M E M O R A N D U M
DATE: May 24, 2012
TO: Chief Executive Officers
DHS-Funded Community Services Providers
FROM: Ellen S. King
Chief, Bureau of Contract Compliance
Office of Contract Administration
SUBJECT: FISCAL YEAR 2012 YEAR-END FINANCIAL REPORTING
In the interest of full disclosure, transparency and accountability with regard to the use of public funds, financial reporting requirements, along with the enforcement of those requirements, have become increasingly rigorous. The Department of Human Services (DHS), as well as our provider partners, must be cognizant of and fully compliant with our statutory obligation to report to citizens how we are using their money. To that end, based upon a review of applicable Federal and State rules and regulations and/or the terms of your Community Service Agreement(s), DHS has determined that your agency is required to file year-end financial reports for State Fiscal Year 2012 (July 1, 2011 through June 30, 2012). The specific requirements and due date for your agency are listed on the "DHS Financial Reporting Checklist" which is enclosed.
Copy of the FY12 Memorandum to Chief Executive Officers (pdf)
OVERVIEW OF BASIC REQUIREMENTS
Agencies subject to FY2012 reporting requirements will submit one or more of the following documents:
- DHS Financial Reporting Checklist
- Consolidated Financial Report (CFR), web-based system
- Grant Report
- Independently Audited Financial Statements
- IRS Return or Report (IRS 990, 990EZ, 990PF or other)
- Form AG 990-IL
- Form 990T, UBIT
- Provider Demographic Information form
- Personnel/Administrative Information form
Electronic versions and samples of FY12 Financial Reporting information are listed below:
IMPORTANT INFORMATION ON FEDERAL FUNDS REPORTING
Seperate Accounting of ARRA Funds
American Recovery and Reinvestment Act (ARRA) funds, regardless of the amount received, must be separately reported to IDHS on all required FY12 financial reports, in addition to the separate reporting requirements for the Schedule of Federal Awards, if applicable. If your agency is required to submit unaudited financials, i.e., Grant Report, IRS return or Report (IRS 990EZ, 990 Pf or other), Form AG990-IL or Form 990T (UBIT), those too must clearly identify ARRA funds separately from non-ARRA funds. As a reminder you must:
- Keep the funds separate,
- Be timely in expenditures from the time when ARRA funds are received to the disbursements of the funds,
- Expend funds only to the specific program for which they are awarded, and
- Adhere to any other requirements as outlined in the American Recovery and Reinvestment Act of 2009 signed February 18, 2009.
The "DHS Financial Reporting Checklist" indicates which reports are required to be submitted. The Checklist also indicates the "Report Due Date" which is calculated from the end of the provider's fiscal year. If the Department does not know the end date of your fiscal year, then June 30TH is assumed. Please submit an Extension/Waiver/Modification form if your operating year end is incorrect in our records. The reports are due 120 days from the end of your fiscal year unless you request and are granted an extension. Please submit your reports electronically in .pdf format via email to: DHS.FY12FinancialReports@illinois.gov
If you are unable to submit electronic reports then paper forms may be submitted to:
Mr. Gary Beckman
Office of Contract Administration
Department of Human Services
222 South College, 2ND Floor
Springfield, Illinois 62704 -1875
Providers submitting paper forms should ensure that the reporting package is addressed correctly and that two (2) complete copies are enclosed.
DHS will approve reasonable requests for extensions of the due date for required reports and forms. Extension requests which are related to independent auditors' workloads and timeframes should be discussed, in advance, with such auditors. DHS recognizes that some providers are required to complete similar year-end reporting requirements for other state agencies and will grant extensions to coincide with the submission dates to other state agencies if documented on an extension request. Providers that have been granted extensions of their IRS 990 due date must submit a DHS extension request with the approved IRS extension attached.
DHS will also consider requests for waivers or modifications of its financial reporting requirements, but will approve them only when convincingly justified based on extenuating circumstances. DHS cannot waive federal requirements. No extension for submission of the Single Audit package can be granted beyond the OMB Circular A-133 nine-month or six-month (for audit periods ending after December 15, 2012) limit without documented Federal approval.
If your auditor will not have the report completed within the applicable timeframe, it is your responsibility to apply for an extension to the appropriate Federal agency. A "Request For Extension/Waiver/Modification" form is enclosed, along with instructions for its preparation and submission.
The decision of DHS regarding extension/waiver requests is final. The decision applies only to the current year reporting requirement, unless the response provided by the Department indicates otherwise.
SANCTIONS FOR NON-COMPLIANCE
Failure by the provider to comply with the reporting requirements described in this memorandum may result in suspension of the provider's current year contract payments. Any withheld funds will be paid to the provider when compliance has been achieved.
(NOTE: The Department's statutory ability to make current fiscal year payments, including payments that have been withheld, ends two (2) months after the close of the state fiscal year, i.e., August 31ST.)
If you have questions about this section or require and accessible version of a document posted in this section please contact the Office of Contract Administration at (217) 785-9260 or email: Brian Bond