Audit 52002

Accounting Policies: GeneralThe accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal award programs of Seward Community Health Center, Inc. (SCHC). 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. SCHCs reporting entity is defined in Note 1 to SCHCs financial statements.Basis of AccountingThe accompanying SEFA is presented using the accrual basis of accounting, described in Note 1 of SCHCs financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. SCHC has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.Co-applicant Status Community Health Center GrantAlthough legally separate entities, the Community Health Center grant was issued to the City of Seward, Alaska (the City) and to SCHC in a co-applicant status, whereby both the City and SCHC are jointly responsible for program objectives and grant compliance. SCHC is reporting the award here and the City is also reporting this award on its schedule of expenditures of federal awards.Donated Personal Protective Equipment (Unaudited)SCHC did not receive any donated personal protective equipment (PPE) from federal assistance passed through other agencies in fiscal year 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.