REPORT DIGEST

OFFICE OF THE SECRETARY OF STATE

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  April 25, 2024

FINDINGS THIS AUDIT: 12

CATEGORY:  NEW -- REPEAT – TOTAL

Category 1:  0 -- 0 -- 0
Category 2:  4 -- 8 -- 12
Category 3:  0 -- 0 -- 0
TOTAL:  4 -- 8 -- 12

FINDINGS LAST AUDIT: 15

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, 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 Office of the
Secretary of State’s (Office) compliance
examination for the two-years ended June 30,
2023. A separate digest covering the
Office’s financial audit as of and for the
year ending June 30, 2023 was released under
a separate cover.  In total, this report
contains twelve findings, one of which was
reported in the Financial Audit.

SYNOPSIS

• (23-03)  The Office did not implement an
electronic lien and title system.

• (23-04)  The Office did not demonstrate
adequate control over property and
equipment.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS


NONCOMPLIANCE WITH VEHICLE CODE

The Office of the Illinois Secretary of
State (Office) has not implemented an
electronic lien and title (ELT) system under
the provisions of the Illinois Vehicle Code
(625 ILCS 5/3 100.1 thru 5/3-100.2) (Code).

During the engagement period, the Office had
not yet implemented the ELT system. Office
management indicated all standards and
procedures for the establishment of
operation of the ELT system are currently in
development, but have not yet been
solidified and not yet adopted in
administrative rule. The Code required the
Office to implement, manage, and administer
an ELT system no later than July 1, 2022.
(Finding 3, pages 16-17)

We recommended the Office comply with the
requirements of the Code and ensure the ELT
system is developed and implanted promptly.

The Office agreed with the recommendation
and has taken steps to launch the program
this year.

WEAKNESS RELATED TO PROPERTY AND EQUIPMENT

The Office did not demonstrate adequate
control over property and equipment during
the engagement period. Specific deficiencies
noted as a result of our testing are
described below:

• Nine of forty (23%) items, totaling
$339,957, of property and equipment tested
were not added to property acquisition
records in a timely manner as required by
the Illinois Administrative Code (44 Ill.
Adm. Code 5010.400). The assets were added
20 to 581 days late.

• During testing of property inventory at
twelve site visits at the Office’s drivers’
facilities, one of 120 items (1%) that was
listed on the Office’s property records was
unable to be located physically at one of
the facilities. The item was a Verifone
Credit Card Reader.

• During testing of the Office’s preparation
of the Agency Report of State Property
(C-15), we noted various errors in four of
eight (50%) quarters tested. (Finding 4,
pages 18-20)  This finding has been reported
since 2019.


We recommended the Office implement controls
and procedures to ensure its property and
equipment is reported and accounted for in a
manner which complies with State statutes
and the Illinois Administrative Code.

Office officials agreed with the
recommendation and stated the Office has
since overhauled the Office’s policies and
procedures.

OTHER FINDINGS

The remaining compliance findings pertain to
inaccurate census data, computing
environment weaknesses, noncompliance with
various statutory mandates, and weaknesses
related to service providers, user access,
Payment Card Industry Data Security
Standards, vehicle stickers and
administration, and cybersecurity programs.
We will review the Office’s progress towards
the implementation of our recommendations in
our next compliance examination.

AUDITOR’S OPINION

The financial audit report was released
under a separate cover. The auditors stated
the financial statements of the Office as of
and for the year ended June 30, 2023, are
fairly stated in all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the Office for the two-years
ended June 30, 2023, as required by the
Illinois State Auditing Act.  The
accountants stated the Office complied, in
all material respects, with the requirements
described in the report.

This State compliance examination was
conducted by Sikich, LLP.

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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