REPORT DIGEST

ILLINOIS JOINING FORCES FOUNDATION

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  November 16, 2023

FINDINGS THIS AUDIT: 5

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 4 -- 4
Category 2:  0 -- 1 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  0 – 5 -- 5

FINDINGS LAST AUDIT: 5

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
Illinois Joining Forces Foundation’s
(Foundation) compliance with the specified
requirements which comprise a compliance
examination.  The Codification of
Statements on Standards for Attestation
Engagements (AT-C § 205.74) states a
practitioner “should express an adverse
opinion when the practitioner, having
obtained sufficient appropriate evidence,
concludes that 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, 2022.  The Foundation’s
financial audit covering the year ended
June 30, 2022, will be released under
separate cover.  In total, this report
includes five findings, four of which were
reported in the financial audit.

SYNOPSIS

• (22-5)	The Foundation failed to
comply with certain statutory requirements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

MANDATE NONCOMPLIANCE

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

During testing of statutory requirements,
we noted the following issues:

• The Foundation failed to provide copies
of donation letters for 26 of 26 (100%)
receipts, totaling $467,195.  As such, we
were unable to determine whether the
Foundation provided these letters in
accordance with the Department of Veterans’
Affairs Act or the Foundation’s Financial
Controls Policy, or whether the amounts
described in the letters agree to the
Foundation’s general ledger.

• The Foundation failed to provide
supporting documentation to substantiate
the Foundation’s treasurer had obtained a
surety bond.

• The Foundation’s officers and directors
were not indemnified during the entirety of
Fiscal Year 2022.  We determined the
Foundation’s insurance policy expired prior
to the examination period, and was not
renewed until July 9, 2021.

• The Foundation did not timely file its
Calendar Year 2021 General Not for Profit
Corporation Act Annual Report with the
Office of the Secretary of State.  The
report was filed 89 days late.

• The Foundation failed to respond to our
inquiries about whether any loans were made
to Foundation directors or officers during
Fiscal Year 2022.  As such, we were unable
to determine whether such loans were made.

• The Foundation failed to provide a copy
of its Calendar Year 2022 General Not for
Profit Corporation Act Annual Report
submitted to the Office of the Secretary of
State. As such, we were unable to determine
whether the Foundation’s registered agent
and address were accurately reported.
(Finding 5, pages 25-27)

This finding has been reported since 2018.

We recommended the Foundation strengthen
its controls over retention and maintenance
of documentation supporting its compliance
with its statutory responsibilities in
accordance with the Department of Veterans’
Affairs Act and improve its responsiveness
to requests for documentation in accordance
with the Illinois State Auditing Act.
Additionally, we recommended the Foundation
retain documentation that it obtained a
fidelity or surety bond for the treasurer
in accordance with the Department of
Veterans’ Affairs Act and maintain
indemnification for its Board of Directors.
Finally, we recommended the Foundation
timely file required reports with the
Office of the Secretary of State.

The Foundation stated that it had developed
processes to improve the retention and
maintenance of documentation. The
Foundation stated it does have evidence of
a surety bond. The Foundation stated it
would continue to strengthen its processes
of responding to audit requests to ensure
that findings are accurate and not a result
of failure to respond.

In an accountant’s comment, we stated that
we did not agree with the Foundation’s
apparent position that this finding was
inaccurate in any way. As enumerated within
the finding, the Foundation failed to
provide specific documentation we requested
during the examination, and as a result, we
were unable to perform certain procedures
which are part of a compliance examination.
The Foundation did not provide this
documentation to us either earlier during
the engagement when these matters were
first brought to its attention or in the
formal finding stage of the engagement.

OTHER FINDINGS

The remaining findings pertain to failure
to present adequate financial statements
and notes, inadequate internal control
structure, inadequate controls over board
membership, and lack of documentation to
substantiate compliance with grant
agreements.  We will review the
Foundation’s progress towards the
implementation of our recommendations in
our next compliance examination.

AUDITOR’S OPINION

The financial audit was separately
released.  The auditors stated the
financial statements of the Foundation as
of and for the year ended June 30, 2022,
are not fairly stated in all material
respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Foundation for the year
ended June 30, 2022, as required by the
Illinois State Auditing Act.  Because of
the noncompliance described in Findings
2022-001 through 2022-003, and Finding
2022-005, the accountants stated the
Foundation did not materially 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

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