REPORT DIGEST

ILLINOIS DEPARTMENT OF VETERANS’
AFFAIRS

STATE COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2022

Release Date:  April 13, 2023

FINDINGS THIS AUDIT: 32

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 1 -- 2
Category 2:  11 -- 19 -- 30
Category 3:  0 -- 0 -- 0
TOTAL:  12 -- 20 -- 32

FINDINGS LAST AUDIT: 25

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

• (22-2) The Department did not
exercise adequate controls over its
voucher processing during the
examination period.
• (22-8) The Department failed to
complete annual performance
evaluations timely.
• (22-15) The Department did not
exercise adequate control over the
recording, reporting, and inventorying
of State Property.
• (22-22) The Department did not
provide adequate planning for the
recovery of its applications and data.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

VOUCHER PROCESSING WEAKNESSES

The Illinois Department of Veterans’
Affairs (Department) did not exercise
adequate controls over its voucher
processing during the examination
period.

We conducted an analysis of the
Department’s expenditure data for
Fiscal Year 2021 and Fiscal Year 2022
and noted the following:

• The Department did not timely
approve 3,004 of 15,454 (19%) vouchers
processed during Fiscal Year 2021.
The vouchers were submitted to the
Office of Comptroller (Comptroller)
between 31 and 422 days late.

• The Department did not timely
approve 1,773 of 13,143 (13%) vouchers
processed during Fiscal Year 2022.
The vouchers were submitted to the
Comptroller between 31 and 366 days
late. (Finding 2, pages 17-18)

We recommended the Department process
proper bills within 30 days of
receipt.

The Department accepted our
recommendation and stated it would
take the necessary steps to comply
with statutory requirements.

EMPLOYEE PERFORMANCE EVALUATIONS NOT
PERFORMED TIMELY

The Department failed to complete
annual performance evaluations timely.

During our testing of 40 employee
personnel files containing 70
evaluations, we noted the following:

• Evaluations were not performed on a
timely basis for 17 of 70 (24%)
evaluations tested.  The evaluations
were performed from 10 to 141 days
late.

• The evaluation was not signed by the
employee for five of 70 (7%)
evaluations tested.

• The Department could not provide
evidence that it had completed
evaluations for four of 40 (10%)
employees tested.

• The Department did not complete an
evaluation for two of 40 (5%)
employees during the examination
period.

• The evaluation was improperly dated
for one of 70 (1%) evaluations tested.
The evaluation period ended June 30,
2022; however, the evaluation was
dated by the supervisor June 14, 2023.
(Finding 8, pages 28-29) This finding
has been reported since 2008.

We recommended the Department take
appropriate measures to ensure
performance evaluations are conducted
timely.

The Department accepted our
recommendation and stated it put
measures in place to strengthen
controls and tracking related to the
timely completion of employee
performance evaluations to ensure
compliance.

INADEQUATE CONTROLS OVER THE PURCHASE,
RECORDING, AND REPORTING OF STATE
PROPERTY

The Department did not exercise
adequate control over the recording,
reporting, and inventorying of State
property.

A few issues we noted during our
testing of State property follow:

• During testing of additions to the
Department’s property records, we
noted that five of 40 (13%) assets
tested totaling $5,686 were not added
timely to property records, ranging
from 145 to 1,097 days late.

• In its Calendar Year 2021 (Fiscal
Year 2020) Annual Inventory Report
submitted to the Department of Central
Management Services (CMS), the
Department reported it was unable to
locate 159 items totaling $91,368,
which represents 2.1% of the
Department’s total property.  One of
these items was information technology
(IT) related equipment that could
potentially store confidential
information.

• In its Calendar Year 2022 (Fiscal
Year 2021) Annual Inventory Report
submitted to CMS, the Department
reported it was unable to locate 222
items totaling $192,695.  This
represents 2.54% of the Department’s
total property.  Ten of these items
were IT related equipment that could
potentially store confidential
information.  (Finding 15, pages
47-52)  This finding has been reported
since 2008.

We recommended the Department
strengthen internal control over the
recording and reporting of State
property by strengthening its
inventory and recordkeeping practices
to ensure compliance with statutory
and regulatory requirements.

The Department accepted our
recommendation and stated it was
working to fill key positions and get
the new employees properly trained on
inventory and recordkeeping practices
to ensure compliance with statutory
and regulatory requirements.  The
Department also stated it had created
an internal focus group to implement
procedures that are in compliance with
statutory and regulatory requirements.

LACK OF DEPARTMENT-WIDE DISASTER
RECOVERY PLAN OR TESTING TO ENSURE
RECOVERY OF APPLICATIONS AND DATA

The Department did not provide
adequate planning for the recovery of
its applications and data.

During our testing, we noted the
following:

• The Department had not developed a
Department-wide disaster recovery plan
or performed disaster recovery testing
during the examination period.

• The Department had application
specific recovery plans for four
applications; however, these plans
lacked some elements such as training
requirements and testing schedules.

• The Department provided an updated
Business Impact Analysis (BIA) dated
August 30, 2021.  The BIA documented
seven business areas and 40 business
functions and applications that
support them.  However, the Department
had not fully incorporated the results
of its BIA into its contingency plans.
(Finding 22, pages 64-65) This finding
has been reported since 2018.

We recommended the Department develop
a Department-wide Recovery Plan and
incorporate the results of its BIA to
ensure recovery plans reflect the
needs of the Department.  In addition,
we recommended disaster recovery
testing of critical systems and
components be conducted and documented
at least annually.

The Department accepted our
recommendations and stated it had
initiated contact with the Department
of Innovation and Technology for
assistance in both strengthening
existing disaster recovery plans and
developing plans for the remaining
systems.  Additionally, the Department
stated it would update the 2021 BIA as
needed and continue to incorporate the
results into its contingency plans.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by Department
personnel.  We will review the
Department’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
Department for the two years ended
June 30, 2022, as required by the
Illinois State Auditing Act.  The
accountants qualified their report on
State compliance for Findings 2022-002
and 2022-015.  Except for the
noncompliance described in these
findings, the accountants stated the
Department complied, in all material
respects, with the requirements
described in the report.

This State compliance examination 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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