REPORT DIGEST

CAPITAL DEVELOPMENT BOARD

STATE COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  May 3, 2023

FINDINGS THIS AUDIT: 11

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  6 -- 5 -- 11
Category 3:  0 -- 0 -- 0
TOTAL:  6 -- 5 -- 11

FINDINGS LAST AUDIT: 9

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

This digest covers the Capital
Development Board’s (Board) State
compliance examination for the two
years ended June 30, 2022. A separate
digest covers the Board’s financial
audit as of and for the year ended
June 30, 2022 was previously released
on February 16, 2023.  In total, this
report contains 11 findings none of
which were reported within the Board’s
financial audit.

SYNOPSIS

• (22-2)  The Board did not perform
employee performance evaluations in a
timely manner.
• (22-6)  The Board had weaknesses in
performing reconciliations of
appropriations to the Illinois Office
of Comptroller records.

• (22-9) The Board had not implemented
adequate change management controls.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

WEAKNESSES IN PERFORMANCE OF EMPLOYEE
EVALUATIONS

The Capital Development Board (Board)
did not perform employee performance
evaluations in a timely manner.

During our testing of the performance
evaluations of 12 employees, we noted
evaluations were not performed on a
timely basis for nine (75%) employees.
The evaluations were performed between
47 and 385 days late.  (Finding 2,
page 12)  This finding has been
reported since 2006.

We recommended the Board review the
annual evaluation process and ensure
timely completion of annual
performance evaluations for all
employees. We further recommended that
immediate supervisors be held
responsible for completing these on a
timely basis.

The Board accepted the recommendation
and stated it has made process
improvements to ensure timely
completion of annual performance
evaluations for all employees.

WEAKNESSES IN PERFORMING
RECONCILIATIONS

The Board had weaknesses in performing
reconciliations of appropriations to
the Illinois Office of Comptroller
records.

As a result of our testing of
reconciliations performed by the Board
we noted the Board had a total of
$1,425,524 in differences within the
Monthly Appropriation Status Report
(SB01) reconciliation as of September
30, 2022. While the Board was able to
determine the nature of the
differences, the Board did not timely
correct the records for the noted
differences.  (Finding 6, pages 18-19)

We recommended the Board strengthen
internal controls over monthly
reconciliations to ensure they are
performed in accordance with SAMS. In
addition, we recommended the Board
communicate with the Department of
Innovation and Technology to correct
reconciling items which should be
written off in a timely manner.

The Board accepted the recommendation
and stated it has cleared the old
reconciling items.

INADEQUATE CHANGE MANAGEMENT CONTROLS

The Board had not implemented adequate
change management controls.

During our testing, we noted the Board
had not established change control
procedures, including authorization,
testing and documentation
requirements. (Finding 9, page 22)

We recommended the Board work with the
Department of Innovation and
Technology (DoIT) to obtain an
understanding of each party’s
responsibilities. In addition, we
recommended the Board establish change
management procedures to ensure
changes are adequately authorized,
developed, tested and documented.

The Board accepted the recommendation
and stated the Board is working with
DoIT and gaining an understanding of
each party's roles and
responsibilities. In addition, the
Board stated a change management
practice has been adopted.

OTHER FINDINGS

The remaining findings pertain to
Agency Workforce Reports, calculation
of fringe benefits, travel, voucher
processing, filing of required
reports, access control, cybersecurity
programs and practices, and disaster
recovery planning. We will review the
Board’s progress towards the
implementation of our recommendations
in our next State compliance
examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Board
for the two years ended June 30, 2022,
as required by the Illinois State
Auditing Act.  The accountants stated
the Board complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by Sikich LLP.

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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