Audit 297932

Title: Basis of Presentation Accounting Policies: Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appenix IX. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes all federal grant activity of Luminis Health, Inc. and subsidiaries (the Company) that had expenditure activity during fiscal year 2023, of which no amounts were passed through to sub-recipients. The information in the 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 (the Uniform Guidance). In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 2). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of the Company for the year ended June 30, 2023. For purposes of the Schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans and loan guarantees, or other non-cash assistance. Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The System has elected to use the 10% de minimis indirect cost rate as covered in Uniform Guidance section 2 CFR 200.414 Indirect (F&A) costs, where allowable.

Title: COVID-19 – Provider Relief Fund Accounting Policies: Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appenix IX. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. In accordance with the U.S. Department of Health and Human Services’ requirements specific to Federal Assistance Listing No. 93.498, COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, the amount presented on the accompanying Schedule for the year ended June 30, 2023 for Federal Assistance Listing No. 93.498 relates to (i) Provider Relief Fund (PRF) payments received from July 1, 2021 – June 30, 2022; (ii) used for PRF-eligible activity from the period January 1, 2020 through June 30, 2023. This payment receipt period and activity period and the resulting amount presented on the accompanying Schedule for the year ended June 30, 2023 reconciles to the PRF information previously reported to the Health Resources and Services Administration (HRSA) for PRF Reporting Periods 4 and 5 as follows: “See the Notes to the SEFA for chart/table” Through June 30, 2022, the System received $7,056,123 in PRF payments on a consolidated basis within reporting periods 4 and 5. The lost revenues incurred by the System during the period of availability for PRF reporting period 4 and 5 (January 1, 2020 – June 30, 2023) are in excess of the general and targeted distributions received from July 1, 2021 through June 30, 2022 and, therefore, the amounts presented in the table above and on the accompanying Schedule are limited to the amount of such distributions.