Current through Register Vol. 48, No. 12, March 22, 2024
a)
Purchase of service providers shall furnish the Department with any required
reports during the contract period in a manner specified in this
Section.
b) When all of the
contracts with one provider expire or terminate prior to the end of the fiscal
year, the revenue and expense sections of the Department's cost report shall be
submitted with an opinion from a certified public accountant. This report and
opinion shall be submitted within 30 days after the expiration or termination
of the contract.
c) Any purchase of
service provider (with the exception of day care providers, unless they are
involved in cost based rate negotiations authorized under 89 Ill. Adm. Code
356.30(a),
and governmental agencies) who receives $150,000 or more from the Department
within the State fiscal year shall submit an agency-wide certified independent
audit using the requirements in this Section and in accordance with Government
Auditing Standards, 2003 (no later amendments or editions included), available
from the Government Accountability Office, 441 G Street, NW, Washington, DC
20548.
1) All governmental and not-for-profit
organizations must also consider federal audit guidelines and complete audits
in accordance with the guidance specified in the Office of Management and
Budget (OMB) Circular A-133 Audits of States, Local Governments, and Non-Profit
Organizations, when required by A-133 to conduct an audit. If required to
prepare an audit in accordance with OMB Circular A-133, the audit must still
contain the information listed in subsection (d).
2) The Department may also request, at its
sole discretion, certified agency-wide or limited-scope audits from any
purchase of service providers (including day care providers and government
entities) to ensure compliance with Federal, State and Department requirements.
All governmental entities audited by the Illinois Auditor General will submit
those audits to the Department within 60 days after completion.
3) The audits for all entities must be
completed within 180 calendar days after the completion of the provider's
fiscal year.
4) A waiver of the
certified audit requirement may be requested in writing and directed to the
Department's Deputy Director of Monitoring and Quality Assurance. The request
must state the reason for the waiver and shall be submitted prior to the due
date of the report.
5) A request
for an extension of the deadline for submittal of the audit and/or costs report
beyond the time frame specified in subsection (c)(3) must be submitted in
writing to the central office manager responsible for the administration of the
reimbursement rates and excess revenue by the required due date in subsection
(c)(3).
6) The Department will
respond to the requests for waivers or extensions within 30 business days,
specifying approval or rejection of the waiver or extension. Waivers are
approvable if the cost to the provider outweighs the benefit of the
requirement. Extensions beyond 60 calendar days are approvable when
circumstances beyond the agency's control prevent a timely submission (e.g.,
death, hospitalization or a change at the agency) or when a further extension
from another State or federal agency requiring the same reports has been
granted.
d) The
agency-wide certified independent and OMB A-133 audit report submission shall
contain the following information:
1)
Independent Auditor's Report - an expression of the auditor's opinion on the
financial statement;
2) Statement
of Financial Position (balance sheet);
3) Statement of Activities - a statement of
revenue and expenses and changes in net assets. This statement should
specifically identify revenue received for the Department's programs. The cost
of management and general expenses should be shown;
4) Statement of Cash Flows;
5) Statement of functional expenses for the
agency, including management and general expenses and fundraising expenses.
This schedule should show by functional and natural classifications the
expenses for each individual program to enable identification of costs covered
by Department funding;
6) Notes to
the financial statements, including, but not limited to, a note on the basis of
accounting and the basis for recording and method for depreciation of
assets;
7) Reports on Compliance
and Internal Controls Over Financial Reporting Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards;
and
8) A management letter from the
certified independent audit firm that specifies those accounting and internal
control deficiencies that merit attention.
e) Limited scope audits will be requested in
the contract program plan and defined for each situation. The audit report
shall include the objectives, scope and methodology; the audit results,
including findings, conclusions, and recommendations, as appropriate; a
reference to compliance with generally accepted government auditing standards,
as necessary; the views of responsible officials; and, if applicable, the
nature of any privileged and confidential information omitted. Reports shall be
received within the time frames specified in the contract.
f) Cost and Audit Reports are necessary to
evaluate the costs for all provider services. Unless the Department determines
that circumstances do not warrant the following action, noncompliance with the
fiscal reporting requirements included in this Part and the cost reporting
requirements in accordance with 89 Ill. Adm. Code
356.40 (Cost
Information Requirements of Providers) will result in:
1) withholding of rate increases;
or
2) non-renewal or termination of
the purchase of service contract; or
3) withholding of current contract payments
in full or in part for services provided. Such withholding of payments will
occur 60 days after the provider has received written notice from the Director
of the Department.