REPORT DIGEST

DEPARTMENT OF REVENUE

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  February 5, 2026

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: 1

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

INTRODUCTION

This digest covers the financial audit of
the Illinois Department of Revenue
(Department) as of and for the year ended
June 30, 2024. A digest covering the
Department’s State Compliance Examination
for the two years ended June 30, 2024 will
be released separately.

SUBSEQUENT DISCOVERY OF FACTS

Subsequent to the original issuance of the
financial statements, an error was
discovered regarding the Department’s
reporting of a change in reporting entity,
resulting in a material misstatement to the
Department’s financial statements as is
described in footnote 17, which has since
been corrected by this reissuance.

SYNOPSIS

• (24-01) The Illinois Department of
Revenue (Department) failed to identify and
report the full impact of a change in the
reporting entity.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

ERROR IN FINANCIAL REPORTING FOR CHANGE IN
REPORTING ENTITY

The Illinois Department of Revenue
(Department) failed to identify and report
the full impact of a change in the
reporting entity.

During the fiscal year, there was a change
in the reporting entity resulting from
Public Act 103-0008 which transferred the
role of funding agent for the Illinois
Housing Development Authority (IHDA), a
component unit of the State, from the
Department to the Illinois Department of
Human Services on July 1, 2023. The
Department evaluated the impact of this
change on the financial statements of the
Department and reported a restatement of
opening net position/fund balance based on
the financial impact of two governmental
funds, one which is an account of the
General Fund and one which is a non-major
special revenue fund. However, subsequent
to the issuance of the Department’s
financial statements, it was discovered
that the restatement did not take into
account all required elements. The
Department should have also considered the
eligibility requirements when recognizing
the advances in the governmental funds and
the prepaid expense balance recorded
through a government wide reconciling item
on the Statement of Net Position as of June
30, 2023, related to their role as funding
agent for IHDA. The audited financial
statements for the year ended June 30, 2024
were required to be recalled and reissued.
The Department’s June 30, 2024 financial
statements have been adjusted to reflect
this correction. The impact reduced net
position as of the beginning of the year
and general government expenses on the
Statement of Activities by $391 million
respectively. (Finding 1, pages 63-64)

We recommended the Department continue to
monitor all financial reporting
requirements under the standards set by the
GASB and work with the Illinois Office of
the Comptroller, the Governor’s Office of
Management and Budget and all other
applicable parties to continue to assist in
the State’s financial reporting process
moving forward.

The Department stated it will continue to
prioritize accurate financial reporting. In
addition, the Department stated it has
implemented the auditor’s recommendation.

AUDITOR’S OPINION

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

This financial audit 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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