REPORT DIGEST

ILLINOIS POWER AGENCY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2022

Release Date:  July 20, 2023

FINDINGS THIS AUDIT: 2

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


INTRODUCTION

This digest covers the Illinois Power
Agency’s (Agency) Compliance
Examination for the two years ended
June 30, 2022.  A digest covering the
Agency’s non-shared governmental funds
Financial Audit as of and for the year
ended June 30, 2022 was previously
released on June 13, 2023.  In total,
this report contains two findings, one
of which was reported in the Financial
Audit.

SYNOPSIS

• (22-02) The Agency did not utilized
the State’s Enterprise Resource
Planning System as its main accounting
system.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO FULLY UTILIZE THE STATE’S
ENTERPRISE RESOURCE PLANNING SYSTEM

The Agency did not utilize the State’s
Enterprise Resource Planning (ERP)
System as its main accounting system,
which resulted in unnecessary
inefficiency.

The Agency utilizes an accounting
system other than the State’s ERP as
its main accounting system, which
necessitates a reconciliation between
its two systems. The Agency did not
fully reconcile its accounting system
to the State’s ERP until approximately
six months after year-end.  Failure to
timely complete the reconciliation
caused journal entries to be identified
by the Agency.  (Finding 2, page 11)

We recommended the Agency to transition
to utilizing the State’s ERP System as
its main accounting system and ensure a
timely reconciliation of its accounting
systems until this transition is
complete.

Agency officials agreed with the
finding.

OTHER FINDINGS

The remaining finding related to
internal controls over financial
statement close process is reportedly
being given attention by the Agency.
We will review the Agency’s progress
towards the implementation of our
recommendations in our next engagement.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Agency
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 Finding 2022-001.
Except for the noncompliance described
in this finding, the accountants stated
the Agency complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by Plante & Moran PLLC.

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:JGR