REPORT DIGEST

LEGISLATIVE REFERENCE BUREAU

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  March 28, 2024

FINDINGS THIS AUDIT: 4

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 1 -- 2
Category 2:  0 -- 2 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 – 3 -- 4

FINDINGS LAST AUDIT:  4

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

SYNOPSIS

• (23-01) The Legislative Reference Bureau
(Bureau) did not maintain adequate
segregation of duties in the areas of
employee timekeeping and accrued benefits.

• (23-02) The Bureau did not have adequate
controls over the monthly reconciliations of
appropriations and expenditures during
Fiscal Year 2022 and Fiscal Year 2023.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

The Legislative Reference Bureau (Bureau)
did not maintain adequate segregation of
duties in the areas of employee timekeeping
and accrued benefits.

During testing, we noted one employee had
the authority to submit and approve his/her
own timesheets, was responsible for
maintaining his/her own accrued benefits
records, and the authority to prepare and
make adjustments to payroll. We tested 53
weekly timesheets submitted by the employee
during Fiscal Year 2023 and noted all were
approved by the same employee, no evidence
of oversight of the employee’s accrued
benefits records, and no documentation a
detailed review of the employee’s payroll
was completed. (Finding 1, page 8)

We recommended the Bureau allocate
sufficient personnel in order to maintain
effective internal control over the
authorization, custody, and record keeping
over payroll. In addition, documentation
should be maintained to support the controls
are functioning as designed.

Bureau officials accepted the finding and
noted they appreciate the audit team
bringing this issue to their attention. They
have adopted a process to ensure that their
employee’s timekeeping records are now
approved by another employee.

INADEQUATE CONTROLS OVER MONTHLY
RECONCILIATIONS

The Legislative Reference Bureau (Bureau)
did not have adequate controls over the
monthly reconciliations of appropriations
and expenditures during Fiscal Year 2022 and
Fiscal Year 2023.

During testing, we noted the Bureau prepared
insufficient reconciliations between Bureau
records and the Office of Comptroller’s
(Comptroller) Monthly Appropriation Status
Report (SB01) during Fiscal Year 2022 and
Fiscal Year 2023. The SB01 reconciliations
did not include unpaid reconciling items
between the Bureau and the Comptroller's
Office. The unpaid reconciling items not
identified by the Bureau totaled $92,610 and
$289,730 at June 30, 2022 and June 30, 2023,
respectively. (Finding 2, page 9)  This
finding has been reported since 2019.

We recommended the Bureau perform
appropriation and expenditures
reconciliations in accordance with SAMS.

Bureau officials accepted the finding and
noted they appreciate the auditors drawing
this accounting error to their attention.
They were not aware that items in transit
were to be accounted for separately at the
end of the fiscal year, and they have now
changed their procedures to ensure that end-
of-year purchases are either not made or are
properly accounted for as items in transit.

OTHER FINDINGS

The remaining findings pertain to weaknesses
in cybersecurity programs and practices and
untimely submission of and errors in Agency
Workforce Reports. We will review the
Bureau’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 Bureau 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 Finding 2023-001 and
2023-002.  Except for the noncompliance
described in these findings, the accountants
stated the Bureau complied, in all material
respects, with the requirements described in
the report.

This State compliance examination was
conducted by West & Company, 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

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