Finding Text
Finding 2023-01 Noncompliance with Federal and State Reporting Requirements
Assistance Listing Numbers:
93.958 Block Grants for Community Mental Health Services
93.959 Block Grants for Prevention and Treatment Substance Abuse
Federal Agency: U.S. Department of Health and Human Services
Passthrough Agency: Illinois Department of Human Services
Award Number/Year: 2023
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
The Organization did not submit its audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023. The Organization 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. This is a repeat finding (see Finding 2022-003 in the Summary of Prior Audit Findings).
Cause
This condition was due to the Organization being understaffed within its accounting and finance department resulting in 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 the Organization to delay providing funding for the current fiscal year.
Questioned Costs
None noted.
Recommendation
We recommend that management either 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner.
Views of Responsible Officials and Planned Corrective Actions
See corrective action plan.