REPORT DIGEST

OFFICE OF THE ATTORNEY GENERAL

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2020

Release Date:  March 4, 2021

FINDINGS THIS AUDIT:  3

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

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
SYNOPSIS

• (20-1) The Office did not exercise
adequate control over the recording and
reporting of its State property and
equipment.
• (20-2) The Office did not exercise
adequate timekeeping controls over
attendance for employees working
remotely.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER PROPERTY AND
EQUIPMENT

The Office did not exercise adequate
control over the recording and reporting
of its State property and equipment.

Recording and reporting weaknesses were
identified during testing of property and
equipment items as follows:

• The Agency Report of State Property
(C-15) form for the quarter ending
September 30, 2018 overstated additions
by $515, misstated net transfers by
$26,300, and reported deletions as
increase of $11,657 rather than a
decrease.
• The C-15 for the quarters ended June
30, 2019 and June 30, 2020 overstated the
year-end balance by $9,240 and $933,397,
respectively.
• The Schedule of Changes in Property
reported adjustments totaling $48,119 in
Fiscal Year 2019 and $9,915 in Fiscal
Year 2020, representing unknown
reconciling items between the C-15’s and
property records.
• Ten of 40 (25%) additions tested
totaling $171,656 were added to the
property records 5 to 57 days late.
• Six of 40 (15%) items tested, totaling
$47,581, were removed from property
records 9 to 57 days late.
• Four of 40 (10%) items tested, totaling
$51,724, reported acquisition dates on
Surplus Property Delivery Forms which
were 2 to 45 months after the acquisition
dates recorded in property records.
• Three of 40 (8%) items could not be
physically located.
• One of 40 (3%) items was not tagged
until 113 days after receipt.
• The Office failed to adopt a formal
policy for delineating categories of
equipment subject to theft. Any items
with a value of $1,000 or less that could
be considered subject to theft, such as
portable electronic office equipment like
laptops, were not identified, tagged or
tracked. (Finding 1, pages 9-11)

We recommended the Office strengthen
controls and procedures to ensure
accurate C-15 reports, property records
and schedules are prepared, property and
equipment additions are appropriately
tagged and timely recorded in property
records, property items are timely
removed from property records, and
Surplus Property Delivery Forms are
properly completed. We further recommend
the Office adopt a formal policy for
delineating categories of equipment
considered to be subject to theft.
The Office accepted this finding and
stated staff will work to strengthen
internal controls to increase the
accuracy of C-15 reports and property
records, and ensure that all related
equipment transactions occur in a timely
manner. The Office further responded it
will develop and implement a formal
policy for delineating categories of
equipment considered to be subject to
theft.

INADEQUATE CONTROLS OVER REMOTE EMPLOYEE
ATTENDANCE

The Office did not exercise adequate
timekeeping controls over attendance for
employees working remotely.

Employees who worked off-site from March
16, 2020 through June 30, 2020 were
unable to records hours worked in the
system used for employee timekeeping, and
the Office did not require any other
method to keep records of hours worked.
Management suspended timekeeping
requirements for employees working off-
site when the majority of employees
worked remotely during this timeframe.
During Fiscal Year 2020, the Office
employed an average of 767 full-time
employees. (Finding 2, pages 12-13)

We recommended the office ensure
compliance with the State Officials and
Employees Ethics Act by requiring and
providing a mechanism for State employees
working remotely to periodically submit
time sheets documenting the time spent
each day on official State business to
the nearest quarter hour.

The Office accepted the recommendation
and stated corrective action was
implemented effective July 31, 2020.

OTHER FINDING

The remaining finding pertains to
weaknesses in cybersecurity programs and
practices. We will review the Office’s
progress towards the implementation of
our recommendations in our next
compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Office for the two
years ended June 30, 2020, as required by
the Illinois State Auditing Act.  The
accountants qualified their report on
State compliance for Finding 2020-001.
Except for the noncompliance described in
this finding, the accountants stated the
Agency complied, in all material
respects, with the requirements described
in the report.

This compliance examination was conducted
by West & Company, LLC.

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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