REPORT DIGEST

ILLINOIS DEPARTMENT OF HUMAN RIGHTS

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  April 16, 2024

FINDINGS THIS AUDIT: 13

CATEGORY:  NEW -- REPEAT – TOTAL

Category 1:  2 -- 0 -- 2
Category 2:  4 -- 7 -- 11
Category 3:  0 -- 0 -- 0
TOTAL:  6 -- 7 -- 13

FINDINGS LAST AUDIT: 12

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, 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

INTRODUCTION

This digest covers the Illinois Department
of Human Rights’ (Department) State
Compliance Examination for the two years
ended June 30, 2023.

SYNOPSIS

• (23-1) The Department’s internal controls
over its voucher processing function were
not operating effectively during the
examination period.
• (23-3) The Department did not meet the
procedural time limits set forth when a
charge of a civil rights violation had been
filed and when a complainant filed a request
to opt out of the Department’s
investigation.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

VOUCHER PROCESSING INTERNAL CONTROLS NOT
OPERATING EFFECTIVELY

The Illinois Department of Human Rights’
(Department) 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
(DoIT), we were able to limit our voucher
testing at the Department to determine
whether certain key attributes were properly
entered by the Department’s staff into the
ERP System. In order to determine the
operating effectiveness of the Department’s
internal controls related to voucher
processing and subsequent payment of
interest, we selected a sample of key
attributes (attributes) to determine if the
attributes were properly entered into the
State’s ERP System based on supporting
documentation. The attributes tested were
vendor information, expenditure amount,
object(s) of expenditure, and the later of
the receipt date of the proper bill or the
receipt date of the goods and/or services.

Our testing noted 4 of 140 (3%) attributes
were not properly entered into the ERP
System. Therefore, the Department’s internal
controls over voucher processing were not
operating effectively.

Even given the limitations noted above, we
conducted an analysis of the Department’s
expenditures data for Fiscal Years 2022 and
2023 to determine compliance with the State
Prompt Payment Act and the Illinois
Administrative Code. We noted the following
noncompliance:

• The Department owed a vendor interest
totaling $220 in Fiscal Year 2023; however,
the Department had not approved the voucher
for payment to the vendor.

• The Department did not timely approve 130
of 1,232 (11%) vouchers processed during the
examination period, totaling $539,556. We
noted these late vouchers were approved
between 1 and 182 days late.

• For one of 35 (3%) vouchers tested,
totaling $64,150, the Department failed to
maintain supporting documentation showing
the dates invoices were received. (Finding
1, pages 10-12)

We recommended the Department design and
maintain internal controls to provide
assurance its data entry of key attributes
into the ERP System is complete and
accurate. We also recommended the Department
strengthen its internal controls to ensure
bills are processed within 30 days of
receipt, vouchers are approved for payment
of interest due to vendors, and supporting
documentation is properly maintained.

The Department accepted our recommendations,
and stated that its Chief Fiscal Officer
would strengthen controls over voucher
processing, including additional detailed
review of voucher entries into the ERP
System, improving timeliness of processing
by tightening time frames for invoice
submission, payment of vendor interest, and
retention of supporting documentation.

NONCOMPLIANCE WITH STATUTORILY MANDATED TIME
LIMITS

The Department did not meet the procedural
time limits set forth when a charge of a
civil rights violation had been filed and
when a complainant filed a request to opt
out of the Department’s investigation.

In our review of 60 employment cases filed
with the Department, we noted the following:

• In 15 (25%) employment cases tested, the
Department did not serve a copy of the
charge to the respondent within 10 days of
the day the charge was filed. The charges
were served to the respondent from 1 to 161
days late.

• In 15 (25%) employment cases tested, the
Department did not serve a notice to the
complainant of the complainant’s right to
file a complaint with the Human Rights
Commission or commence a civil action in the
appropriate circuit court within 10 days of
the day the charge was filed. These notices
were served to the complainant from 1 to 161
days late.

• In 15 (25%) cases tested, the Department
did not serve a notice to the respondent of
the complainant’s right to file a complaint
with the Human Rights Commission or commence
a civil action in the appropriate circuit
court within 10 days of the day the charge
was filed. These notices were served to the
respondent from 1 to 161 days late.

In addition, in our testing of 24 employment
cases where the complainant requested to opt
out of the Department’s investigation, we
noted the Department did not issue the
required notice to the parties for 7 (29%)
employment cases within 10 business days of
receipt of the complainants’ request to opt
out of the investigation. The notices were
issued from 2 to 17 days late. (Finding 3,
pages 16-18)

This finding has been reported since 2017.

We recommended the Department timely notify
the appropriate parties as mandated by the
Illinois Human Rights Act.

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, 2023, as required by
the Illinois State Auditing Act.  The
accountants qualified their report on State
compliance for Findings 2023-001 and
2023-002.  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 Roth & Co. 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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