REPORT DIGEST

STATE POLICE MERIT BOARD

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2016

Release Date:  February 2, 2017

FINDINGS THIS AUDIT:  2

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

FINDINGS LAST AUDIT: 0

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

• (16-01) The State Police Merit Board did
not maintain adequate segregation of
duties in the areas of payroll,
expenditure control, and State property.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

The State Police Merit Board (Board) did
not maintain adequate segregation of
duties in the areas of payroll,
expenditure control, and State property.
We noted the following:

• One employee had the authority to
prepare and approve vouchers, maintain
accounting records, enter transactions
into the accounting system, and perform
monthly reconciliations. Additionally, an
information technology employee had the
authority to approve vouchers.

• One employee had the authority to
prepare payroll, make adjustments to
payroll, approve payroll, and distribute
payroll checks.

• During Fiscal Year 2015 only, one
employee had the authority to maintain
property control records, tag all
inventory, and perform quarterly and
annual physical property inventory.

• As a compensating control for a lack of
segregation of duties upper management had
been charged with review and approval of
all invoices; however, documentation of
that review was not maintained.

• Documentation for Fee Imposition
Reports, Travel Headquarters Reports, and
Agency Reports of State Property did not
contain evidence that the reports had been
reviewed or approved by a person
independent of preparation.

We recommended the Board allocate
sufficient personnel in order to maintain
effective internal control over the
authorization, custody and record keeping
over payroll, expenditures and property.
We also recommended documentation be
maintained to support the controls are
functioning as designed.

Board management agreed that segregation
is an issue with a staff this small and
stated they have already implemented
corrective action.

OTHER FINDINGS

The remaining finding pertains to
inadequate controls over Board records and
is reportedly being given attention by
Board personnel.  Auditors will follow up
on the Board’s progress towards the
implementation of our recommendation in
the next engagement.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Board for the two years
ended June 30, 2016 as required by the
Illinois State Auditing Act. The
accountants qualified their report on
State Compliance for finding 2016-001.
Except for the noncompliance described in
the finding, the accountants stated the
Board complied, in all material respects,
with the requirements described in the
report

FRANK J. MAUTINO
Auditor General

FJM:hww

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
examination were West & Company, LLC.