Life and Discovery, Inc.Non-Profit

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information: Assistance Listing Number: 93.516 Public Health Training Centers Program Federal Award Project Title: Community Health Worker Training Program Federal Award Identification Number: T2946692 Award Number: 6 T29HP46692-01-01 Federal Award Date: November 14, 2022 Project Period: September 15, 2022 – September 14, 2025 Questioned Costs: None Compliance Requirement: Procurement and Suspension and Debarment U.S DEPARTMENT OF LABOR Program Information: Assistance Listing Number: 17.285 Registered Apprenticeship Program Federal Award Project Title: Accelerated Pre-Apprenticeship Program for New Immigrants Federal Award Identification Number: 24A60AP000078 Award Number: 24A60AP000078-01-00 Federal Award Date: June 26, 2024 Project Period: July 1, 2024 – June 30, 2028 Questioned Costs: None Compliance Requirement: Procurement and Suspension and Debarment 2024-001 Policy and Procedure for Suspension and Debarment Material Weakness Condition: The non-profit organization (NFP) does not have a documented policy or procedure in place for verifying that vendors, subrecipients, and contractors are not suspended or debarred from receiving federal funds prior to entering into a covered transaction. Criteria: The Code of Federal Regulations (CRF) Section 2 CFR Section 180 requires written procedures that comply with federal standards for suspension and debarment. Cause: Management was not aware of the specific federal requirement to verify the suspension and debarment status of vendors and subrecipients, believing the standard procurement process was sufficient. The organization has no formal documented policy in place for the requirement of 2 CFR Section 180 of the CFR. Effect: AACF is not in compliance with 2 CFR Section 180. Repeat Finding: No. Auditor’s Recommendation: We recommend AACF adopt a formal written policy in the format and with the elements required by 2 CFR Section 180. Views of Responsible Officials and Planned Correct Action: AACF concurs with this finding. AACF leadership, including its Board and Executive Director, will review and update the organization’s fiscal policies and procedures within 90 days to ensure compliance with Uniform Guidance requirements. All contractors will be required to certify that neither their agency nor any of their principals are debarred or suspended from doing business with the federal government. The Executive Director will be responsible for ensuring this documentation is obtained prior to executing any contractual agreements moving forward. In addition, the Director of Operations will conduct debarment checks for all applicable vendors through SAM.gov in 2024 and 2025 and will provide the results to the Executive Director for review within 30 days.

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE- NON MAJOR PROGRAM Program Information: Assistance Listing Number: 94.016 AmeriCorps Seniors Senior Companion Program Federal Award Project Title: Senior Companion Program Federal Award Number: 21SCBMD001 Questioned Costs: $55,548 Compliance Requirement: Activities Allowed or Unallowed 2024-002 Unallowable Costs Condition: During an audit of the program by Office of Monitoring’s Financial and Operational Fitness and the National Service Criminal History Checks for the fiscal year 2023 expenses, it was noted that $13,513 arose from noncompliance with allowability of costs (2 CFR 200.403) and $42,035 for noncompliance with National Service Criminal History Checks Federal Regulations (45 CFR 2540.200-207) Criteria: The Code of Federal Regulations (CRF) requires organizations to be in compliance with 2 CFR 200.403 and 45 CFR 2540.200-207. Cause: Management was not aware of the specific federal requirement. Effect: AACF is not in compliance with 2 CFR 200.403 and 45 CFR 2540.200-207. Repeat Finding: No. Auditor’s Recommendation: We recommend AACF review its policies and procedures over compliance to ensure all requirements under 2 CFR 200.403 and 45 CFR 2540.200-207 are adopted in a formal written policy. Views of Responsible Officials and Planned Correct Action: AACF concurs with this finding. AACF submitted a corrective action plan to AmeriCorps and on January 31, 2025 AmeriCorps accepted their corrective action plan and closed the finding. AACF will ensure all requirements under 2 CFR 200.403 and 45 CFR 2540.200-207 are met moving forward.

DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.

DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.326 require written policies concerning methods of procurement for goods and services. Condition: The Organization did not have a written procurement policy that included all of the required elements during 2022. Cause: The Organization is smaller and while general procedures for the procurement of goods and services have been established, they were not written and did not meet all of the requirements of the CFR. Effect: The Organization is not in compliance with Section 200.318 - 200.326 of the Code of Federal Regulations. Auditor?s Recommendation: We recommend that the Organization adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.326. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and adopted a ?Fiscal Policies and Procedures Manual? on October 1, 2022.

