in the SEFA. Federal revenues as reported in the basic financial statements $ 1,541,191 Add: Impact Aid reserved in prior year recognized as expended in fiscal year 2023 on the SEFA 574,767 Less: Impact Aid assigned for subsequent year expenditures recognized as revenue in the financial statements (679,237) Federal share of expenditures as reported on the SEFA $ 1,436,721