FAC Explorer

Audit 295147

FY End
2023-06-30
Total Expended
$7.28M
Findings
4
Programs
7
Organization: Esperanza Health Centers (IL)
Year: 2023 Accepted: 2024-03-14
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
377352 2023-001 Significant Deficiency - B
377353 2023-001 Significant Deficiency - B
953794 2023-001 Significant Deficiency - B
953795 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.90M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $691,270 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $332,197 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $323,165 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $166,333 - 0
93.914 Hiv Emergency Relief Project Grants $88,008 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $57,384 - 0

Contacts

Name Title Type
MP5EWDCM5QS6 Ryan Gadia Auditee
7736405792 Chris Manderfield Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 Financial Statement Revenue Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Esperanza Health Centers under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of Esperanza Health Centers, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Esperanza Health Centers. De Minimis Rate Used: Y Rate Explanation: Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund (PRF) of $-0- and $222,746 for the years ended June 30, 2023 and 2022, respectively. The SEFA includes $-0- of PRF in the current year which is in accordance with the requirements of the compliance supplement for assistance listing number 93.498.
Title: NOTE 4 Assistance Listing Number 93.530 Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Esperanza Health Centers under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of Esperanza Health Centers, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Esperanza Health Centers. De Minimis Rate Used: Y Rate Explanation: Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate. Esperanza Health Centers received and expended funds from the Affordable Care Act –Teaching Health Center Graduate Medical Education (THCGME) Payments Program. The amount of funds received during the period under audit, $854,327, is not included in the Schedule of Expenditures of Federal Awards above as the program, ALN 93.530, is exempt from the Uniform Guidance requirements per the program description.
Title: NOTE 5 Other Matters Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Esperanza Health Centers under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of Esperanza Health Centers, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Esperanza Health Centers. De Minimis Rate Used: Y Rate Explanation: Esperanza Health Centers has elected to use the 10-percent de minimis indirect cost rate. Amount of Noncash Assistance None Amount of Insurance None Amount of Loans None Amount of Loan Guarantees None Subrecipients None

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H8F40833-01-00; H8024103-11-00 Award Periods: April 1, 2021 – March 31, 2023; May 1, 2022 – April 30, 2023 Type of Finding: Immaterial noncompliance and Significant deficiency in internal control over compliance Criteria: The Consolidated Appropriations Act, 2023, Division H, § 202 indicates "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II." If salaries are in excess of the salary cap, the amount of salaries charged to a federal award must be reduced to the Executive Level II amount, with any excess being paid by the non-federal entity with non-federal funds. Condition: The Organization charged three employees' salaries in excess of the federal salary cap. Questioned Costs: $900. Context: Three (3) of forty (40) payroll transactions selected for testing. Cause: The Organization’s internal draw down tracking worksheet contained an old salary for the employee or salary was not updated as employees are added to and removed from the grant throughout the fiscal year. Effect: Resulted in the Organization charging three employees' salaries in excess of the Federal salary cap. Repeat Finding: No. Recommendation: CLA recommends formatting the internal HRSA draw down worksheet to include conditional formatting when an employee's pay per pay period exceeds the amount that would be allowed by the federal salary cap. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H8F40833-01-00; H8024103-11-00 Award Periods: April 1, 2021 – March 31, 2023; May 1, 2022 – April 30, 2023 Type of Finding: Immaterial noncompliance and Significant deficiency in internal control over compliance Criteria: The Consolidated Appropriations Act, 2023, Division H, § 202 indicates "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II." If salaries are in excess of the salary cap, the amount of salaries charged to a federal award must be reduced to the Executive Level II amount, with any excess being paid by the non-federal entity with non-federal funds. Condition: The Organization charged three employees' salaries in excess of the federal salary cap. Questioned Costs: $900. Context: Three (3) of forty (40) payroll transactions selected for testing. Cause: The Organization’s internal draw down tracking worksheet contained an old salary for the employee or salary was not updated as employees are added to and removed from the grant throughout the fiscal year. Effect: Resulted in the Organization charging three employees' salaries in excess of the Federal salary cap. Repeat Finding: No. Recommendation: CLA recommends formatting the internal HRSA draw down worksheet to include conditional formatting when an employee's pay per pay period exceeds the amount that would be allowed by the federal salary cap. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H8F40833-01-00; H8024103-11-00 Award Periods: April 1, 2021 – March 31, 2023; May 1, 2022 – April 30, 2023 Type of Finding: Immaterial noncompliance and Significant deficiency in internal control over compliance Criteria: The Consolidated Appropriations Act, 2023, Division H, § 202 indicates "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II." If salaries are in excess of the salary cap, the amount of salaries charged to a federal award must be reduced to the Executive Level II amount, with any excess being paid by the non-federal entity with non-federal funds. Condition: The Organization charged three employees' salaries in excess of the federal salary cap. Questioned Costs: $900. Context: Three (3) of forty (40) payroll transactions selected for testing. Cause: The Organization’s internal draw down tracking worksheet contained an old salary for the employee or salary was not updated as employees are added to and removed from the grant throughout the fiscal year. Effect: Resulted in the Organization charging three employees' salaries in excess of the Federal salary cap. Repeat Finding: No. Recommendation: CLA recommends formatting the internal HRSA draw down worksheet to include conditional formatting when an employee's pay per pay period exceeds the amount that would be allowed by the federal salary cap. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H8F40833-01-00; H8024103-11-00 Award Periods: April 1, 2021 – March 31, 2023; May 1, 2022 – April 30, 2023 Type of Finding: Immaterial noncompliance and Significant deficiency in internal control over compliance Criteria: The Consolidated Appropriations Act, 2023, Division H, § 202 indicates "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II." If salaries are in excess of the salary cap, the amount of salaries charged to a federal award must be reduced to the Executive Level II amount, with any excess being paid by the non-federal entity with non-federal funds. Condition: The Organization charged three employees' salaries in excess of the federal salary cap. Questioned Costs: $900. Context: Three (3) of forty (40) payroll transactions selected for testing. Cause: The Organization’s internal draw down tracking worksheet contained an old salary for the employee or salary was not updated as employees are added to and removed from the grant throughout the fiscal year. Effect: Resulted in the Organization charging three employees' salaries in excess of the Federal salary cap. Repeat Finding: No. Recommendation: CLA recommends formatting the internal HRSA draw down worksheet to include conditional formatting when an employee's pay per pay period exceeds the amount that would be allowed by the federal salary cap. Views of Responsible Officials: There is no disagreement with the audit finding.