Audit 46697

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Esperanza Health Center, Inc. and Controlled Entity (the Center) under programs of the federal government for the year ended June 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Center it is not intended to and does not present the financial position, changes in net assets or cash flows of the Center. Federally funded amounts that are passed through state and local government agencies are reported as federal awards. Expenditure amounts are classified based on information provided by the pass-through agencies at the time of preparation of the Schedule.The Schedule includes expenditures of the U.S. Department of Health and Human Services (HHS)Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program of the Center for theperiods of availability which ended in the year ended June 30, 2022.

Title: PROVIDER RELIEFT FUND Accounting Policies: Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution - Assistance ListingNumber 93.498For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) RuralDistribution (PRF) program, HHS has indicated the amounts on the Schedule be reported correspondingto reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assignedto "Payment Received Periods" (each, a Period) based upon the date each payment from the PRF wasreceived. Each Period has a specified Period of Availability and timing of reporting requirements. Entitiesreport into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after theend of the Period of Availability). The Schedule includes $861,725 received from HHS between July 1,2020 and December 31, 2020. In accordance with the guidance from HHS, the Schedule includesexpenditures for the period of availability which ended in the year ended June 30, 2022 (i.e. Period 2).The Schedule includes the following entity that received the Provider Relief Fund and American RescuePlan (ARP) Rural Distribution program:Legal Entity Name Tax Identification NumberEsperanza Health Center 23-2480701