REPORT DIGEST

STATE OF ILLINOIS STATEWIDE SINGLE AUDIT
REPORT

SINGLE AUDIT
FOR THE YEAR ENDED June 30, 2023

Release Date:  September 22, 2025

FINDINGS THIS AUDIT: 46

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  27 -- 18 -- 45
Category 2:  1 -- 0 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  28 -- 18 -- 46

FINDINGS LAST AUDIT: 34

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

SYNOPSIS

• The State expended approximately $44.8
billion from federal awards in FY23.

• A total of 29 programs or program clusters
were classified and audited as major
programs at 10 State agencies.  These
programs constituted approximately 87.9% of
all federal spending, or about $39.4
billion.  In addition, 44 State agencies
expended federal financial assistance in
FY23.  Ten State agencies accounted for
about 96.6% of federal dollars spent.

Statewide Finding – Financial Reporting

• The State of Illinois does not have an
adequate process in place to permit the
timely and accurate completion of the
Schedule of Expenditures of Federal Awards.
As a result, the State has a material
weakness on all federal programs for
financial reporting.

Auditor’s Adverse Opinion on Major Program

The Department of Human Services:
• Did not perform a risk assessment or
subrecipient monitoring procedures for the
subrecipient of the COVID-19 – Homeowner
Assistance Fund (HAF) program for the year
ended June 30, 2023.
• Did not prepare accurate federal financial
reports (Paperwork Reduction Act (PRA)
1505-0269) for the HAF program.

The Illinois Criminal Justice Information
Authority:
• Did not follow its established program
monitoring policies and procedures for
subrecipients of the Crime Victim Assistance
(CVA) program for fiscal year 2023.
• Did not adequately review single audit
reports received from its subrecipients for
the CVA program on a timely basis.
• Did not follow its established policies
and procedures for monitoring subrecipients
of the CVA program.
• Failed to report subaward information
required by the Federal Funding
Accountability and Transparency Act (FFATA)
for awards granted to subrecipients of the
CVA program.

Significant Agency Findings Classified as
Material Noncompliance Resulting in an
Auditor Qualification

The Illinois Governor’s Office of Management
and Budget:
• Did not prepare accurate federal project
and expenditure reports for the COVID-19 –
Coronavirus State and Local Fiscal Recovery
Funds (CSLFRF) Program.

The Department of Human Services:
• Failed to provide supporting documentation
for the post-expenditure report including a
key line item, the number of eligible
individuals who received services paid for
in part or in whole with federal funds under
the Social Services Block Grant (Title XX)
program.
• Could not locate case file documentation
supporting certain eligibility and special
tests requirements for beneficiaries of the
Temporary Assistance for Needy Families
(TANF) program.
• Did not maintain the required aggregate
State expenditures for the Maintenance of
Effort (MOE) requirements for the Block
Grants for Prevention and Treatment of
Substance Abuse (SAPT) program.
• Did not follow its established program
monitoring policies and procedures for
subrecipients of the TANF, Child Care and
Developmental Fund (CCDF) Cluster, Social
Services Block Grant (SSBG), and SAPT
programs.
• Did not obtain the required certifications
at the time of application for certain
providers of the CCDF Cluster receiving
American Rescue Plan (ARP) Act stabilization
funds.
• Could not provide documentation to support
payments made on behalf of the beneficiaries
of the TANF and CCDF Cluster programs.
• Did not adequately review single audit
reports received from its subrecipients for
the Special Supplemental Nutrition Program
for Women, Infants, and Children (WIC),
TANF, CCDF Cluster, SSBG, and SAPT programs
on a timely basis.
• Made improper payments to beneficiaries of
the TANF program.
• Did not have an adequate process for
monitoring interagency expenditures claimed
under or used to meet Maintenance of Effort
(MOE) requirements of the TANF and CCDF
Cluster programs.
• Did not obtain and review periodic
performance reports for subrecipients of
Emergency Rental Assistance (ERA) and CSLFRF
programs during the year ended June 30,
2023.

The Department of Healthcare and Family
Services:
• Did not accurately report certain Medicaid
Cluster program drug rebates on quarterly
federal financial (CMS-64) reports.
• Did not perform periodic audits of the
accuracy, truthfulness, and completeness of
the encounter and financial data submitted
by, or on behalf of each Managed Care
Organization (MCO) for the Children’s Health
Insurance Program (CHIP) and Medicaid
Cluster programs during the fiscal year.
• Did not adequately screen providers of the
CHIP and Medicaid Cluster programs to ensure
that Medicaid providers were not on the
USDHHS Office of the Inspector General’s
(OIG) List of Excluded Individuals/Entities
(LEIE) at the time the voucher for the
related services performed was paid.
• Improperly continued providing benefits
under the CHIP program to individuals who
were over the age of 19 prior to the start
of the Public Health Emergency (PHE) on
March 13, 2020.
• Did not initiate any recovery audits over
Medicaid claims during the year ended June
30, 2023.
• Did not report certain Medicaid Cluster
program expenditures on CMS-64 reports in a
timely manner.
• Failed to conduct utilization reviews over
Home and Community Based Waiver Services
(HCBS) for five of the nine waivers
contracted out to their vendor during fiscal
year 2023.

