REPORT DIGEST

DEPARTMENT OF REVENUE

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  April 23, 2026

FINDINGS THIS AUDIT: 9

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  1 -- 2 -- 3
Category 2:  0 -- 6 -- 6
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 8 – 9

FINDINGS LAST AUDIT: 18

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, AUDITOR GENERAL

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Monroe, Suite 306, Springfield, IL
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(217) 782-6046 or TTY (888) 261-2887

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www.auditor.illinois.gov

SYNOPSIS

• (24-03) The Department of Revenue
(Department) was unable to provide adequate
records substantiating the completeness of
populations for one or more laws,
regulations, or other requirements.
• (24-07) The Department did not have
adequate internal controls in place over
access to restricted areas.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

COMPLETE POPULATIONS NOT PROVIDED

The Department of Revenue (Department) was
unable to provide adequate records
substantiating the completeness of
populations for one or more laws,
regulations, or other requirements.

During our examination, we noted the
following:

• While testing compliance with
commodities, we requested the Department’s
commodities year-end balances (quantity)
for Fiscal Years 2023 and 2024. To
determine completeness of the listings, we
recalculated ending balances based on the
supporting documents. The recalculation for
Fiscal Year 2023 resulted in 38,468 less
commodity items than the ending balance
provided by the Department. This also
resulted in an incorrect beginning balance
for Fiscal Year 2024. The recalculation for
Fiscal Year 2024 resulted in 74,971 more
commodity items than the ending balance
provided by the Department. As a result, we
are unable to determine if there were other
items which should have been included in
the commodity balances which we may be
unaware.

• While testing compliance with Agency
Workforce Reports, the supporting
documentation to support Fiscal Years 2022
and 2023 Reports, filed in Fiscal Years
2023 and 2024, respectively, were not
complete and accurate. Specifically, the
number of employees in the support provided
does not reconcile with the agency reports
both in total and per breakdown.

• While testing compliance with personal
services, we requested the Department’s
employee populations for employees who were
hired, employees who had separated
employment from the Department, and active
employees as of the last payroll period for
Fiscal Years 2023 and 2024. While reviewing
the lists, the following exceptions were
noted:
-- 6 employees who separated during Fiscal
Year 2023 were improperly excluded from the
termination listing.
-- 2 employees were not included on the
active list for Fiscal Year 2023.
-- 5 employees were improperly excluded
from the new hires listing for Fiscal Year
2023.
-- 1 employee was improperly excluded from
the new hires listing for Fiscal Year 2024.
-- 12 employees who separated during Fiscal
Year 2024, were improperly excluded from
the termination listing.
-- 6 employees were included on the
termination listing for Fiscal Year 2023
but were not listed on the Fiscal Year 2022
active listing or the Fiscal Year 2023 new
hire testing.
-- 1 employee was improperly included in
the termination listing for Fiscal Year
2024.
-- Using reports provided by the
Department, we were unable to reconcile the
total population for employees.

• While testing compliance for
telecommunications, we requested the
Department provide a population of active
and returned cellular devices assigned to
employees of the Departments as of June 30,
2023, and June 30, 2024. Upon examining the
populations provided, we identified
multiple inaccuracies with the populations
provided related to removal dates. While
reviewing the lists, the following was
noted:
-- 11 phones were included on the
Department listing that should not have
been included in the removals population.
-- 21 phones were included on the
Department listing that could not be
concluded on whether the phones should have
been included in the removals population or
not.

Despite the population limitations above
which hindered our ability to conclude
whether the selected sample was
representative of the population as a
whole, we obtained the populations provided
by the Department for each of the areas
above, selected a sample, and tested for
compliance. For the samples tested, we
reported noncompliance in the following
Findings 2024-005 for Exceptions in Testing
Personnel and Finding 2024-008 Agency
Workforce Reports. (Finding 3, pages
14-16). This finding has been reported
since 2018.

We recommended the Department strengthen
controls over the records maintained for
each area in which a compliance requirement
is present.

The Department accepted the recommendation
and stated it will implement controls and
processes to mitigate future exceptions
related to those listed above. Further, the
Department stated controls and processes
will include clarifying information
provided in populations with source
document defining the reports’ parameters
and descriptors for our report data.
FAILURE TO DEMONSTRATE RESTRICTED ACCESS
WAS ADEQUATELY MAINTAINED

The Department of Revenue (Department) did
not have adequate internal controls in
place over access to restricted areas.

During the testing of restricted area
access, the Department was unable to
provide sufficient evidence demonstrating
employees’ restricted access was
appropriate. Specifically, we noted the
following:

• For 9 of 25 (36%) employees sampled for
user access, the Department could not
provide the completed ID-85 form
documenting the employee’s approval for
access to the restricted area.

• For 14 of 22 (64%) employees sampled for
user revocation, the Department could not
provide the completed ID-85 form
documenting the employee’s request for user
access revocation. (Finding 7, page 25)

We recommended the Department strengthen
its internal controls over access to
restricted areas.

The Department accepted the recommendation
and stated it has updated its procedures to
ensure the appropriate documentation is
retained. In addition, the Department
stated it has updated the form to include a
section for revocation of access.

OTHER FINDINGS

The remaining findings pertain to an error
in financial reporting for change in
reporting entity, inadequate controls over
access to GenTax, inadequate controls over
contingency planning, exceptions in testing
personnel, inadequate controls over
processing and recording State property and
equipment, inadequate controls over Agency
Workforce Reports, and weaknesses in
cybersecurity programs and practices. We
will review the Department’s progress
towards the implementation of our
recommendations in our next State
compliance examination.

AUDITOR’S OPINIONS

The financial audit report was previously
released. The auditors stated the financial
statements of the Department of Revenue as
of and for the year ended June 30, 2024 are
fairly stated in all material respects.

The financial audit was conducted by RSM US
LLP.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Department of
Revenue for the two years ended June 30,
2024, as required by the Illinois State
Auditing Act. The accountants qualified
their report on State compliance for
Findings 2024-001 through 2024-003. 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 RSM US LLP.

COURTNEY DZIERWA
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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