REPORT DIGEST

ILLINOIS JOINING FORCES FOUNDATION

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  January 13, 2021

FINDINGS THIS AUDIT:  7

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 5 -- 6
Category 2:  0 -- 1 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 6 -- 7

FINDINGS LAST AUDIT: 6

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State
laws and regulations (material
noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, Iles Park
Plaza, 740 E. Ash Street, Springfield, IL
62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION
Because of the significance and
pervasiveness of the findings described
within the report, the accountants
expressed an adverse opinion on the
Foundation’s compliance with the
specified requirements which comprise a
State compliance examination.  The
Codification of Statements on Standards
for Attestation Engagements (AT-C §
205.72) states a practitioner “should
express an adverse opinion when the
practitioner, having obtained sufficient
appropriate evidence, concludes the
misstatements individually or in the
aggregate, are both material and
pervasive to the subject matter.”

This digest covers the compliance
examination of the Foundation for the
year ended June 30, 2019.  The
Foundation’s financial audit covering the
year ended June 30, 2019 will be released
under separate cover.  In total, this
report includes seven findings, five of
which are reported in the financial
audit.

SYNOPSIS

• (19-6) The Foundation failed to comply
with certain statutory requirements.
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO COMPLY WITH STATUTORY
REQUIREMENTS

The Illinois Joining Forces Foundation
(Foundation) failed to comply with
certain statutory requirements.

During testing, we requested the
Foundation provide us with a listing of
all donation letters sent during the
examination period.  In response,
Foundation management identified 7
letters, but the Foundation’s records
show an additional 8 receipts, totaling
$401,039, for which letters should have
been sent.

Due to these conditions, we were unable
to conclude whether the Foundation’s
population records were sufficiently
precise and detailed under the
Attestation Standards promulgated by the
American Institute of Certified Public
Accountants (AT-C § 205.35) to test the
Foundation’s donation letters.

Even given the population limitations
noted above which hindered the ability of
the accountants to conclude whether
selected samples were representative of
the population as a whole, we performed
testing and noted the following:

• 4 of 7 (57%) written notices tested,
totaling $82,000, did not include the
date the contribution was received by the
Foundation, nor did they include
disclosure that either no goods or
services were exchanged for the
contribution or the goods or services
exchanged with its fair value for the
contribution, as required by Section VII
of the Foundation’s Financial Controls
Policy.

• The dollar amount specified in 1 of 7
(14%) written notices tested, totaling
$2,000, was not recognized in the
Foundation’s financial records.

We also noted the Foundation’s Treasurer
did not have a fidelity or surety bond
during the examination period.  (Finding
6, pages 34-35)

We recommended the Foundation implement
controls to ensure all gifts, grants,
donations, and bequests are tracked and a
complete listing is maintained.  We also
recommended the Foundation perform
periodic reconciliations between the
listing and accounting records to ensure
completeness.  In addition, we
recommended the Foundation develop a
standard letter or template for sending
to donors to ensure all required
information is included.  Finally, we
recommended the Foundation obtain a
fidelity or surety bond for the Treasurer
in accordance with the Act.

Foundation personnel generally agreed
with the issues identified and indicated
they have taken corrective action.

OTHER FINDINGS

The remaining findings pertained to
inadequate financial reporting and
controls, failure to present adequate
financial statements and notes, an
inadequate internal control structure, a
lack of documentation to substantiate
compliance with grant agreements,
incomplete and inconsistent board
membership information, and procedural
deficiencies.  We will review the
Foundation’s progress towards the
implementation of our recommendations in
our next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Foundation for the
year ended June 30, 2019, as required by
the Illinois State Auditing Act.  Because
of the effect of the noncompliance
described in Findings 2019-001 through
2019-007, the accountants stated the
Foundation did not comply with the
requirements described in the report.

This compliance examination was conducted
by the Office of the Auditor General’s
staff.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:cmd