Audit 349566

FY End

2024-06-30

Total Expended

$1.15M

Findings

2

Programs

4

Organization: Luminis Health, Inc. (MD)

Year: 2024 Accepted: 2025-03-28

Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
538848	2024-001	Material Weakness	-	ABHN
1115290	2024-001	Material Weakness	-	ABHN

ALN	Program	Spent	Major	Findings
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$809,344	Yes	1
93.898	Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations	$340,477	-	0
12.750	Uniformed Services University Medical Research Projects	$1,197	-	0
93.394	Cancer Detection and Diagnosis Research	$1,057	-	0

Contacts

Name	Title	Type
KRHPSM7YJ3G5	Amanda Nickerson	Auditee
4434816547	Brandon Mueller	Auditor
No contacts on file

Notes to SEFA

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 2024. 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). 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. 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, 2024. 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.

Finding Details

Finding 2024-001

Recommendation We recommend that the Company maintain controls to ensure that the expenses reported to the awarding agency only include allowable amounts and that a duplication of benefits analysis is performed prior to the grants being obligated, if applicable. View of Responsible Officials Management acknowledges the finding and has an established duplication of benefits review process to ensure that only allowable costs are reported to the awarding agency. The Company notes that the initial duplication of benefits guidance was released at the same time as the submission of the costs related to this grant. Our understanding was that such funds were obligated prior to FEMA’s duplication of benefits analysis review due to the initial documentation provided. FEMA subsequently released clarified guidance in December 2023 and determined that it would require a duplication of benefits analysis for all of the costs submitted. We submitted our duplication of benefit analysis based on an analysis that we believed was reasonable, but it was ultimately determined by FEMA that the initial analysis needed to be revised. As a result, in December 2024, we agreed to reduce our project requests, which resulted in the de-obligation of certain costs related to this specific grant/project.

Finding 2024-001

Recommendation We recommend that the Company maintain controls to ensure that the expenses reported to the awarding agency only include allowable amounts and that a duplication of benefits analysis is performed prior to the grants being obligated, if applicable. View of Responsible Officials Management acknowledges the finding and has an established duplication of benefits review process to ensure that only allowable costs are reported to the awarding agency. The Company notes that the initial duplication of benefits guidance was released at the same time as the submission of the costs related to this grant. Our understanding was that such funds were obligated prior to FEMA’s duplication of benefits analysis review due to the initial documentation provided. FEMA subsequently released clarified guidance in December 2023 and determined that it would require a duplication of benefits analysis for all of the costs submitted. We submitted our duplication of benefit analysis based on an analysis that we believed was reasonable, but it was ultimately determined by FEMA that the initial analysis needed to be revised. As a result, in December 2024, we agreed to reduce our project requests, which resulted in the de-obligation of certain costs related to this specific grant/project.