REPORT DIGEST ILLINOIS GAMING BOARD COMPLIANCE EXAMINATION FOR THE YEAR ENDED JUNE 30, 2018 Release Date: March 21, 2019 FINDINGS THIS AUDIT: 6 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 4 -- 5 Category 3: 0 -- 1 -- 1 TOTAL: 1 -- 5 -- 6 FINDINGS LAST AUDIT: 7 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 • (2018-001) The Board did not maintain adequate controls over personal services. • (2018-002) The Board did not submit all required Travel Headquarters reports timely to the Legislative Audit Commission. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER PERSONAL SERVICES The Board did not maintain adequate controls over personal services. During testing, we noted three of 25 (12%) employees’ time sheets did not total the required hours or agree to the attendance records for time off. (Finding 1, page 10) This finding has been repeated since 2012. We recommended the Board comply with the Act regarding proper timekeeping. Board personnel agreed with our recommendation and stated Human Resources is working with Board personnel to address this item and in developing a fillable reporting form that will aid in verifying accuracy of employee worktime and timesheets. (For the previous Department response, see Digest Footnote #1.) UNTIMELY FILING OF THE TA-2 REPORTS The Board did not submit all required Travel Headquarters reports timely. During testing, we noted both Travel Headquarters reports (Form TA-2) required to be filed in fiscal year 2017 were filed 16 and 197 days late to the Legislative Audit Commission (Commission). The Board had no employees or officers that were required to be reported on the TA-2 form. (Finding 2, page 11) We recommended the Board timely file its Form TA-2’s. Board personnel agreed with the recommendation and stated the Board will try to ensure the TA-2’s are filed on a timely basis going forward. OTHER FINDINGS The remaining findings pertain to inconsistent provisions of the Riverboat Gambling Act, lack of a formalized change management standard, weaknesses regarding the security and control of confidential information, and a lack of disaster recovery planning and testing to ensure recovery of computer applications and data. We will review the Board’s progress towards the implementation of our recommendations in our next compliance examination. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Board for the two years ended June 30, 2018, 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 compliance examination was conducted by BKD, 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 FJM:jv DIGEST FOOTNOTES #1 - INADEQUATE CONTROLS OVER PERSONAL SERVICES 2016: The Board agrees with the recommendation. It will continue to be the Board’s goal to conduct timely performance evaluations as well as ensure all employees sign-in and/or sign-out during their regular scheduled shift and maintain time sheets which agree to detailed attendance records for time off.