Audit 315380

Finding 2023-01 Improper Reconciliation of Cash Criteria In order to maintain proper internal controls over cash, it is imperative that cash accounts be properly reconciled. Condition UMARC cash balance as of June 30, 2023 was not properly reconciled. Cause This condition was due to UMARC’s accounting data file becoming corrupted during the fiscal close process. UMARC did not have a backup of its accounting data file as of June 30, 2023 to use to recover its accounting data. As such, certain transactions had to be re-input into an older back up data file in order to recreate the financial accounting records. During the process, there were several checks input with incorrect dates for the previous fiscal year (FY2022) resulting in a material misstatement of the cash balance. Effect The effect is that cash and beginning net assets were overstated by $316,455. Additionally, controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware.

Finding 2023-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.959 Block Grants for Prevention and Treatment Substance Abuse Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois Department of Human Services Award Number/Year 2023 Finding 2023-02 Noncompliance with Federal and State Reporting Requirements Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition UMARC did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. UMARC also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. Cause This condition was due to UMARC’s accounting data file becoming corrupted during the fiscal close process. As such, there was a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for UMARC to delay providing funding for the current fiscal year.

Finding 2023-01 Improper Reconciliation of Cash Criteria In order to maintain proper internal controls over cash, it is imperative that cash accounts be properly reconciled. Condition UMARC cash balance as of June 30, 2023 was not properly reconciled. Cause This condition was due to UMARC’s accounting data file becoming corrupted during the fiscal close process. UMARC did not have a backup of its accounting data file as of June 30, 2023 to use to recover its accounting data. As such, certain transactions had to be re-input into an older back up data file in order to recreate the financial accounting records. During the process, there were several checks input with incorrect dates for the previous fiscal year (FY2022) resulting in a material misstatement of the cash balance. Effect The effect is that cash and beginning net assets were overstated by $316,455. Additionally, controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware.

Finding 2023-02 Noncompliance with Federal and State Reporting Requirements Assistance Listing Numbers 93.959 Block Grants for Prevention and Treatment Substance Abuse Program Federal Agency U.S. Department of Health and Human Services Passthrough Agency Illinois Department of Human Services Award Number/Year 2023 Finding 2023-02 Noncompliance with Federal and State Reporting Requirements Criteria Uniform Guidance requires that single audits be completed, and the reporting package submitted to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period. Condition UMARC did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. UMARC also didn’t submit its audited financial statements, SEFA, CYEFR and other required information to the GATA portal within six (6) months after June 30, 2023. Cause This condition was due to UMARC’s accounting data file becoming corrupted during the fiscal close process. As such, there was a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit. Effect The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for UMARC to delay providing funding for the current fiscal year.