FY14 Financial Reporting

Helping Families. Supporting Communities. Empowering Individuals.

DHS Mission: To assist our customers to achieve maximum self-sufficiency, independence and health through the provision of seamless, integrated services for individuals, families and communities.

M E M O R A N D U M

DATE: May 28, 2014

TO: Chief Executive Officers

FY14 DHS Community Services Providers

FROM: Ellen S. King

Chief, Bureau of Contract Compliance

Office of Contract Administration

SUBJECT: FISCAL YEAR 2014 YEAR-END FINANCIAL REPORTING REQUIREMENTS

Thank you for the services you provide to the Department of Human Services and to the Citizens of the State of Illinois. Your partnership and efforts of providing services to those in need are greatly appreciated. The purpose of this memo is to inform you of your year-end financial reporting requirements, as referenced in your FY14 Community Services Agreement (CSA), with the Department of Human Services.

If you have further questions after reading through this material, please visit our website at http://www.dhs.state.il.us/page.aspx?item=29741 or by calling the Office of Contract Compliance at (217) 524-1530 or submitting your question, via email, to DHS.FY14Reporting@Illinois.gov. Instructions on how to complete the various forms are also found at http://www.dhs.state.il.us/page.aspx?item=71665.


Copy of the FY14 Memorandum to Chief Executive Officers (pdf)


Where and How do You Submit Your Year-end Financial Reporting Documents?

All required year-end documents must be posted to the Centralized Repository Vault (CRV).

As each year-end financial item is reviewed individually, we ask that each item be uploaded to the CRV individually.

The fiscal year field should reflect "14" for all year-end FY14 financial items uploaded. Please make sure to select the appropriate fiscal year and document type when uploading the documents and please note the name of the file being uploaded on the DHS Reporting Checklist.

In addition, we ask you that you send an email to the Office of Contract Compliance (OCC), DHS.FY14Reporting@Illinois.gov, with your complete or any partial submission, to notify us of the posting.


Who do You Contact if You Have Trouble Getting into the CRV to Be Able to Post Your Documents?

If you need any assistance with registering for or posting to the CRV, you can either email DHS.CRVSupport@Illinois.gov for assistance or by contacting Aaliyah Bannister-Batie at (312) 793-4094.


How do You Know What Year-end Financial Reporting Documents are Required for Your Entity?

DHS Reporting Checklist

Please use the DHS Financial Reporting Checklist (which is enclosed) to ensure all your required documents are submitted.

This form has been preprinted with certain identifying information from the DHS Office of Contract Administration database. If any of the information is incorrect, the Provider Demographic Information Form should be updated with the correct information and returned with your submission.

The lower portion of the "DHS Financial Reporting Checklist" identifies the specific items that are required to be filed with an "X" next to the item. The Checklist also contains a management certification that must be signed by the CEO or CFO and the Board President or Treasurer. This form, along with all other required year-end financial items, must be submitted to DHS by posting to the Centralized Repository Vault (CRV). Please post the Checklist to the CRV with the file name of: Last 6 digits of your FEINFY14DHSCHECKLIST, e.g. 999999FY14DHSCHECKLIST.


What are the FY14 Audit Requirements and When are the Audits Due?

As outlined in section 17.3 of the FY14 Community Service Agreement, "any provider who receives $150,000 or more in funding from the State of Illinois, including all Departments or Agencies thereof, and whether state or federal funds and are NOT subject to OMB Circular A-133 shall provide audited financial statements conducted in accordance with Government Auditing Standards, within 180 days after the Provider's fiscal year ending on or after June 30, 2014".

"Providers subject to OMB Circular A-133 shall submit audited financial statements within 180 days after Provider's fiscal year ending on or after June 30, 2014".

If you are required to submit audited financial statements, please post the audited financial statements to the CRV with the file name of: Last Six Digits of your FEINFY14FS, e.g. 999999FY14FS.


How do You Know if Your Entity is Subject to OMB Circular A-133?

The Single Audit Act and Office of Management and Budget (OMB) Circular A-133

This act requires non-federal entities that expend equal to or in excess of $500,000 in federal awards to have an audit performed in accordance with the Single Audit Act. Federal award means federal financial assistance and federal cost-reimbursement agreements that non-federal entities receive directly from federal awarding agencies or indirectly from pass-through entities, such as DHS. Please discuss this with your auditor so that the appropriate type of audit is performed.

The Provider must meet the following audit requirements with respect to Federal pass-through grants:

For Institutions of higher education and other non-profit organizations (including hospitals) shall be subject to the audit requirements in the Single Audit Act Amendments of 1996 (31 U.S.C. Sections 7501-7507) and revised OMB Circular A-133 ("Audits of States, Local Governments and Non Profit Organizations").

State and local governments shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. Sections 7501-7507) and revised OMB Circular A-133 ("Audits of States, Local Governments and Non-Profit Organizations").

