REPORT DIGEST

DEPARTMENT OF EMPLOYMENT SECURITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  August 20, 2026

FINDINGS THIS AUDIT: 12

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 3 -- 3
Category 2:  1 -- 8 -- 9
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 11 -- 12

FINDINGS LAST AUDIT: 23

State of Illinois, Office of the Auditor
General
CHRISTOPHER B. MEISTER, 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

• (25-1) The Department of Employment
Security (Department) did not prepare its
monthly bank reconciliations timely.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER CASH
RECONCILIATIONS

The Department of Employment Security
(Department) did not prepare its monthly
bank reconciliations timely.

During our testing of monthly bank
reconciliations, we noted that the
Department did not prepare monthly bank
reconciliations of the Unemployment
Compensation Trust Fund (Fund 1138). The
Department prepared year-end
reconciliations for Fund 1138, but the
Department prepared them 28 to 76 days
late and reviewed them 30 to 81 days late.
(Finding 1, page 9) This finding has been
reported since 2020.

We recommended the Department prepare a
monthly reconciliation for every cash
account and fund, which reconciles the
bank and general ledger balances. We also
recommended each monthly bank
reconciliation be timely completed and
reviewed and approved by a supervisor.

The Department accepted our
recommendations.

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, 2025, as
required by the Illinois State Auditing
Act.  The accountants qualified their
report on State compliance for Findings
2025-001 through 2025-003. 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 RSM US LLP.

COURTNEY DZIERWA
Deputy Auditor General

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

CHRISTOPHER B. MEISTER
Auditor General

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