REPORT DIGEST

ILLINOIS ARTS COUNCIL

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  March 31, 2026

FINDINGS THIS AUDIT: 10

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  2 -- 2 -- 4
Category 2:  2 -- 4 -- 6
Category 3:  0 -- 0 -- 0
TOTAL:  4 -- 6 – 10

FINDINGS LAST AUDIT: 7

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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

• (25-01) The Illinois Arts Council’s
(Council) internal controls over its
voucher processing function were not
operating effectively during the
examination period.

• (25-02) The Council did not perform
monthly reconciliations.

• (25-05) The Council failed to adopt
formal rules, including rules related to
grant procedures.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

VOUCHER PROCESSING INTERNAL CONTROLS NOT
OPERATING EFFECTIVELY

The Council’s internal controls over its
voucher processing function were not
operating effectively during the
examination period.

Due to our ability to rely upon the
processing integrity of the Enterprise
Resource Planning (ERP) System operated by
the Department of Innovation and
Technology, we were able to limit our
voucher testing at the Council to determine
whether certain key attributes were
properly entered by the Council’s staff
into the ERP.

Our testing noted 21 of 140 (15%)
attributes were not properly entered into
the ERP System. Therefore, the Council’s
internal controls over voucher processing
were not operating effectively.

Due to this condition, we qualified our
opinion because we determined the Council
had not complied, in all material respects,
with applicable laws and regulations,
including the State uniform accounting
system, in its financial and fiscal
operations.

Even given the limitations noted above, we
conducted an analysis of the Council’s
expenditures data for fiscal years 2024 and
2025 and noted the following:

• The Council did not timely approve 463 of
3,339 (14%) vouchers processed during the
examination period, totaling $12,333,228.
We noted these vouchers were approved
between 31 and 150 days after receipt of a
proper bill or other obligating document.

• Three of 35 (9%) vouchers tested,
totaling $11,872, did not have adequate
supporting documentation such as invoices
and billings. (Finding 1, pages 11-12)

We recommended the Council design and
maintain internal controls to provide
assurance its data entry of key attributes
into ERP is complete and accurate. Further,
we recommended the Council timely approve
proper bills and obligations due and
maintain adequate supporting documentation
for vouchers processed.

The Council accepted the finding and
indicated it has reviewed and established
procedures to ensure voucher processing
functions are in place.

MONTHLY RECONCILIATIONS NOT PERFORMED

The Council did not perform monthly
reconciliations.

During our testing of Fiscal Year 2024 and
2025 reconciliations, we noted the Council
did not perform:
• Twenty-three of 28 (82%) monthly
reconciliations with the Comptroller’s
Monthly Appropriations Status Report
(SB01).
• Monthly reconciliations with the
Comptroller’s Monthly Revenue Status Report
(SB04).
• Monthly reconciliations with the
Comptroller’s Monthly Cash Report (SB05).
The Illinois Arts Council Federal Grant
Fund (Fund 657) had balances reported by
the Comptroller of $28,227 and $37,361 as
of June 30, 2024, and June 30, 2025,
respectively.
• Twenty-five of 28 (89%) monthly
reconciliations with the Comptroller’s
Monthly Agency Contract Report (SC14) or
Obligation Activity Report (SC15). (Finding
2, page 13-14)  This finding has been
reported since 2019.

We recommended the Council reconcile its
records to the Comptroller’s reports in
accordance with the SAMS.

The Council accepted the finding.

FAILURE TO ADOPT FORMAL RULES FOR THE
AGENCY AND GRANT PROCEDURES

The Council failed to adopt formal rules,
including rules relating to grant
procedures. The Council’s grant
expenditures were $27,681,913 and
$23,504,110 for Fiscal Years 2024 and 2025,
respectively. (Finding 5, page 19)   This
finding has been reported since 2007.

We recommended the Council complete
drafting organizational rules and grant
procedures, and work with the Joint
Committee on Administrative Rules for
assistance with the formal adoption
process.

The Council accepted the finding.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by Council personnel.  We
will review the Council’s progress towards
the implementation of our recommendations
in our next State compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Council for
the two years ended June 30, 2025, as
required by the Illinois State Auditing
Act.  The accountants qualified their
report on State compliance for Findings
2025-001 through 2025-004.  Except for the
noncompliance described in these findings,
the accountants stated the Council
complied, in all material respects, with
the requirements described in the report.

This State compliance examination was
conducted by West & Co., LLC.

COURTNEY DZIERWA
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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