For-profit hospitals not covered by the audit provisions of revised OMB Circular A-133 shall be subject to the audit requirements of the Federal awarding agency.

Commercial organizations shall be subject to the audit requirements of the Federal awarding agency or the prime recipient as incorporated in the award document.

Note: The DHS Financial Reporting Checklist uses an indicator that a Single Audit is expected based upon award amounts and/or if a Single Audit has been submitted in the last three years. However, the final amount of spending determines if a Single Audit is actually required. It is the provider's responsibility to assess the need for a Single Audit after all expenditures are included. If your spending is less than $500,000 in federal expenditures, we ask that you certify this to us by checking the applicable statement on the "DHS Financial Reporting Checklist" which reads "We expended less than $500,000 in Federal funds from all sources, so we are not required to do an A-133."

If you are subject to OMB Circular A-133 requirements, please post the Single Audit to the CRV with the file name of: Last Six Digits of your FEINFY14SA, e.g. 999999FY14SA.


How Do You Request an Extension or Reporting Waiver if Needed?

Extension/Waivers/Modifications

Due dates of your audit requirements should be discussed with your auditor now! Requests for extensions, waivers or modifications of your financial reporting responsibilities will be considered in isolated cases based on extenuating circumstances. This form is available at http://www.dhs.state.il.us/page.aspx?item=71665. If your auditor has any questions, please refer them to the Office of Contract Compliance at (217) 524-1530. Please FAX your completed form to the Office of Contract Compliance at (217) 524-5529. You will be notified of the decision via fax.


Other Required Financial Reporting Documents - What are They and When are They Due?


 

Consolidated Financial Report (CFR)

As outlined in the FY14 CSA Agreement, Section 17.4 "providers shall submit Consolidated Financial Reports within 180 days after the Provider's fiscal year ending on or after June 30, 2014. The Consolidated Financial Report must cover the same period as the Audited Financial Statement cover. If the provider is under an audit requirement, the Consolidated Financial Reports must include an opinion from the report issuer on the Cost and Revenue schedules included in the Consolidated Financial Reports. The CFR will be available on the DHS website: http://www.dhs.state.il.us/page.aspx?item=71665.

Please post the CFR to the CRV with the file name of: Last 6 digits of your FEINFY14CFR, e.g.

999999FY14CFR.


 

"In Relation to" Opinion on CFR

Providers, whose fiscal year ends 06/30/14, that are required to submit a CFR, as well as audited financial statements, will need to include an independent certified public accountants' "In Relation to" Opinion rendered on the CFR Schedule of Program Revenue and Schedule of Program Costs. Please post the Opinion on the CFR to the CRV with the file name of: Last 6 digits of your FEINFY14CFROPINION, e.g. 999999FY14CFROPINION. A sample is available from our website: http://www.dhs.state.il.us/page.aspx?item=71665. If a provider is not required to submit independently audited financial statements, the CFR can be prepared in-house without the involvement of an independent certified public accountant.


 

Agreed Upon Procedures on CFR

Providers, whose fiscal year end is other than 06/30/14, that are required to submit a CFR, as well as audited financial statements, will need to include an independent certified public accountant's Agreed Upon Procedures rendered on the CFR Schedule of Program Costs. Please post the Agreed upon Procedures on CFR to the CRV with the file name of: Last 6 digits of your FEINFY14CFRAGREED, e.g. 999999FY14CFRAGREED. A sample is available from our website: http://www.dhs.state.il.us/page.aspx?item=71665.

If a provider is not required to submit independently audited financial statements, the CFR can be prepared in-house without the involvement of an independent certified public accountant.


 

Grant Report

This report is prepared on the state's fiscal year basis and displays total expenses and unallowable costs by DHS grant funded programs. The second page of the Grant Report, the Grant Unallowable Cost Summary, provides the details for such unallowable costs. Instructions for preparation accompany the Grant Report. Please post the Grant Report to the CRV with the file name of: Last 6 digits of your FEINFY14GR, e.g. 999999FY14GR. This form and instructions are available from our website: http://www.dhs.state.il.us/page.aspx?item=71665.


 

"In Relation to" Opinion on Grant Report

Providers, whose fiscal year ends 06/30/14, that are required to submit a Grant Report, as well as audited financial statements, will need to include an independent certified public accountants' "In Relation to" Opinion rendered on the Grant Report. Please post the Opinion to the CRV with the file name of: Last 6 digits of your FEINFY14GROPINION, eg. 999999FY13GROPINION. A sample is available from our website: http://www.dhs.state.il.us/page.aspx?item=71665.

If a provider is not required to submit independently audited financial statements, the Grant Report can be prepared in-house without the involvement of an independent certified public accountant.


