Audit 74

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized in the period incurred. Such expenditures are recognized following the cost principles contained in Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of HEALTH AND LIFE ORGANIZATION, INC. under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the provisions of and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position and changes in net assets of the Organization.

Title: MAJOR PROGRAM Accounting Policies: Expenditures reported on Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized in the period incurred. Such expenditures are recognized following the cost principles contained in Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The Organization has one major program for the year ended December 31, 2022, determined in accordance with 2 CFR 200.518 of the Uniform Guidance, consisting of expenditures of funds reimbursed from U.S. Department of Health and Human Services – American Rescue Plan (COVID-19), $ 2,866,323. As a result of the COVID-19 pandemic, many new federal programs have been established and funding has been added to existing federal programs from several Acts, which include the American Rescue Plan Act (ARP). The major program funded by ARP is governed under the Grants for New and Expanded Services under the Health Center Program. This program provides for expanded and/or sustained national investment in health centers funded under Section 330 of the Public Health Service Act or designated by the Health Resources and Services Administration (HRSA) as meeting the requirements of the Health Center Program (referred to as look-alikes). Objectives may include expanding access to primary health care by supporting service provision at new or existing health center sites, implementing evidence-based models to improve the quality of primary care services, supporting networks that facilitate health information technology-based quality improvements in health centers, and expanding primary health care services related to emerging public health issues, including public health emergencies. Total disbursements funded by this major program under the Grants for New and Expanded Services under the Health Center Program during 2022 of $2,866,323 comprise 98% of the total disbursements from federal awards. The Organization did not meet the requirements to be a low-risk auditee.

Title: CASH COMPOSITION Accounting Policies: Expenditures reported on Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized in the period incurred. Such expenditures are recognized following the cost principles contained in Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The Organization maintains several cash accounts with Wells Fargo Bank that included both federal and non-federal funds. As of December 31, 2022, federal funds comprise approximately 7% of the total fund.