Criteria - 2 CFR 200.302(b), The financial management system, 2 CFR 200.403 Factors affecting allowability of costs, 2 CFR 200.463 Recruiting costs, 45 CFR 2540.204 When must I conduct a National Service Criminal History Check on an individual in a covered position, 45 CFR 2540.205 procedures in conducting a National Service Criminal History Check for a covered position, 2 CFR 200.403 Factors affecting allowability of costs, and other include as reported in the general requirements. Specific guidelines are provided in the yellow book about allocation of expenses, state background check, identity verification, and consent forms filing for new recruits, and cost matching and allocation for expenditures of federal award dollars. Conditions - The Asian American Center of Frederick on some occasions wrongly allocated expenses on grant budgets, and in some instances, no appropriate documents could be provided to justify expenditures. Proper documentation and procedures in support of recruitment of some key personals were missing. Cause - The Asian American Center of Frederick lack appropriate written policies. The current financial management policies and procedures was last reviewed in 2014, and has no GAAS and yellow book guidelines on Federal Agency Single Audit, internal control, and or compliance over internal control. As remote as the financial and m management policies and procedures, would not allow AACF to comply with federal status, regulations, terms, and conditions of federal awards with direct and indirect costs. The lack of proper conflict of interest policies, internal control, systems, and compliance over Internal control is a major issue and limits the ability to better comply with the Generally Accepted Government Auditing Standards (2018 Revision). Effect - The lack of up-to-date policies, appropriate controls on the administration of Federal Funds affects the effectiveness, accuracy, and timely reporting of requirements information. The non-applicability of the Uniform Guidance could reduce or cancel some of the grants AACF is expecting from the Federal Government. Questioned Costs - There are no questioned costs associated with this finding as the exceptions noted relate to the lack of updated procedures and policies. Recommendations - AACF should urgently update its financial management policies and procedures, write a conflict of interest policy, internal control policy, and compliance over internal control policy. Affect and train personnel who will specialize in the management of federal government awards. Adapt a procurement policy as requirement of federal awards.

Criteria - 2 CFR 200.302(b), The financial management system, 2 CFR 200.403 Factors affecting allowability of costs, 2 CFR 200.463 Recruiting costs, 45 CFR 2540.204 When must I conduct a National Service Criminal History Check on an individual in a covered position, 45 CFR 2540.205 procedures in conducting a National Service Criminal History Check for a covered position, 2 CFR 200.403 Factors affecting allowability of costs, and other include as reported in the general requirements. Specific guidelines are provided in the yellow book about allocation of expenses, state background check, identity verification, and consent forms filing for new recruits, and cost matching and allocation for expenditures of federal award dollars. Conditions - The Asian American Center of Frederick on some occasions wrongly allocated expenses on grant budgets, and in some instances, no appropriate documents could be provided to justify expenditures. Proper documentation and procedures in support of recruitment of some key personals were missing. Cause - The Asian American Center of Frederick lack appropriate written policies. The current financial management policies and procedures was last reviewed in 2014, and has no GAAS and yellow book guidelines on Federal Agency Single Audit, internal control, and or compliance over internal control. As remote as the financial and m management policies and procedures, would not allow AACF to comply with federal status, regulations, terms, and conditions of federal awards with direct and indirect costs. The lack of proper conflict of interest policies, internal control, systems, and compliance over Internal control is a major issue and limits the ability to better comply with the Generally Accepted Government Auditing Standards (2018 Revision). Effect - The lack of up-to-date policies, appropriate controls on the administration of Federal Funds affects the effectiveness, accuracy, and timely reporting of requirements information. The non-applicability of the Uniform Guidance could reduce or cancel some of the grants AACF is expecting from the Federal Government. Questioned Costs - There are no questioned costs associated with this finding as the exceptions noted relate to the lack of updated procedures and policies. Recommendations - AACF should urgently update its financial management policies and procedures, write a conflict of interest policy, internal control policy, and compliance over internal control policy. Affect and train personnel who will specialize in the management of federal government awards. Adapt a procurement policy as requirement of federal awards.