 

Agreed Upon Procedures on Grant Report

Providers, whose fiscal year end is other than 06/30, that are required to submit a Grant Report, as well as audited financial statements, will need to include an independent certified public accountant's Agreed Upon Procedures Opinion rendered on the Grant Report. Please post the opinion to the CRV with the file name of: Last 6 digits of your FEINFY14GRAGREED, e.g. 999999FY14GRAGREED. A sample is available from our website: http://www.dhs.state.il.us/page.aspx?item=71665.

If a provider is not required to submit independently audited financial statements, the Grant Report can be prepared in-house without the involvement of an independent certified public accountant.


 

Grant Reconciliation and Recovery Form (GRRF)

These providers will also receive a Grant Reconciliation and Recovery Form (GRRF), due by August 15th. If the funds awarded are subject to the provisions of the Illinois Grant Recovery Act (30 ILCA 705/1 et seq.), any funds remaining at the end of the Agreement period which are not expended or legally obligated by Provider shall be returned to DHS within forty-five (45) days after the end of the Community Services Agreement. The provisions of 89 Ill. Adm. Code 511 shall apply to any funds awarded that are subject to the Illinois Grant Funds Recovery Act. This form and related instructions will be sent out under a separate mailing to you.


 

Provider Demographic Form

The Bureau of Contract Compliance maintains a data file for the contact person and mailing address for year-end financial reporting and other fiscal and administrative responsibilities. Please post the Form to the CRV with the file name of: Last 6 digits of your FEINFY14DEMO, eg. 999999FY14DEMO.


 

Personnel and Administrative Information Form

Each provider is required to provide selected information regarding personnel and administrative activities at their agency. Please post the Form to the CRV with the file name of: Last 6 digits of your FEINFY14DHSPAI, e.g. 999999FY14DHSPAI. This form is available from our website: http://www.dhs.state.il.us/page.aspx?item=71665.


 

Other Federal and State Tax Forms

IRS Return or Report (IRS 990, 990EZ, 990PF or other depending on your revenue and net asset amounts or if the entity is a private foundation) Please post to the CRV with the file name of: The last 6 digits of your FEINFY14IRS, e.g. 999999FY14IRS

Form 990T (UBIT) Please post to the CRV with the file name of: The last 6 digits of your FEINFY14UBIT, e.g. 999999FY14UBIT

Form AG 990- IL Please post to the CRV with the file name of: The last 6 digits of your FEINFY14AG990, e.g. 999999FY14AG990


Are there Sanctions for Non-Compliance?


 

Sanctions for Non-Compliance

Yes, there are sanctions for non-compliance. While we understand how long you are currently waiting for payment of services rendered, non-submittal, or incomplete submittal may result in the suspension of the provider's current year contract payments. Any withheld funds will be released to the provider when compliance has been achieved. Please direct any questions you have to (217) 524-1530 if you have any questions at all, so suspension activity does not have to occur. Note: The Department's statutory ability to make current fiscal year payments, including payments that have been withheld, ends on August 31. After that date, payments will be processed through the Court of Claims.


"Quick Reference Guide - DHS FY14 Required Year End Reporting"

Document Description CRV Naming Convention for file name Associated Document Type to Select While Posting to the CRV Document Due Date
DHS Reporting Checklist 999999FY14DHSCHECKLIST DHS Checklist 180 days after provider's fiscal year end date
Audited Financial Statements conducted in accordance with Government Auditing Standards 999999FY14FS Financial Statement Audit 180 days after provider's fiscal year end date
Single Audit - A133 Audit 999999FY14SA A-133 Audit 180 days after provider's fiscal year end date
Consolidated Financial Report (CFR) 999999FY14CFR CFR 180 days after provider's fiscal year end date
In Relation to Opinion on CFR 999999FY14CFROPINION CFR IRT 180 days after provider's fiscal year end date
Agreed Upon Procedures on CFR 999999FY14CFRAGREED CFR AGR 180 days after provider's fiscal year end date
Grant Reconciliation & Recovery Form 999999FY14GRRF GRRF August 15, 2014
Grant Report 999999FY14GR Grant Report 180 days after provider's fiscal year end date
In Relation to Opinion on Grant Report 999999FY14GROPINION Grant IRT 180 days after provider's fiscal year end date
Agreed Upon Procedures on Grant Report 999999FY14GRAGREED GRANT AGR 180 days after provider's fiscal year end date
Provider Demographic Form 999999FY14DEMO Provider Demographics Form 180 days after provider's fiscal year end date
Personnel and Administrative Form 999999FY14DHSPAI Personnel/Admin Form 180 days after provider's fiscal year end date
IRS Return or Report (IRS 990, 990EZ, 990PF) 99999FY14IRS Form 990 180 days after provider's fiscal year end date
Form 990T (UBIT) 999999FY14UBIT UBIT 180 days after provider's fiscal year end date
Form AG990-IL 999999FY14AG990 Form ILAG990 180 days after provider's fiscal year end date

Electronic versions and samples of FY14 Financial Reporting information are listed below:


Contact Us

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 Compliance at (217) 524-1530 or email: Brian Bond