Audit 395173

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 2025. 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, 2025. 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 de minimis indirect cost rate as covered in Uniform Guidance section 2 CFR 200.414 Indirect (F&A) costs, where allowable. There were no federal funds passed through to subrecipients for the year ended June 30, 2025.

Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, wherein 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. Expenditures incurred in prior years reported on the Schedule for certain grants are recognized based on the following: − Disaster Grants - Public Assistance (Presidentially Declared Disasters), federal assistance listing number 97.036, represents reportable expenditures when both of the following criteria are met (1) the Federal Emergency Management Agency has approved the Company's project, and (2) the eligible expenditures have been incurred. During the year ended June 30, 2025, the Maryland Department of Emergency Management Agency sub-awarded to the Company federal funding obligated in 2025 by the U.S. Department of Homeland Security through the Federal Emergency Management Agency totaling $40,482,943 for various project expenditures that were incurred in prior years.