The Illinois Department of Commerce and
Economic Opportunity:
• Did not maintain adequate documentation to
substantiate the amounts reported on the Low
Income Home Energy Assistance Program
(LIHEAP) Performance Data Form.
• Did not properly review or re-certify the
accuracy of the clearance pattern specified
in the Treasury-State Agreement (TSA)
related to cash draws for the LIHEAP.
• Did not perform its cash draws in
accordance with the funding technique
prescribed in the TSA.
• Did not follow its established policies
and procedures for monitoring subrecipients
of the LIHEAP.
• Did not maintain supporting documentation
for key line items or prepare accurate
special reports for the LIHEAP.

The Illinois Department of Employment
Security:
• Failed to follow established policies when
making eligibility determinations for
claimants of the Unemployment Insurance (UI)
program.
• Did not complete the Benefit Accuracy
Measurement (BAM) case file reviews in
accordance with United States Department of
Labor (USDOL) requirements for the UI
program.

The Illinois State Board of Education:
• Did not adequately monitor and document
program monitoring procedures performed over
subrecipients of the Twenty-First Century
Community Learning Centers (21st Century)
program.

In addition, the Department of Human
Services, the Department of Public Health,
the Illinois Criminal Justice Information
Authority, and the Department of
Transportation failed to report information
required by the Federal Funding
Accountability and Transparency Act (FFATA)
for awards granted to subrecipients of
various programs.  Additionally, the
Department of Commerce and Economic
Opportunity failed to maintain updated
procedures which resulted in filing
inaccurate FFATA reports.
?
INTRODUCTION

The Illinois Office of the Auditor General
conducted a Statewide Single Audit of the
FY23 federal grant programs.  The audit was
conducted in accordance with the Uniform
Guidance (Title 2 U.S. Code of Federal
Regulation Part 200, Uniform Administration
Requirements, Cost Principles, and Audit
Requirements for Federal Awards).

The Statewide Single Audit includes State
agencies that are a part of the primary
government and expend federal awards.  In
total, 44 State agencies expended federal
financial assistance in FY23.  A separate
supplemental report has been compiled by the
Governor’s Office of Management and Budget
and provides summary information on federal
spending by State agency.  The Statewide
Single Audit does not include those agencies
that are defined as component units such as
the State universities and finance
authorities.  The component units continue
to have separate single audits when
required.

The Schedule of Expenditures of Federal
Awards (SEFA) reflects total expenditures of
approximately $44.8 billion for the year
ended June 30, 2023.  Overall, the State
participated in 348 different federal
programs; however, 10 of these programs or
program clusters accounted for approximately
83.1% of the total federal award
expenditures.  (See Exhibit I)

 The funding for the 348 programs was
 provided by 25 different federal agencies.
 Exhibit II shows that five federal agencies
 provided Illinois with the vast majority of
 federal funding in FY23.

 A total of 29 federal programs or program
 clusters were identified as major programs
 in FY23.  A major program was defined in
 accordance with the Uniform Guidance as any
 program with federal awards expended that
 meets certain criteria when applying the
 risk-based approach.  Exhibit III provides
 a brief summary of the number of programs
 classified as “major” and “non-major” and
 related federal award expenditures.

Ten State agencies accounted for
approximately 96.6% of all federal dollars
spent during FY23 as depicted in Exhibit IV.

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE
FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON
INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE

The auditors’ report contained adverse
opinions and qualifications on compliance as
summarized below.  The complete text of the
Auditors’ Report may be found on pages 17-25
of the audit.

Adverse Opinion

The auditors expressed an adverse opinion on
compliance for the following major programs:
(Please see PDF version of this digest to
view the table.)

Internal Control Over Financial Reporting

We noted a matter involving internal control
over financial reporting for the Schedule of
Expenditures of Federal Awards (Schedule)
that was considered to be a material
weakness.  A material weakness is a
deficiency, or combination of deficiencies,
in internal control over financial
reporting, such that there is a reasonable
possibility that a material misstatement of
the entity’s Schedule will not be prevented,
or detected and corrected on a timely basis.
The auditors recommended the Governor’s
Office of Management and Budget (GOMB) work
together with the State agencies to
establish a corrective action plan to
address the quality of accounting
information provided to the Illinois Office
of Comptroller (IOC) which is used by GOMB
to prepare the Schedule.

