REPORT DIGEST

ILLINOIS STATE POLICE, STATEWIDE 9-1-1
FUND AND WIRELESS CARRIER
REIMBURSEMENT FUND

LIMITED SCOPE COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2022

Release Date:  April 13, 2023

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 2

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

The Illinois State Police (Department)
solely maintains the Statewide 9-1-1
Fund and the Department and the
Illinois Commerce Commission
(Commission) each have distinct
responsibilities over transactions
recorded within the Wireless Carrier
Reimbursement Fund (Fund).  Both of
these funds must have a fund-level
examination by the Auditor General
every two years under the Emergency
Telephone System Act (Act) (50 ILCS
750/50).   This digest is limited to
the responsibilities of the Department
pursuant to State law.   A separate
digest concerning the Commission’s
responsibilities was separately
released.

SYNOPSIS

• (22-01) The Department did not
maintain adequate internal controls
over receipts and reconciliations.

• (22-02) The Department’s internal
controls over its voucher processing
function were not operating
effectively during the examination
period.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER RECEIPTS AND
RECONCILATIONS

The Illinois State Police (Department)
did not maintain adequate internal
controls over receipts and
reconciliations.

Controls over cash receipts

During testing, we requested the
Department provide the population of
cash receipts received by the
Department during Fiscal Years 2021
and 2022 for the Statewide 9 1 1 Fund
(Fund 612) and the Wireless Carrier
Reimbursement Fund (Fund 613) in order
to test compliance applicable to those
receipts.  In response to our request,
the Department provided a listing of
cash receipts.  We noted the
Department’s population of cash
receipts did not agree to the
documentation in the Department’s
Revenue Status Report (SB04)
reconciliations for Fiscal Year 2021
or Fiscal Year 2022.

Due to these conditions, we were
unable to conclude the Department’s
population records were sufficiently
precise and detailed under the
Attestation Standards promulgated by
the American Institute of Certified
Public Accountants (AT-C § 205.36) to
test the Department’s compliance
relative to cash receipts.

Additionally, we noted the Department
did not maintain proper segregation of
custody and recordkeeping duties over
receipt collection and processing. One
employee was responsible for:
• Preparing a log of receipts
received;

• Recording receipts in the receipts
ledger; and

• Depositing funds into the State
Treasury.

Controls over reconciliations

During testing of Fiscal Year 2022 and
2021 reconciliations between the
Comptroller’s records and the
Department’s records for Fund 612 and
Fund 613, we noted the following:

• Monthly SB04 reconciliations for
Fiscal Year ended June 30, 2021
contained unexplained reconciliation
discrepancies totaling a net amount of
$276,827 for Fund 612.

• SB04 reconciliations for Fiscal Year
2021 were not reconciled by receipt
account; whereby each Fund was
reconciled in total.

• Monthly Appropriation Status Report
(SB01) and the Object Expense/
Expenditure by Quarter Report (SA02)
final lapse period reconciliations for
the Fiscal Year Ended June 30, 2021
contained an unexplained and
uncorrected reconciling difference
between the Comptroller’s records and
the Department’s records. The total
discrepancy, which was not recorded on
the Department’s records at September
30, 2021, totaled $3,350.

• Five of 29 (17%) monthly SB01 and
SA02 reconciliations were not
performed within 60 days following the
end of the month. The SB01 and SA02
reconciliations were completed 1 to
446 days

• Three of 29 (10%) monthly SB01 and
SA02 reconciliations did not have
documentation retained to indicate the
date prepared and supervisor review of
the reconciliation.

• The June 30, 2022 and 2021 Monthly
Cash Report (SB05) monthly
reconciliation for Fund 612 identified
unknown reconciling differences and
cash receipts not recorded on the
Department’s records totaling $577,905
and $3,102,757, respectively.

• Seven of 24 (29%) SB05
reconciliations were not performed
within 60 days following the end of
the month. The SB05 reconciliations
were completed 1 to 82 days late.

• Four of 24 (17%) SB05
reconciliations were not reviewed by a
supervisor or an independent person.
In addition, one of four (25%) SB05
reconciliations did not indicate when
the reconciliation was prepared.
(Finding 1, pages 12-14)  This finding
was first reported in 2016.

We recommended the Department
establish and document proper
segregation of duties over the
receipts process, establish internal
control to ensure receipts and
expenditures are properly reconciled
and records are timely corrected, and
accurate documentation is maintained
to support receipt activities and
related reviews performed.

Department management concurred with
the finding and stated they had made
progress in the timeliness of the
reconciliations between Fiscal Years
2021 and Fiscal Years 2022; however,
turnover and system errors remained a
barrier.   Additionally, the
Department is developing a plan to
provide additional support for
reconciliations and will continue to
work with the Department of Innovation
and Technology to address errors in
the reports produced by the financial
system.
VOUCHER PROCESSING INTERNAL CONTROL
NOT OPERATING EFFECTIVELY

The Department’s internal controls
over its voucher processing function
were not operating effectively during
the examination period.

Due to our ability to rely upon the
processing integrity of the Enterprise
Resource Planning System (ERP)
operated by the Department of
Innovation and Technology (DoIT), we
were able to limit our voucher testing
at the Department to determine whether
certain key attributes were properly
entered by the Department’s staff into
the ERP.  In order to determine the
operating effectiveness of the
Department’s internal controls related
to voucher processing and subsequent
payment of interest, we selected a
sample of key attributes (attributes)
to determine if the attributes were
properly entered into the State’s ERP
System based on supporting
documentation. The attributes tested
were 1) vendor information, 2)
expenditure amount, 3) object(s) of
expenditure, and 4) the later of the
receipt date of the proper bill or the
receipt date of the goods and/or
services.

Our testing noted nine of 140 (6%)
attributes were not properly entered
into the ERP System.  Therefore, the
Department’s internal controls over
voucher processing were not operating
effectively.

Due to this condition, we qualified
our opinion because we determined the
Department had not complied, in all
material respects, with applicable
laws and regulations, including the
State uniform accounting system, in
its financial and fiscal operations.

Even give the limitations noted above,
we conducted an analysis of the
Department’s expenditures data for
fiscal years 2021 and 2022 to
determine compliance with the Illinois
Administrative Code (74 Ill. Admin.
Code 900.70).  We noted the following
noncompliance:

• The Department did not timely
approve 1,138 of 10,471 (11%) vouchers
processed during the examination
period, totaling $31,599,738. We noted
these late vouchers were approved
between 1 and 322 days late.  (Finding
2, pages 15-16)

We recommended the Department design
and maintain internal controls to
provide assurance its data entry of
key attributes into ERP is complete
and accurate. Further, we recommended
the Department approve proper bills
within 30 days of receipt.

The Department concurred with the
finding and stated the Department is
implementing a process change to
ensure the correct invoice date is
entered.

ACCOUNTANT’S OPINION

The accountants conducted a limited
scope compliance examination of the
Department’s transactions within the
Statewide 9-1-1 fund and the Wireless
Carrier Reimbursement Fund for the two
years ended June 30, 2022, as required
by the Act and the Illinois State
Auditing Act.  The accountants
qualified their report on State
compliance for Findings 2022-001 and
2022-002.  Except for the
noncompliance described in the
findings, the accountants stated the
Department complied, in all material
respects, with the requirements
described in the report.

This limited scope compliance
examination was conducted by West &
Company, LLC.

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

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