REPORT DIGEST

STATE EMPLOYEES’ RETIREMENT SYSTEM

COMPLIANCE EXAMINATION
For the Year Ended: June 30, 2015

Release Date:  April 14, 2016

FINDINGS THIS AUDIT:  3

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

FINDINGS LAST AUDIT: 3

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 State Employees’
Retirement System for the year ended June
30, 2015. A separate Financial Audit as of
and for the year ending June 30, 2015, was
previously released on January 12, 2016.
In total, this report contains 3 findings,
2 of which were also reported in the
Financial Audit.

SYNOPSIS

• (15-3) The State Employees’ Retirement
System failed to comply with the Ethics
training provisions of the Illinois
Pension Code.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH ETHICS TRAINING
REQUIREMENTS

The State Employees’ Retirement System of
the State of Illinois (System) did not
comply with the Ethics training provision
of the Illinois Pension Code.

The auditors noted the System did not
track the ethics training completed by its
Board members and did not submit the
required annual certification of
compliance certifying ethics training
completed by its Board members with the
Department of Insurance. (Finding 3, page
15)

We recommended the System develop a
process to track ethics training completed
by its Board members to insure its Board
members complete 8 hours annually and
submit the required annual certification
to the Department of Insurance.

System officials agreed with the auditors
and indicated they are working on
procedures to better track, report and
certify the required ethics training of
each of the members of the Board of
Trustees.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by the System. We
will review the System’s progress towards
the implementation of our recommendations
in our next engagement.

ACCOUNTANT’S OPINION

The auditors conducted a State compliance
examination of the State Employees’
Retirement System for the year ended June
30, 2015, as required by the Illinois
State Auditing Act. The accountants stated
the System complied, in all material
respect, with the requirements described
in the report.

FRANK J. MAUTINO
Auditor General

FJM:JAF

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
examination were BKD LLP.