REPORT DIGEST

COMMISSION ON GOVERNMENT FORECASTING AND
ACCOUNTABILITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2019

Release Date:  April 22, 2020

FINDINGS THIS AUDIT:  2

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

FINDINGS LAST AUDIT: 0

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

• (19-01) The Commission did not maintain
adequate controls over its property listing
and related reporting.
• (19-02) The Commission did not have an
adequate segregation of duties over its
accounting and recordkeeping functions for
receipts.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER STATE PROPERTY

The Commission did not maintain adequate
controls over its property listing and related
reporting. During testing, we noted the
following:

• The Commission failed to remove one item,
totaling $113, from its property listing. The
item was picked up by the Department of
Central Management Services (CMS) on December
5, 2018, but was not removed from the
Commission’s property listing as of June 30,
2019.

• Five of 6 (83%) deletions tested, totaling
$2,890, were not removed from the property
listing timely. The assets were picked up by
CMS on December 5, 2018, but were not removed
from the Commission’s property listing until
June 13, 2019.

As a result, the Commission’s Form C-15
reports filed for the third and fourth
quarters of Fiscal Year 2019 were overstated
by $3,003 and $113, respectively.  (Finding 1,
pages 10-11)

We recommended the Commission timely update
its property records after changes occur to
ensure accurate property reporting.

Commission officials accepted our
recommendation, noting because the Commission
had recently relocated and acquired the former
LRU via an agency merger (per PA 100-1148),
the Commission was delayed in performing such
deletions while determining how to best merge
the property control systems of two agencies.

INADEQUATE SEGREGATION OF DUTIES

The Commission did not have an adequate
segregation of duties over its accounting and
recordkeeping functions for receipts.

During testing of receipts, we noted the
Commission’s Fiscal Officer had the authority
to perform all parts of the transaction cycle,
including:

• Authorization by reviewing and approving
transactions, including both depositing funds
into the State Treasury’s clearing accounts
and preparing Receipt Deposit Transmittals or
Expenditure Adjustment Transmittals;
• Custody by handling and depositing physical
checks and money orders and maintaining
electronic and physical records;
• Recordkeeping by preparing entries and
maintaining the Commission’s internal
accounting records; and,
• Reconciliation by preparing reconciliations
to the State Comptroller’s records to verify
each transaction’s validity, proper
authorization, and entry into the Commission’s
accounting records.

We identified the Executive Director and/or
Deputy Director’s review of transactions and
reconciliations as compensating controls.
However, the authority or ability for one
person to perform all functions represents a
significant control weakness.

The Commission processed receipts totaling
$5,210 during Fiscal Year 2019 and no receipts
during Fiscal Year 2018.  (Finding 2, pages
12-13)

We recommended the Commission establish a
proper segregation of duties over its
receipts.

Commission officials accepted our
recommendation and described corrective action
taken to achieve a proper segregation of
duties.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Commission for the two
years ended June 30, 2019, as required by the
Illinois State Auditing Act.  The accountants
stated the Commission complied, in all
material respects, 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

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