EIN: 320115907
UEI: MP5EWDCM5QS6
Audited by: CliftonLarsonAllen LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 20, 2026 (42 days ago).
What is a management decision? →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.
Show full finding ▾Hide full finding ▴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.
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
FAC accepted this audit on March 4, 2025 — management decision was due September 4, 2025.
While the Organization has a procurement policy in place that meets the requirements of Uniform Guidance, the Organization did not create and retain appropriate documentation for the method of procurement utilized. Questioned Costs: 93.224/93.527: $80,057. 93.526: $38,515. Context: For one transaction selected for testing under assistance listing number (ALN) 93.224/93.527 the Organization utilized the sole source method of procurement but did not maintain documentation justifying why the use of this method was appropriate. For one transaction selected for testing under ALN 93.526 the Organization purchased medical equipment which was subject to the simplified acquisition threshold for procurement, and did not obtain an appropriate number of price quotes prior to completing the purchase. Cause: Oversight Effect: Lack of following procurement procedures could result in the Organization engaging vendors who are not the most efficient or economical. Repeat Finding: No. Recommendation: CLA recommends the Organization maintain an audit trail for all procurements. This can be done electronically for efficiency. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Procurement Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program & Health Center Infrastructure Support Assistance Listing Number: 93.224/93.527 & 93.526 Federal Award Identification Number: H8GCS47470-01-01 & C8ECS44866-01-00 Award Periods: December 1, 2022 – December 31, 2023; September 15, 2021 – September 14, 2024 Type of Finding: Immaterial noncompliance and significant deficiency in internal control over compliance Criteria: § 200.320 Methods of procurement to be followed: The non-Federal entity must have and use documented procurement procedures, consistent with the standards of this section and § 200.317, 200.318, and 200.319 for any of the approved procurement methods used for the acquisition of property or services required under a Federal award or sub-award. Condition: While the Organization has a procurement policy in place that meets the requirements of Uniform Guidance, the Organization did not create and retain appropriate documentation for the method of procurement utilized. Questioned Costs: 93.224/93.527: $80,057. 93.526: $38,515. Context: For one transaction selected for testing under assistance listing number (ALN) 93.224/93.527 the Organization utilized the sole source method of procurement but did not maintain documentation justifying why the use of this method was appropriate. For one transaction selected for testing under ALN 93.526 the Organization purchased medical equipment which was subject to the simplified acquisition threshold for procurement, and did not obtain an appropriate number of price quotes prior to completing the purchase. Cause: Oversight Effect: Lack of following procurement procedures could result in the Organization engaging vendors who are not the most efficient or economical. Repeat Finding: No. Recommendation: CLA recommends the Organization maintain an audit trail for all procurements. This can be done electronically for efficiency. Views of Responsible Officials: There is no disagreement with the audit finding.
Actions taken in response to finding: Esperanza will: 1. Sole source justification - Implement a Summary Approval and Signoff Sheet (SASS) for new contracts that documents, among other things, the justification for sole source purchases. 2. Create a pre-approved vendors list to streamline procurement while ensuring compliance. a. Require justification and periodic review for vendor inclusion 3. Review, on an annual basis, nonpersonnel costs charged to federal grants to ensure compliance. Name(s) of the contact person(s) responsible for corrective action: Ryan Gadia Planned completion date for corrective action plan: June 30, 2025
The Organization did not check to see if a vendor was suspended or debarred prior to entering a contract with the vendor. Questioned Costs: $38,515. Context: The Organization purchased medical equipment from a vendor without first verifying the vendor was not suspended or debarred. Cause: Oversight Effect: Formalized procedures should be in place to ensure the Organization does not engage with a vendor that is debarred, suspended, or otherwise excluded. Repeat Finding: No. Recommendation: CLA recommends the Organization update its procurement policy to include procedures that a vendor be verified as not being debarred, suspended, or excluded. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Suspension and Debarment Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Infrastructure Support Assistance Listing Number: 93.526 Federal Award Identification Number: C8ECS44866-01-00 Award Periods: September 15, 2021 – September 14, 2024 Type of Finding: Immaterial noncompliance and significant deficiency in internal control over compliance Criteria: 2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6 outlines that the non-Federal entity must verify that the agency in which it is entering into a contract is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The Organization did not check to see if a vendor was suspended or debarred prior to entering a contract with the vendor. Questioned Costs: $38,515. Context: The Organization purchased medical equipment from a vendor without first verifying the vendor was not suspended or debarred. Cause: Oversight Effect: Formalized procedures should be in place to ensure the Organization does not engage with a vendor that is debarred, suspended, or otherwise excluded. Repeat Finding: No. Recommendation: CLA recommends the Organization update its procurement policy to include procedures that a vendor be verified as not being debarred, suspended, or excluded. Views of Responsible Officials: There is no disagreement with the audit finding.
Action taken in response to finding: Esperanza will: 1. For new vendors – review if the vendor is included in the federal list of debarred, suspended, or excluded vendors 2. For existing vendors – review, on an annual basis, if vendors are included in the federal list of debarred, suspended, or excluded vendors Name(s) of the contact person(s) responsible for corrective action: Ryan Gadia Planned completion date for corrective action plan: June 30, 2025
FAC accepted this audit on March 14, 2024 — management decision was due September 14, 2024.
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.
Show full finding ▾Hide full finding ▴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.
Action taken in response to finding: Esperanza reviewed the current year’s HRSA drawdown sheet and updated all personnel salaries. We will also revise the draw down sheet so each person’s current salary is visible each month, and apply conditional formatting to highlight any person making in excess of the salary cap. Name(s) of the contact person(s) responsible for corrective action: Ryan Gadia Planned completion date for corrective action plan: May 31, 2024. If there are any questions regarding this plan, please call Ryan Gadia at (773) 640-5792.
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
FAC accepted this audit on May 23, 2022 — management decision was due November 23, 2022.
FAC accepted this audit on December 6, 2020 — management decision was due June 6, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on November 27, 2018 — management decision was due May 27, 2019.
FAC accepted this audit on November 12, 2017 — management decision was due May 12, 2018.
FAC accepted this audit on December 8, 2016 — management decision was due June 8, 2017.
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