REPORT DIGEST ILLINOIS STATE BOARD OF INVESTMENT Financial Audit For the Year Ended June 30, 2015 Release Date: December 23, 2015 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 0 -- 1 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 0 -- 1 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 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 INTRODUCTION This digest covers the Illinois State Board of Investment’s (Board) financial audit as of and for the year ended June 30, 2015. The Illinois State Board of Investment’s compliance examination covering the year ended June 30, 2015 will be issued at a later date. SYNOPSIS • (15-1) The Board recorded a fiscal year 2016 distribution of $1,200,000 in fiscal year 2015. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER FINANCIAL CLOSE AND REPORTING The Illinois State Board of Investment (Board) recorded a fiscal year 2016 distribution of $1,200,000 in fiscal year 2015. During our testing over distributions, we noted that a distribution to the Illinois Power Agency in the amount of $1,200,000 was recorded in fiscal year 2015 in error. The funds were not distributed to the Illinois Power Agency until fiscal year 2016. An audit adjustment of $1,200,000 was recorded by the Board to correct the error. Failure to record transactions in the proper period could result in inaccurate financial statements. (Finding 1, page 26) We recommended the Board review their procedures for monitoring significant transactions occurring near the end of their fiscal year in order to help identify and record transactions in the proper fiscal year. Board officials agreed with the finding. AUDITOR’S OPINION Our auditors state the financial statements of the Illinois State Board of Investment as of and for the year ended June 30, 2015 are fairly presented in all material respects. WILLIAM G. HOLLAND Auditor General WGH:TLK SPECIAL ASSISTANT AUDITORS Our Special Assistant Auditors for this audit were RSM US LLP.