REPORT DIGEST

EXECUTIVE ETHICS COMMISSION

STATE COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2021

Release Date:  April 27, 2023

FINDINGS THIS AUDIT: 6

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

FINDINGS LAST AUDIT: 0

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

SYNOPSIS

• (21-1) The Commission did not
maintain adequate controls over
personal services.
• (21-2) The Commission did not
exercise adequate control over voucher
processing.
• (21-3) The Commission did not
maintain adequate controls over its
equipment and related records.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROL OVER PERSONAL
SERVICES

The Executive Ethics Commission
(Commission) did not maintain adequate
controls over personal services.  Some
of the more significant conditions we
noted are described below:

• During our testing of Employment
Eligibility Verification Forms (Form
I-9) for six employees, we noted the
following:
— Two (33%) employees tested did not
sign Section 1 of the Form I-9 by the
end of their first day of employment.
The employees signed 3 and 31 days
late.
— For one (17%) employee tested,
Section 2 of the Form I-9 was not
completed.
— For one (17%) employee tested,
Section 2 of the Form I-9 was signed
by the Commission 38 days after the
first day of employment.

• Two of 2 (100%) Agency Workforce
Reports were submitted to the Governor
1 and 47 days late.

• The Commission reported amounts on
its Fiscal Year 2019 and Fiscal Year
2020 Agency Workforce Reports which
did not agree to Commission provided
supporting documentation.  We noted
differences ranging from an
overstatement of 3 employees to an
understatement of 6 employees in 32
categories.

• During our testing of 21 personnel
files, we noted the following:
— Three (14%) personnel files selected
for testing did not contain the
employee’s resume, which is utilized
by the Commission as an application
for employment.
— Four (19%) personnel files selected
for testing did not contain
documentation to support the
employee’s current, or ending, gross
pay.
— In addition, we noted many documents
required to perform testing were not
maintained in the employee personnel
files selected for testing, including
18 of 42 (43%) performance evaluations
and 2 of 21 (10%) resumes.  These
documents were later provided to the
auditors and were tested at that time.
(Finding 1, pages 10-13)

We recommended the Commission ensure
the Form I-9 is properly and timely
completed for all newly hired
employees and ensure its Agency
Workforce Reports are accurately and
filed timely.  We also recommended the
Commission ensure personnel files are
complete and updated routinely,
strengthen its review of employees’
accumulated leave time, and ensure
performance evaluations are timely
performed and appropriately documented
in the personnel file.  Further, we
recommended the Commission ensure all
employees required to file Statements
of Economic Interests and/or complete
procurement training do so.

Commission officials accepted the
recommendations and indicated action
has been taken to implement the
recommendations.

INADEQUATE CONTROLS OVER VOUCHER
PROCESSING

The Commission did not exercise
adequate control over voucher
processing.  During testing, we noted
the following:

• Twenty-three of 113 (20%) general,
lapse period, and travel vouchers
tested, totaling $1,894,896, were
approved for payment 1 to 180 days
late.

• Six of 60 (10%) general vouchers
tested, totaling $6,649, were not
charged to the correct fiscal year.

• For 4 of 60 (7%) general vouchers
tested, totaling $652,897, interest
totaling $6,102 was accrued and owed
to the vendors, but the Commission
either did not pay interest to the
vendors or did not pay the correct
amount of interest to the vendors.  In
total, the vendors were underpaid
$6,102 in interest penalties.

• A new furniture affidavit was not
filed for 1 of 60 (2%) general
vouchers tested, totaling $834, where
office furniture was purchased.

• The voucher amounts for 2 of 77 (3%)
general and lapse period vouchers
tested, totaling $9,372, did not
mathematically trace to the support
provided by the Commission.

• Four of 53 (8%) lapse period and
travel vouchers tested, totaling
$2,071, were not submitted to the
Commission within 60 days of the final
day of travel.  The vouchers were
submitted to the Commission 23 to 57
days late.  (Finding 2, pages 14-16)

We recommended the Commission ensure
all vouchers are timely approved for
payment and charged to the correct
fiscal year.  We also recommended the
Commission ensure all voucher amounts
agree to supporting documentation and
ensure any required interest is paid
timely.  We further recommended the
Commission ensure new furniture
affidavits are filed when required.
Lastly, we recommended the Commission
remind travelers of the need to submit
travel vouchers timely.

Commission officials accepted the
recommendations and indicated
improvements to these processes are
being implemented.

INADEQUATE CONTROLS OVER EQUIPMENT AND
RELATED RECORDS

The Commission did not maintain
adequate controls over its equipment
and related records.  We noted the
following:

• During backwards testing, 19 of 40
(48%) items tested, totaling $12,017,
were physically located in a different
location than reported on the
Commission’s property listing.

• During forwards testing, 3 of 40
(8%) items tested, totaling $7,077,
were physically located in a different
location than reported on the
Commission’s property listing.

• During backwards testing, 1 of 40
(3%) items tested was not reported on
the Commission’s annual inventory
certification submitted to the
Department of Central Management
Services (DCMS), nor was the item
located on the Commission’s property
listing.

• The Commission did not have a
written policy to clearly delineate
the categories of equipment considered
to be subject to theft.

• During testing of information
technology (IT) related equipment
items, we were unable to determine if
11 of 11 (100%) IT equipment items
tested were disposed of in accordance
with the Data Security on State
Computers Act due to a lack of
documentation substantiating the hard
drives had been erased, wiped,
sanitized, or destroyed.  (Finding 3,
pages 17-18)

We recommended the Commission improve
its controls over equipment to ensure
its related property records are
accurate and up to date.  In addition,
we recommended the Commission adopt a
written policy delineating categories
of equipment considered to be subject
to theft.  Lastly, we recommended the
Commission retain sufficient records
to substantiate proper disposal of
electronic data processing equipment
items.

Commission officials accepted our
recommendations.

OTHER FINDINGS

The remaining findings pertain to
inadequate control over
reconciliations, failure to implement
all provisions of the Identity
Protection Act, and the lack of an
adequate internal control review over
service providers.  We will review the
Commission’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
Commission for the two years ended
June 30, 2021, as required by the
Illinois State Auditing Act.  The
accountants qualified their report on
State compliance for Finding 2021-001.
Except for the noncompliance described
in this finding, the accountants
stated the Commission complied, in all
material respects, with the
requirements described in the report.

This State 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