REPORT DIGEST

OFFICE OF THE TREASURER –
THE ILLINOIS FUNDS

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  April 13, 2023

FINDINGS THIS AUDIT: 2

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

• (22-01) The Office had inadequate
internal controls over the Office’s
Illinois Funds Program financial
statement preparation and review
process, specifically the
determination of proper financial
reporting for the external portion of
The Illinois Funds program.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS RELATED
TO REVIEW OF FINANCIAL STATEMENTS

The Office had inadequate internal
controls over the Office’s Illinois
Funds Program financial statement
preparation and review process,
specifically the determination of
proper financial reporting for the
external portion of The Illinois Funds
program.

To determine the external portion of
the fund in accordance with
Governmental Accounting Standards
Board (GASB) Statement No. 84,
Fiduciary Activities, the Office
identified internal and external
participant account values. During our
review of the financial statements we
noted the Office incorrectly included
one internal account, totaling
$3,021,410, and excluded one external
account, totaling $46,077,950, within
their calculation of the external
portion, for a net error totaling
$43,056,540. This error led to the
misstatement of all accounts on the
Statements of Fiduciary Net Position
and the Statements of Changes in
Fiduciary Net Position and resulted in
various errors in the Notes to the
Financial Statements and Supplementary
Information.  As of June 30, 2022, the
Net Position Held in Trust for Pool
Participants, including the internal
and external participants, was
$16,077,483,986. (Finding 1, pages
64-65)

The Office corrected the errors noted
above.

We recommended the Office improve
controls over the financial reporting
process of the Illinois Funds Program,
specifically:
• Verify accuracy of all information
reported.
• Verify external account value agrees
to underlying support.
• Verify amounts reported agree
between statements, note disclosures,
and supplementary information.

The Office accepted the
recommendations.

OTHER FINDING

The remaining finding pertains to
internal controls over external
service providers.  We will review the
Office’s progress towards the
implementation of our recommendations
in our next financial audit.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Program as of and
for the years ended June 30, 2022, and
June 30, 2021, are fairly stated in
all material respects.

This financial audit was conducted by
Crowe 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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