Internal Control Over Compliance

We noted certain matters involving internal
control over compliance that were considered
to be significant deficiencies.  A control
deficiency in an entity’s internal control
over compliance exists when the design or
operation of a control over compliance does
not allow management or employees, in the
normal course of performing their assigned
functions, to prevent, or detect and
correct, noncompliance with a type of
compliance requirement of a federal program
on a timely basis.  A significant deficiency
in internal control over compliance is a
deficiency, or combination of deficiencies,
in internal control over compliance with a
type of compliance requirement of a federal
program that is less severe than a material
weakness in internal control over
compliance, yet important enough to merit
attention by those charged with governance.
Overall, 1 of the 46 findings reported in
the single audit was classified as a
compliance significant deficiency.

Material weaknesses were also disclosed in
our report.  A material weakness in internal
control over compliance is a deficiency, or
combination of deficiencies, in internal
control over compliance, such that there is
a reasonable possibility that material
noncompliance with a type of compliance
requirement of a federal program will not be
prevented, or detected and corrected, on a
timely basis.  Overall, 44 of the 46
findings reported in the single audit were
classified as material weaknesses.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Exhibit V summarizes the number of report
findings by State agency, identifies the
number of repeat findings, and references
the findings to specific pages in the
report. (Please see PDF version of this
digest to view the table.)

Exhibit VI summarizes the total number of
findings, number of repeated findings, and
the percentage of repeated findings for the
past ten years.

 EXHIBIT VI
 Ten Year Analysis of Number of Findings,
 Number of Findings Repeated and Percentage
 of Repeat Findings
(Please see PDF version of this digest to
view the table.)

INADEQUATE PROCESS FOR COMPILING THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

We noted the State of Illinois’ current
financial reporting process does not allow
the State to prepare a complete and accurate
Schedule of Expenditures of Federal Awards
(SEFA) in a timely manner.  Reporting issues
at various individual agencies caused delays
in finalizing the Statewide SEFA.

The State of Illinois has a highly
decentralized financial reporting process.
The system requires State agencies to
prepare financial reporting packages
designed by the Illinois Office of
Comptroller (IOC).  These financial
reporting packages are completed by
accounting personnel within each State
agency who have varying levels of knowledge,
experience, and understanding of IOC
accounting policies and procedures.  Agency
personnel involved with this process are not
under the organizational control or
jurisdiction of the IOC.

Although these financial reporting packages
are subject to review by the IOC’s financial
reporting staff during the Annual
Comprehensive Financial Report (ACFR)
preparation process and there are minimum
qualifications recommended for all new
generally accepted accounting principles
(GAAP) Coordinators who oversee the
preparation of financial reporting forms and
the Governor’s Office of Management and
Budget (GOMB) compiles the SEFA data and
performs certain supervisory review
procedures over the SEFA and evaluates
errors identified, the current process still
lacks sufficient internal controls to permit
timely and accurate reporting.  As a result,
late adjustments relative to the SEFA
continue to occur.

During fiscal year 2023, the State’s process
for compilation of the SEFA continued to be
performed on a timeline that does not permit
the State to meet the March 31st single
audit filing deadline.  The first official
draft of the SEFA was provided in December
2023.  The final SEFA and related notes were
not finalized by the State until August 2025
due to errors identified in several
agencies.  (Finding 1, pages 29-30)

We recommended GOMB work together with the
State agencies to establish a corrective
action plan to address the quality of
accounting information provided to the IOC
which is used by GOMB to prepare the SEFA.

GOMB accepted our recommendation and stated
it will continue to work with the State
agencies to produce timely and accurate
financial reporting for the preparation of
the SEFA.

FAILURE TO ACCURATELY PREPARE PERFORMANCE
REPORTS FOR THE COVID-19 CORONAVIRUS STATE
AND LOCAL FISCAL RECOVERY FUNDS PROGRAM

GOMB did not prepare accurate federal
project and expenditure reports (Paperwork
Reduction Act (PRA) 1505-0271) for the
COVID-19 – Coronavirus State and Local
Fiscal Recovery Funds (CSLFRF) program.

The State was required to prepare quarterly
federal project and expenditure reports (PRA
1505-0271) for the CSLFRF program. To assist
the State agencies, GOMB prepared these
reports. According to the U.S. Treasury’s
SLFRF Compliance and Reporting Guidance,
expenditures may be reported on a cash or
accrual basis, as long as the methodology is
disclosed and consistently applied. During
our testing of two quarterly PRA 1505-0271
reports submitted during State fiscal year
ended June 30, 2023, we noted that GOMB did
not consistently apply cash or accrual basis
for reporting and noted multiple errors on
the cash basis.

