REPORT DIGEST

OFFICE OF THE SECRETARY OF STATE

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  May 16, 2019

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 1

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

• (18-1) The Office’s year-end process to
identify the balance of cash on hand and
cash in transit at June 30 contained
inaccuracies.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WEAKNESS IN DETERMINATION OF CASH ON HAND
AND CASH IN TRANSIT AMOUNTS REPORTED IN THE
FINANCIAL STATEMENTS

The Office’s year-end process to identify
the balance of cash on hand and cash in
transit at June 30 contained inaccuracies.
The issues associated with the
inaccuracies, if not detected and
corrected, could materially misstate the
Office’s financial statements and impact
the Statewide financial statements prepared
by the Office of the Comptroller.

During the testing over the cash on hand
and the cash in transit balances reported
in the General Revenue Fund (Fund 0001),
the Road Fund (0011), and the State
Construction Account Fund (Fund 0902)
auditors noted the following errors in
calculation:
• The query used to determine the June
receipts received by the Office, but not
yet deposited into the Illinois State
Treasurer’s clearing accounts at June 30,
2018, did not include June receipts that
were still being reconciled to support
records on the date the query was run. This
omission resulted in an additional $9.5
million in receipts for the Road Fund and
$9 thousand in receipts for the General
Revenue Fund.
• The spreadsheet used to calculate the
June receipts held in the Treasurer’s
clearing accounts, but not yet remitted to
the Office of the Comptroller, improperly
included fiscal year 2017 data in the
calculation. This error resulted in an
overstatement of receipts of $2.4 million
in the General Revenue Fund and an
understatement of receipts of $3 million in
the Road Fund.
• The amount underfunded to the State
Construction Account Fund as of June 30,
2018 was not considered in the cash in
transit balance allocated at the fiscal
year end. The related receipts were
received by the Office before June 30, 2018
but were not paid to the State Construction
Account Fund until August 2018. Due to the
cash in transit process in which receipts
not allocated to specific funds are
allocated to the Road Fund, the receipts
were held in the Road Fund at June 30,
2018. This error resulted in an
overstatement of receipts of $8.7 million
in the Road Fund and an understatement of
receipts of $8.7 million in the State
Construction Account Fund.

Audit adjustments to the Office’s financial
statements were made for the Road Fund and
State Construction Fund. The errors
identified in the General Revenue Fund were
not considered material by the Office and
were not corrected as of June 30, 2018.
(Finding 1, pages 70-72).

We recommended the Office implement a
process to review the calculation over the
cash on hand and cash in transit process to
determine that the calculation includes the
correct fiscal year information and
considers all in transit activity as of
June 30th.

Office officials agreed with the
recommendation and stated it plans to
review all of the fees it collects on
behalf of the State of Illinois and will
implement a process to ensure calculations
over the cash on hand and cash in transit
include the correct fiscal year
information.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Agency as of and for the
year ended June 30, 2018 are fairly stated
in all material respects.

This financial audit was conducted by
Sikich, LLP.

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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