Finding 964100 (2023-002)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The Organization failed to submit required Single Audit and GATA reporting packages on time for fiscal year 2022.
  • Impacted Requirements: Noncompliance with 2 CFR Part 200 and the Illinois GATA, leading to a classification as a high-risk auditee.
  • Recommended Follow-Up: Establish a schedule for timely financial reporting and update financial policies for board approval.

Finding Text

Finding 2023-002 – Noncompliance with Federal and State Reporting Requirements This finding is: New X Repeat from Prior Year Year originally reported? 2022 Federal Program Name: Coronavirus Emergency Supplemental Funding Program Project Numbers: 546-000-2413/820010 Assistance Listing Number: 16.034 Passed Through: Illinois Criminal Justice Information Authority Federal Agency: U.S. Department of Justice 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. Additionally, the Organization has grant agreements from State of Illinois agencies with terms requiring compliance with the State of Illinois Grant Accountability and Transparency Act (GATA). The Organization is also required to submit the same Single Audit reporting package plus a Consolidated Year-End Financial Report (CYEFR) to the GATA portal within nine months after the fiscal year-end. Condition During our testing, we noted that the Single Audit and GATA reporting packages were not submitted within the required timeframe for fiscal year 2022. Questioned Costs None Context The complete reporting packages were submitted to the FAC and GATA portals in July 2023. This was more than nine months after the fiscal year end. Effect The Organization was not in compliance with 2 CFR Part 200 and was classified as a high-risk auditee for fiscal year 2023. Cause This Organization underwent a change of accountants from fiscal year 2021 to fiscal year 2022 and subsequent change of accountants after fiscal year 2022. As such, there was a delay in completing the recording of year-end financial transactions, performing account reconciliations, and preparing financial reports for fiscal year 2022 as needed for the audit.Recommendation We recommend that current accounting personnel establish a schedule for completing the recording of all financial transactions, preparation of account reconciliations, and financial reports, including a CYEFR and SEFA (if applicable). This should be done in a timely manner to allow for a review by management and the board of directors. We further recommend that these procedures be included in an updated set of financial policies and procedures that are reviewed and approved by the board of directors. Management Response Management concurs with this finding. See corrective action plan.

Categories

Reporting

Other Findings in this Audit

  • 387656 2023-001
    Material Weakness Repeat
  • 387657 2023-001
    Material Weakness Repeat
  • 387658 2023-002
    - Repeat
  • 964098 2023-001
    Material Weakness Repeat
  • 964099 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.034 Coronavirus Emergency Supplemental Funding Program $1.33M
21.027 Coronavirus State and Local Fiscal Recovery Funds $887,646
97.024 Emergency Food and Shelter National Board Program $697,162
16.575 Crime Victim Assistance $420,684
14.267 Continuum of Care Program $29,980
14.218 Community Development Block Grants/entitlement Grants $24,245