Finding Text
Finding 2025-004 Noncompliance with Federal and State Financial Reporting Requirements Assistance Listing Numbers 93.959 Block Grants for Prevention and Treatment of Substance Abuse 93.958 Block Grants Block Grants for Community Mental Health Services Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration Passthrough Agency Illinois Department of Human Services Award Year 2025 Criteria Uniform Guidance stipulates that entities required to complete a single audit must submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports 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. Additionally, the Illinois Grant Accountability and Transparency Act (GATA) stipulates that entities required to complete a single audit who received a grant from a State of Illinois agency must submit financial statements audited in accordance with Government Auditing Standards, SEFA, Consolidated Year-End Financial Report (CYEFR), and certain other required documents to the State of Illinois GATA portal. This submission is also due 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 HSI successfully obtained extensions for filing its audit report package with various funding sources. However, extensions are not permitted for Single Audit reporting requirements. As a result, HSI did not submit the required documents to the Federal Audit Clearinghouse within nine (9) months of June 30, 2025. In addition, HSI did not submit the required documents to the GATA portal within nine (9) months after June 30, 2025. Cause This condition was due to HSI experiencing delays in obtaining certain grant-related financial information from funding sources thus preventing the audit process from beginning at an earlier date. Effect The effect is that noncompliance with financial reporting deadlines could cause funding sources for HSI to delay providing funding for the current fiscal year. Questioned Costs None noted. Repeat Finding Yes, see Finding 2024-004 in the summary schedule of prior audit findings. Recommendation We recommend that management review and evaluate its current processes to determine how to improve them so that they will be able to meet all financial reporting deadlines in the future. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.