REPORT DIGEST ILLINOIS COUNCIL ON DEVELOPMENTAL DISABILITIES COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2017 Release Date: December 12, 2018 FINDINGS THIS AUDIT: 0 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 1 -- 0 -- 1 Category 2: 1 -- 0 -- 1 Category 3: 0 -- 1 -- 1 TOTAL: 2 -- 1 -- 3 FINDINGS LAST AUDIT: 1 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 • (17-01) The Council did not maintain adequate documentation and control over its property. • (17-03) The Council has several members serving on expired terms. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROL OVER STATE PROPERTY The Illinois Council on Developmental Disabilities (Council) did not maintain adequate documentation and control over its property during the examination period. During testing, we noted the Council did not maintain detailed supporting documentation of property acquisitions during the examination period. Due to these conditions, we were unable to conclude whether the Council’s population records were sufficiently precise and detailed under the Attestation Standards promulgated by the American Institute of Certified Public Accountants (AT-C § 205.35) to test the Council’s acquisitions of equipment and property. Even given the population limitations noted above which hindered our ability to conclude whether selected samples were representative of the population as a whole, we selected a sample from the listing provided by the Council and performed testing of additions to the Council’s property during the period. • The Council’s records for nine of ten (90%) acquisitions tested, totaling $3,058, did not include a received date. As a result, we were unable to determine if the equipment was added to the property records timely. • The Council received 15 electronic equipment items, totaling $4,696, to use from the Department of Innovation and Technology (DoIT). The equipment should have been labeled the property of DoIT since DoIT was retaining ownership of the equipment; however, Council personnel attached Council equipment tags and added the items to the Council’s property listing. • Six of 80 (8%) property items selected from the Council’s property listing or selected from property located at the Council, totaling $2,725, were found in a different location than indicated on the Council’s property listing. • Four of 80 (5%) property items selected from the Council’s property listing or selected from items located at the Council, totaling $951, were deemed obsolete. However, these items remained on Council property records and the Council had not reported these items to the Department of Central Management Services (CMS) for possible disposal through the surplus process. • While inquiring about the obsolete equipment above, we found the Council had a large amount of additional property awaiting surplus by CMS, which includes chairs, desks, shelves, and file cabinets. The items remained on the property listing and were not tracked while awaiting surplus. (Finding 1, pages 8-9) We recommended the Council strengthen its internal controls over recording and reporting its State property and equipment transactions. Further, the Council should implement a corrective action plan to (1) survey its inventory and report transferable equipment to CMS and (2) complete a full inventory to identify and correct its property and equipment errors. Council officials agreed with our recommendation. EXPIRED COUNCIL MEMBER TERMS The Council has several members serving on expired terms. During testing, we noted 16 of 19 (84%) members appointed by the Governor were serving under expired terms with 10 of these members already having served two successive terms on the Council. The original appointments of those 10 members were made between August 2004 and September 2010. (Finding 3, page 12) We recommended the Council continue to work with the Governor’s Office to ensure Council member vacancies are filled and reappointments or replacements of members with expired terms are made in a timely manner. Council officials agreed with our recommendation. OTHER FINDING The remaining finding pertained to inadequate control over reconciliations. We will review the Council’s progress towards the implementation of our recommendations in our next compliance examination. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Council for the two years ended June 30, 2017, as required by the Illinois State Auditing Act. The accountants qualified their report on State compliance for Finding 2017-001. Except for the noncompliance described in this finding, the accountants stated the Council complied, in all material respects, 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 FJM:SDW