Audit 66275

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Petersburg Borough, Alaska (the Borough) excluding its component units,Petersburg School District and Petersburg Medical Center, under programs of the federalgovernment for the year ended June 30, 2022. The information in the Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theBorough, 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, if any, represent adjustments or credits made in thenormal course of business to amounts reported as expenditures in prior years. Pass-through entityidentifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.