REPORT DIGEST ILLINOIS COMMERCE COMMISSION COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2011 Release Date: August 9, 2012 Summary of Findings: Total this audit: 7 Total last audit: 3 Repeated from last audit: 2 State of Illinois, Office of the Auditor General WILLIAM G. HOLLAND, 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 • The Commission’s practice of posting personal information from consumers on its website led to the exposure of such information. • The Commission did not exercise adequate controls over employee time to ensure accuracy of termination pay and time records and to ensure employees worked scheduled hours. • The Commission reported inaccurate federal grant award information on a financial reporting form submitted to the Illinois Office of the State Comptroller. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS PERSONAL CONFIDENTIAL INFORMATION POSTED ON WEBSITE The Commission’s e-Docket system contained personal information from consumers relating to formal complaints with regulated utilities and other entities. We accessed the e-Docket system on the World Wide Web and identified a significant amount of unprotected personal confidential information. What we found included name and address, social security number, driver’s license number, credit history and medical information. After notification, the Commission developed a comprehensive action plan to minimize the exposure risk of e-Docket privacy information in October 2011. In addition, in November 2011 the Commission notified individuals whose confidential personal information had been posted on the e-Docket system. (Finding 11-1, pages 11-13) We recommended the Commission continue implementing its plan to ensure personal confidential information submitted by consumers is not posted on the World Wide Web. Commission officials responded they have implemented numerous controls to protect privacy information. NEED TO IMPROVE CONTROLS OVER EMPLOYEE TIME The Commission did not exercise adequate controls over employee time. We noted the following: • Two of 8 (25%) former employees tested received final pay in excess of amounts earned before separation from the Commission. The cumulative overpayment totaled $2,321. • Three of 40 (8%) employees tested did not work their scheduled work hours or submit required documentation for the deviations to supervisors and timekeepers. • Leave records for 4 of 40 (10%) employees tested differed from timekeeping records. (Finding 2, pages 14-15) We recommended staff verify accuracy of final compensation pay and seek reimbursement of overpayments. In addition, we recommended the Commission ensure employees work scheduled hours and follow up on discrepancies. Finally, we recommended staff verify employee leave time agrees with timekeeping records. Commission officials stated they are working to collect overpayments and will continue corrective actions to address the exceptions noted. INACCURATE FEDERAL AWARD INFORMATION PROVIDED ON GRANT ANALYSIS The Commission reported inaccurate federal grant award information on a financial reporting form submitted to the Illinois Office of the State Comptroller for fiscal year 2011. We noted: • Four of 8 (50%) grant agreements, with expenditures totaling approximately $544,000, were reported under incorrect federal grant program (CFDA) numbers. • Receipts received for one grant were overstated by $108,627. (Finding 3, pages 16-17) We recommended the Commission strengthen its controls over financial reporting to ensure all required information is properly reported. Commission officials stated internal controls will be strengthened through a formal review process. OTHER FINDINGS The remaining findings are reportedly being given attention by the Commission. We will review the Commission’s progress toward implementing all recommendations in our next examination. AUDITORS’ OPINION We conducted a compliance examination of the Illinois Commerce Commission as required by the Illinois State Auditing Act. The Commission has no funds that require an audit leading to an opinion of financial statements WILLIAM G. HOLLAND Auditor General WGH:LKW:rt AUDITORS ASSIGNED The examination was performed by the Office of the Auditor General’s staff.