Finding 34721 (2022-003)

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Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-20

AI Summary

  • Core Issue: The Single Audit reporting package for fiscal year 2021 was submitted late, violating 2 CFR Part 200 requirements.
  • Impacted Requirements: Grantees must submit the audit package within 30 days of receiving the audit report or nine months after the fiscal year end.
  • Recommended Follow-Up: Implement measures to ensure timely submission of the audit package to avoid high-risk classification in the future.

Finding Text

Finding Number: 2022-003 This finding is: X New Repeat from Prior Year? Year originally reported? Federal Program Names: Promotion of the Humanities Federal/State Partnership; Promotion of the Arts Grants to Organizations and Individuals Project Numbers: SO-263616-19, ZSO-283177-21, SO-283106-22; 1866149-52-C-20 Assistance Listing Numbers: 45.129; 45.024 Passed Through: N/A; Arts Midwest Federal Agencies: National Endowment for the Humanities; National Endowment for the Arts Criteria Reporting - 2 CFR Part 200 requires grantees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receiving the audit report or nine months after the fiscal year end. Condition During our testing, we noted that the Single Audit reporting package for fiscal year 2021 was not submitted to the FAC within the required timeframe. Questioned Costs None Context The complete reporting package was submitted on June 16, 2022. This was over two months after the audit report which was dated April 5, 2022. While the package was submitted within the nine-month window after the fiscal year end, it was considered late based on 2 CFR Part 200 requirements. Effect The Organization was not in compliance with 2 CFR Part 200 and was classified as a high-risk auditee for fiscal year 2022. Cause This finding was due to an oversight by the Organization?s management and accounting department. Recommendation The Organization should ensure that the Single Audit reporting package is submitted to the FAC within the required timeframe. Management Response Management concurs with this finding. See corrective action plan.

Corrective Action Plan

Illinois Humanities Council ? Single Audit Corrective Action Plan Finding 2022-003 ? Late Filing of 2021 Single Audit Reporting Package During audit testing it was discovered that the Single Audit reporting package for fiscal year 2021 was not submitted to the Federal Audit Clearinghouse (FAC) within the required timeframe. The Code of Federal Regulations 2 CFR 200 requires grantees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) with the earlier of 30 calendar days after receiving the audit report or nine months after the fiscal year end. Corrective Action Plan The Illinois Humanities Council had been outsourcing their accounting and finance functions to a third-party contractor when this finding occurred. It has since been identified that this third-party contractor was insufficiently performing contracted duties and this contract has been terminated as of December 31, 2022. To ensure that all Single Audit reporting packages are submitted in a timely manner according to 2 CFR 200 the Director of Finance and the Executive Director will work closely with the audit firm on timing of audit reports so as to meet the FAC timing requirement. The Board Chair and Treasure will also be notified once the Single Audit reporting package has been submitted to the FAC for transparency that reporting timing requirements have been met. Planned Completion Date 05/01/2023 Individuals Responsible for Executing Corrective Action Vicki Garza, Director of Finance Gabrielle Lyon, Executive Director

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
45.129 Promotion of the Humanities_federal/state Partnership $903,676
45.024 Promotion of the Arts_grants to Organizations and Individuals $24,919