REPORT DIGEST

ILLINOIS HOUSING DEVELOPMENT AUTHORITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2022

Release Date:  May 18, 2023

FINDINGS THIS AUDIT: 11

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 1 -- 1
Category 2:  2 -- 8 -- 10
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 8 -- 11

FINDINGS LAST AUDIT: 15

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 our Compliance
Examination of the Illinois Housing
Development Authority (Authority) for
the year ended June 30, 2022.  A
separate Financial Audit as of and for
the year ended June 30, 2022, was
previously released on December 21,
2022.  A separate Single Audit for the
year ended June 30, 2022, was
previously released on March 30, 2023.
In total, this report contains 11
findings, two of which were reported
in the Financial Audit and two of
which were reported in the Single
Audit.

SYNOPSIS

• (22-7) The Authority has not
established adequate controls over the
appropriate completion of I-9 Forms
for employees hired by the Authority.
• (22-8) The Authority did not approve
payroll reports timely.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER I-9 FORMS

The Authority has not established
adequate controls over the appropriate
completion of I-9 Forms for employees
hired by the Authority.

During our review of 40 employees, we
noted the following:

• Five employees (13%) did not fully
complete section 1 of the I-9 Form as
there was no indication as to whether
the employee used a preparer,
translator, or other individual to
assist in completing Form I-9 on or
before their respective hire date.

• Three employees (8%) failed to date
section 1 of the I-9 Form by their
respective hire date.

• Six employees (15%) dated and
completed the I-9 Form prior to their
hire date. (Finding 7, page 22)

We recommended the Authority enhance
their controls over the process for
preparing and reviewing I-9 forms to
ensure compliance with U.S. Citizen
and Immigration Services requirements.

Authority officials agreed with the
recommendation.

INADEQUATE CONTROLS OVER TIME
REPORTING

The Authority did not approve payroll
reports timely.

During our testwork of 40 Weekly
Attendance Reports prepared during the
fiscal year ended June 30, 2022, we
noted the following:

• Twenty-one (53%) reports were not
approved by the designated Department
Director within two weeks of the
related pay period end date.
Specifically, we noted the review
timeframe ranged from 1 to 373 days
subsequent to the pay period end date.

• Twelve (30%) reports were not
approved by the designated Department
Timekeeper within two weeks of the
related pay period end date.
Specifically, we noted the review
timeframe ranged from 1 to 373 days
subsequent to the pay period. (Finding
8, page 23)

We recommended the Authority enforce
existing policies and procedures to
ensure payroll is approved timely.

Authority officials agreed with the
recommendation.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by Authority
personnel.  We will review the
Authority’s progress toward the
implementation of our recommendations
in our next examination.

AUDITOR’S OPINIONS

The auditors stated the financial
statements of the Authority as of and
for the year ended June 30, 2022, are
fairly stated in all material
respects.

The auditors also conducted a Single
Audit of the Authority as required by
the Uniform Guidance.  The auditors
stated the Authority complied, in all
material respects, with the types of
compliance requirements that could
have a direct and material effect on
the Authority’s major programs for the
year ended June 30, 2022.

ACCOUNTANT’S OPINION

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

This State Compliance Examination was
conducted by CliftonLarsonAllen 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:TLK