Finding Text
Criteria
FLF has grant agreements from the State of Illinois with terms requiring compliance with financial reporting requirements in accordance with Uniform Guidance and the State of Illinois’ Grant Accountability and Transparency Act (GATA). As such, for the year ended July 31, 2023, FLF is required to submit audited financial statements, a schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse and the same audit package plus a Consolidated Year End Financial Report (CYEFR) to the GATA portal. The due date for submission of the audit package to the GATA portal is six (6) months after FLF’s fiscal year-end. The due date for submission of the audit package to the Federal Audit Clearinghouse is nine (9) months after FLF’s fiscal year-end.
FAMILY LEGACY FOUNDATION
Schedule of Findings and Questioned Costs
Year ended July 31, 2023
25
Section III - Findings and Questioned Costs Relating to Compliance Over Federal Awards (continued)
Condition
FLF did not submit its audited financial statements, SEFA and CYEFR and other required information to the Federal Audit Clearinghouse website and GATA portal within (9) months and six (6) months, respectively, after July 31, 2023.
Cause
This condition was due to FLF not identifying federal funding passed through the State of Illinois until after receiving notification from the State of Illinois that it had provided enough funding to require that FLF submit a single audit as a part of maintaining compliance with its grant agreements with the State of Illinois.
Effect
The effect is that controls over the financial reporting process were significantly weakened thereby substantially increasing the risk that material misstatements could be included in the financial statements, SEFA, and CYEFR without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FLF to suspend funding until compliance is achieved.