REPORT DIGEST

ROSELAND COMMUNITY MEDICAL DISTRICT
COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2016

Release Date:  November 27, 2018

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: *

* This is the first examination of the
Roseland Community Medical District
Commission. As such, comparative data for
prior periods is not available.

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

Because of the significance and
pervasiveness of the matters described
within the finding included within the
report, we expressed an adverse opinion on
the Commission’s compliance with the
assertions which comprise a State
compliance examination.  The Codification
of Statements on Standards for Attestation
Engagements (AT-C § 205.72) states a
practitioner “should express an adverse
opinion when the practitioner, having
obtained sufficient appropriate evidence,
concludes that misstatements, individually
or in the aggregate, are both material and
pervasive to the subject matter.”

SYNOPSIS

• (16-01) The Commission failed to
establish a control environment.

OTHER MATTER

As disclosed by management to us on page 15
of the report, due to the nature of the
Commission’s operations, the Commission’s
continuance is dependent on the continuance
of the Roseland Community Hospital
(Hospital).  In recent years, the Hospital
has experienced financial hardship.  If the
Hospital ceases operations, the Commission
will, consequently, cease operations as
well.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ESTABLISH A CONTROL ENVIRONMENT

The Commission failed to establish a
control environment.

During testing, we noted the following:

Noncompliance with the Roseland Community
Medical District Act

• The Commission did not include the
Secretary of Human Services or their
designee.

• Nine of nine (100%) appointed
Commissioners failed to take an oath of
office upon appointment to the Commission.

• The Commission did not submit a biennial
report to the General Assembly.

• The Commission did not prepare and
approve a comprehensive master plan during
Calendar Year 2015 and Calendar Year 2016.

Economic Interest Statements

• The Commission did not submit a listing
of Commissioners required to file a
statement of economic interest to the
Secretary of State and Cook County Clerk by
February 1, 2015, and February 1, 2016.

• Nine of nine (100%) appointed
Commissioners failed to file a statement of
economic interest with the Secretary of
State or Cook County Clerk during Calendar
Year 2015 or Calendar Year 2016.

Receipts

The Commission was unable to provide proper
supporting documentation for two of two
(100%) receipts, totaling $300. Therefore,
we were unable to determine whether the
receipts were for the correct amount,
deposited timely, properly approved,
mathematically correct, and accurately
recorded. (Finding 1, pages 10-12)

We recommended the Commission take action
to establish a control environment to
provide assurance it complies with the Act,
the Illinois Governmental Ethics Act, the
State Records Act, and the Fiscal Control
and Internal Auditing Act.  Further, we
recommended the Commission ensure its
accounting records are prepared and
maintained to adequately support its
transactions and reporting.

Commission officials agreed with the
recommendation.


ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Commission for the two
years ended December 31, 2016, as required
by the Illinois State Auditing Act.
Because of the effect of the noncompliance
described in Finding 2016-001, the
accountants stated the Commission did not
comply with the requirements described in
the report.

This compliance examination was conducted
by the Office of the Auditor General’s
staff.

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:APA