Finding 34722 (2022-002)

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

AI Summary

  • Core Issue: The Organization submitted inaccurate Federal Financial Reports (FFRs) with material misstatements.
  • Impacted Requirements: FFRs must be accurate, complete, and consistent with accounting records before submission to the NEH.
  • Recommended Follow-Up: Implement measures to ensure future FFRs are correct and align with financial records.

Finding Text

Finding Number: 2022-002 This finding is: New X Repeat from Prior Year? Year originally reported? 2021 Federal Program Name: Promotion of the Humanities Federal/State Partnership Project Numbers: SO-263616-19, SO-283106-22 Assistance Listing Number: 45.129 Passed Through: N/A Federal Agency: National Endowment for the Humanities Criteria Reporting - A final performance report and a final Federal Financial Report, SF 425 (FFR), shall be submitted to the NEH Office of Grant Management. Before submitting an FFR, the recipient must ensure that the information submitted is accurate, complete, and consistent with their accounting records. Condition During our testing, we identified material misstatements in the amounts reported by the Organization in the FFRs. Questioned Costs None Context The FFRs reported incorrect amounts for federal funds authorized, unobligated balance of federal funds, and/or recipient share of expenditures. The current year expenditures reported by the Organization were correct. As a result, the material misstatements identified did not have any effect on the amounts reported in the SEFA or the financial statements. Effect Inaccurate financial data was reported to the federal awarding agency due to the FFRs being incorrect. Cause This finding was due to an oversight by the Organization?s management and accounting department. Recommendation The Organization should ensure that the FFRs submitted are accurate, complete, and consistent with their accounting records. Management Response Management concurs with this finding. See corrective action plan.

Corrective Action Plan

Illinois Humanities Council ? Single Audit Corrective Action Plan Finding 2022-002 ? Material Misstatements on Federal Financial Report SF425 During audit testing material misstatements were identified in the amounts reported by the Organization on the Federal Financial Report (FFR) SF425 for NEH Grant SO-263616-19 as of October 31, 2022. The FFR reported incorrect amounts for federal funds authorized, unobligated balance of federal funds and recipient share of expenditures. Corrective Action Plan Upon further review of NEH Grant SO-263616-19 Federal Financial Report (FFR) as of October 31, 2021, it was determined that information on the originally submitted SF425 FFR was incorrect. This finding has been addressed in the Illinois Humanities Councils FY21 Single Audit under Finding #2021-001. Since incorrect information from the October 31, 2021, FFR was carried forward this cause the October 31, 2022, SF425 FFR to be incorrect as well. It has been acknowledged that some of the wording and descriptions on the SF425 instructions and form were misunderstood and inaccurately interpreted by accounting staff, thus resulting in wrong information being provided. To ensure accuracy of data being reported on all SF425 FFR?s going forward the Director of Finance will establish and maintain an accurate understanding of the SF425 form and instructions. The Director of Finance will also provide detailed reconciliations of data being reported on the FFR?s that will then be reviewed with the Director of Development and Executive Director for accuracy prior to the FFR being submitted. Completed FFR?s will also be shared with the Board Chair and Treasurer for transparency of data being submitted. Should any questions come up while the Director of Finance is completing FFR?s they will reach out directly to the organizations NEH Grant Manager for assistance to make sure any issues are addressed prior to submission of FFR?s. Planned Completion Date 05/01/2023 Individuals Responsible for Executing Corrective Action Vicki Garza, Director of Finance Morven Higgins, Director of Development Gabrielle Lyon, Executive Director Board Chair Treasurer

Categories

Reporting

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