REPORT DIGEST

ILLINOIS POWER AGENCY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  June 13, 2023

FINDINGS THIS AUDIT: 1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

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

The Illinois Power Agency’s (Agency)
goals and objectives are (1) to oversee
the electricity planning and
procurement processes to ensure
adequate, reliable, affordable,
efficient, and environmentally
sustainable electric service at the
lowest cost over time for the
residential and small commercial
customers of power utility companies;
(2) to procure renewable energy using
the resources of the Illinois Power
Agency Renewable Energy Resources Fund;
(3) to develop and implement a Zero
Emission Standard Procurement Plan; and
(4) to develop a Long-Term Renewable
Resources Procurement Plan and
implement the programs and procurements
contained in the Plan, including the
Adjustable Block Program and the
Illinois Solar for All Program.

SYNOPSIS

• (22-01) The Agency did not complete
the final closing of its accounting
records accurately or timely.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUTE CONTROLS OVER FINANCIAL
STATEMENT CLOSE PROCESS

The Agency did not complete the final
closing of its accounting records
timely or within the timelines
established by the Statewide Accounting
Management System (SAMS) manual. In
addition, the financial statements
provided to the auditors were initially
not accurate.

The Agency’s year-end close process was
completed over six months after year-
end. The delayed procedures included
delayed reconciliations of subsidiary
ledgers to the general ledger for
accounts receivable, accounts payable,
revenue, and expenses. General ledger
account balances were not appropriately
stated on the trial balance and
financial statements provided to
auditors at the start of the audit
process. The Agency’s Generally
Accepted Accounting Principles (GAAP)
reporting packages were submitted to
the Comptroller’s Office on August 19,
2022 for Fund 424,
Fund 425, and Fund 836, and on
September 28, 2022 for Fund 1408. A
complete set of GAAP basis financial
statements were submitted on October
17, 2022.  (Finding 1, pages 23-24)

We recommended the Agency timely
prepare and submit GAAP basis reporting
packages and financial statements to
the Comptroller in accordance with the
SAMS manual. Further, we recommended
the trial balances and financial
statements, when provided to auditors
in a timely manner, are complete and
accurate.

Agency agreed with the finding.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Agency as of and for
the year ended June 30, 2022, are
fairly stated in all material respects.

This financial audit 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