REPORT DIGEST

ILLINOIS COMMERCE COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  April 25, 2024

FINDINGS THIS AUDIT: 10

CATEGORY:  NEW -- REPEAT – TOTAL

Category 1:  1 -- 1 -- 2
Category 2:  2 -- 6 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 7 -- 10

FINDINGS LAST AUDIT: 9

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

SYNOPSIS

• (23-01) The Commission’s internal controls
over its voucher processing function were
not operating effectively during the
examination period.

• (23-02) The Commission did not exercise
adequate controls over receipts.

• (23-03) The Commission lacked adequate
control over its accounts receivable.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

VOUCHER PROCESSING INTERNAL CONTROLS NOT
OPERATING EFFECTIVELY

The Illinois Commerce Commission’s
(Commission) 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 System (ERP) operated by
the Department of Innovation and Technology
(DoIT), we were able to limit our voucher
testing at the Commission to determine
whether certain key attributes were properly
entered by the Commission’s staff into the
ERP. In order to determine the operating
effectiveness of the Commission’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 1) vendor information, 2)
expenditure amount, 3) object(s) of
expenditure, and 4) the later of the receipt
date of the proper bill or the receipt date
of the goods and/or services.

Our testing noted 8 of 140 (6%) attributes
were not properly entered into the ERP
System, specifically for attribute 4
pertaining to proper receipt date.
Therefore, the Commission’s internal
controls over voucher processing were not
operating effectively.

Due to this condition, we qualified our
opinion because we determined the Commission
has not complied, in all material respects,
with applicable laws and regulations,
including the State uniform accounting
system, in its financial and fiscal
operations.

Even given the limitations noted above, we
conducted an analysis of the Office’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 Commission
did not timely approve 357 of 4,942 (7%)
vouchers processed during the examination
period, totaling $423,041. We noted these
late vouchers were submitted by the
Commission to the Comptroller’s Office
between 1 and 70 days late. (Finding 1,
pages 11-12)

We recommended the Commission design and
maintain internal controls to provide
assurance its data entry of key attributes
into ERP is complete and accurate. Further,
we recommended the Commission approve proper
bills within 30 days of receipt.

The Commission agreed with the finding and
stated it will review its processes to
ensure proper controls over data entry and
voucher processing.

INADEQUATE CONTROLS OVER RECEIPTS

The Illinois Commerce Commission
(Commission) did not exercise adequate
controls over receipts.

According to Commission records, the
Commission collected total revenues of $40.4
million and $29.2 million which were
deposited into six funds during Fiscal Years
2022 and 2023, respectively.

During our review of receipt account codes
used by the Commission, we noted three of 43
(7%) receipt account codes have been
inactive or not been used since Fiscal Year
2017 and were not requested for deletion.

For 60 receipts tested during the
examination period, we noted the following:

• Two (3%) receipts tested, totaling
$75,049, the receipt information (check
number) from the Commission's records did
not agree with the supporting documentation.

• One (2%) receipt tested, amounting $2,500,
the Receipts Deposit Transmittal (RDT) form
was sent to the Office of the Comptroller 33
days after the deposit was made (3 days
late).

During our review of the Commission’s Agency
Fee Imposition Report (Report) for Fiscal
Year 2022 and Fiscal Year 2023 we noted the
following:

• For four of 25 (16%) fees tested, the
Report did not contain the statutory or
other authority for the imposition of the
fees, the funds into which the fees are
deposited, the information on the use of the
funds, if earmarked, and finally, the degree
to which the goals of the program are met.

• The total receipts reported on the
Commission’s Agency Fee Imposition Report
for Fiscal Year 2022 and Fiscal Year 2023
did not agree with the Commission’s receipt
ledgers. The Fiscal Year 2022 Report was
understated by $209,569 and the Fiscal Year
2023 Report was understated by $355.

• The Commission did not include solar
installer certification fees in the Fiscal
Year 2022 Report which resulted in an
understatement of $21,000. Further, the
Commission did not include solar installer
certification and miscellaneous Public
Utility Fund fees in the Fiscal Year 2023
Report which resulted in an understatement
of $607,000. (Finding 2 pages 13-16) This
finding has been reported since 2019.

We recommended the Commission establish
adequate controls over the receipts process
to ensure RDT forms are prepared timely, and
accurate and adequate records of receipts
are maintained.  We also recommended the
Commission ensure Fee Imposition Reports
accurately report all pertinent activity.

The Commission agreed with our finding and
stated it will review its processes to
ensure proper controls over receipts and
related reporting.

INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE

The Illinois Commerce Commission
(Commission) lacked adequate control over
its accounts receivable.

As of June 30, 2023, the Commission reported
accounts receivable of $2.9 million (net of
estimated uncollectible accounts, totaling
$0.9 million) to the Office of Comptroller.

Inadequate Collection Attempts
During testing of 60 accounts receivable, we
noted the Commission did not make adequate
collection attempts. We noted the following:

• 17 (28%) of the tested accounts, totaling
$74,672, were over 90 days past due but not
referred to the Department of Revenue’s Debt
Collection Bureau.

• 12 (20%) of the tested accounts, totaling
$68,722, were over 90 days past due but not
referred to the Comptroller’s Illinois Debt
Recovery Offset Portal (IDROP) system.

Uncollectible Accounts Not Referred for
Write-Off
During testing of 60 accounts receivable, we
noted 10 (17%) accounts, totaling $65,847,
appeared to be uncollectible; however, the
Commission had not referred these accounts
to the Office of the Attorney General for
certification the debt was uncollectible.
(Finding 3 pages 17-18) This finding has
been reported since 2013.

We recommended the Commission pursue all
reasonable and appropriate measures to
collect outstanding debts as required by
State laws and regulations.  Further, we
recommended the Commission report
uncollectable amounts to the Attorney
General.

The Commission agreed with our finding and
stated it will continue progress towards
disposition of all outstanding debts as
required.

OTHER FINDINGS

The remaining findings pertain to inadequate
controls over personal services, monthly
reconciliations, and state vehicles,
untimely or non-submission of reports,
failure to provide proper notification of
impending expiration of licenses and
recovery permits, and weaknesses in
Cybersecurity programs and practices. We
will review the Commission’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 Agency 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 Agency
complied, in all material respects, with the
requirements described in the report.

This State compliance examination was
conducted by Adelfia 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

FJM:EGB