Finding 1169713 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-20
Audit: 382735
Organization: Esperanza Health Centers (IL)

AI Summary

  • Core Issue: The Organization submitted an inaccurate SF-425 Federal Financial Report for the award period, missing the correct unobligated balance.
  • Impacted Requirements: This finding relates to the need for effective internal controls as outlined in CFR § 200.303, ensuring compliance with federal award management.
  • Recommended Follow-Up: The Organization should implement a thorough review process for all SF-425 reports to ensure accuracy in grant drawdowns and unobligated balances.

Finding Text

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 Number: H80CS24103-13-00; H80CS24103-14-04 Award Periods: May 1, 2024 – April 30, 2025; May 1, 2025 – April 30, 2026 Criteria: CFR § 200.303 Internal controls states that the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The Organization filed a Standard Form 425 (SF-425) Federal Financial Report which included inaccurate information. Questioned Costs: None. Context: The SF-425 filed was for the project period beginning May 1, 2024 through April 30, 2025 and failed to include the correct amount for an unobligated balance. Cause: Oversight. Effect: Inaccurate report filed. Repeat Finding: No. Recommendation: We recommend the Organization closely review all SF-425 reports filed to ensure that the grant drawdowns reconcile to the amount reported as federal share of expenditures and any unobligated balances/carryover requests are done promptly. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Health Center Program – Assistance Listing No. 93.224 & 93.527 Recommendation: CLA recommends that the Organization review its FFR to ensure that the grant drawdowns reconcile to the amount reported as federal share of expenditures and any carryover requests are done promptly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Moving forward, we will require one person to prepare the FFR and another person to review prior to submission.. Name(s) of the contact person(s) responsible for corrective action: Ryan Gadia, CFO, and Juan Cardenas, Controller Planned completion date for corrective action plan: June 30, 2025

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $386,335
21.024 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM (CDFI RRP) $226,462
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $201,479
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $168,487
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $137,597
93.185 IMMUNIZATION RESEARCH, DEMONSTRATION, PUBLIC INFORMATION AND EDUCATION TRAINING AND CLINICAL SKILLS IMPROVEMENT PROJECTS $131,739
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $33,775
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $25,000
93.526 GRANTS FOR CAPITAL DEVELOPMENT IN HEALTH CENTERS $13,260
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $11,302