Supervisory review procedures of the PRA
1505-0271 reports have not been designed to
operate at an appropriate level of precision
to ensure the financial reports are
accurately prepared. (Finding 3, pages
36-38)

We recommended GOMB implement more precise
review procedures to ensure the reports
submitted to the U.S. Treasury are complete,
accurate, and agree or reconcile to its
financial records.

GOMB accepted our recommendation and stated
it will continue to work with the State
agencies to produce accurate financial
reporting for the CSLFRF program.

DEPARTMENT OF HUMAN SERVICES (IDHS)

We noted IDHS, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 19-21 of the Single Audit Report.

Specifically, we noted the following:

• IDHS did not perform a risk assessment or
subrecipient monitoring procedures for the
subrecipient of the COVID-19 – Homeowner
Assistance Fund (HAF) program for the year
ended June 30, 2023.  The State designated
IDHS as the State agency responsible for
monitoring of the HAF program’s
subrecipient, the Illinois Housing
Development Authority (IHDA), a discretely
presented component unit of the State.
During our testing, we noted IDHS did not
perform any subrecipient monitoring
procedures over IHDA with respect to the HAF
program during the year ended June 30, 2023.
(Finding 4, pages 39-40)

• IDHS did not prepare accurate federal
financial reports for the HAF program.
During our testing of two quarterly federal
financial reports (PRA 1505-0269) submitted
during State fiscal year ended June 30,
2023, we noted the 9/30/22 report,
Administrative Expenses line item, was
understated by $3,190,823. Supervisory
review procedures of the PRA 1505-0269
reports have not been designed to operate at
an appropriate level of precision to ensure
the financial reports are accurately
prepared. (Finding 5, pages 41-42)

• IDHS failed to provide supporting
documentation for the post-expenditure
report including a key line item, the number
of eligible individuals who received
services paid for in part or in whole with
federal funds under the Social Services
Block Grant (SSBG) program. (Finding 6,
pages 43-44)

• IDHS could not locate case file
documentation supporting certain eligibility
and special test requirements for
beneficiaries of the Temporary Assistance
for Needy Families (TANF) program. We also
noted IDHS does not have adequate resources
to perform and document eligibility
determinations. Additionally, IDHS has not
established appropriate monitoring
procedures to ensure eligibility
determinations are properly documented in
accordance with program requirements.
Because the State uses a single application
and eligibility determination process for
the Supplemental Nutrition Assistance
Program Cluster (SNAP), TANF, Medicaid
Cluster, and State Children’s Health
Insurance Program (CHIP) programs, certain
of the TANF compliance exceptions and the
inadequate internal control matters
discussed above also impact the SNAP
Cluster, Medicaid Cluster, and CHIP
programs. (Finding 7, pages 45-47)  Similar
findings on this issue have been reported
since 2001.

• IDHS did not maintain the required
aggregate State expenditures for the
maintenance of effort (MOE) requirements for
the Block Grants for Prevention and
Treatment of Substance Abuse (SAPT) program.
The shortfall totaled $11,528,128. In
addition, IDHS has not established internal
control procedures to monitor whether MOE
requirements are met. (Finding 8, pages
48-49). Similar findings on this issue have
been reported since 2014.

• IDHS did not follow its established
program monitoring policies and procedures
for subrecipients of the TANF, Child Care
and Developmental Fund (CCDF) Cluster, SSBG,
and SAPT programs. (Finding 10, pages 53-56)
Similar findings on this issue have been
reported since 2011.

• IDHS did not obtain the required
certifications at the time of application
for certain providers of the CCDF Cluster
receiving American Rescue Plan (ARP) Act
stabilization funds. During our test work
over 20 child care providers (totaling
$244,746,902), we noted IDHS could not
provide the required certifications for 6
providers who are noted as “license-exempt”
providers.  (Finding 11, pages 57-58)

• IDHS could not provide documentation to
support payments made on behalf of
beneficiaries of the TANF and CCDF Cluster
programs.  During our testing of Child Care
Assistance Program (CCAP) beneficiary
payments claimed under the TANF program (40
payments totaling $8,463 in federal claim
and $22,307 in MOE claim) and CCDF (40
payments totaling $184,226 in federal claim
and $2,385 in MOE claim), we noted 3 TANF
payments and 3 CCDF payments for which IDHS
could not provide documentation supporting
the services provided to eligible
beneficiaries which are unallowable costs.
Additionally, we noted IDHS has not
performed a monitoring review in 2023 or
either of the previous two fiscal years to
ensure billing information provided by the
child care providers is accurate for any of
the 58 unique providers sampled. As a
result, IDHS does not have adequate controls
in place to ensure information provided by
providers is accurate and the related child
care payments made were appropriate.
(Finding 14, pages 64-66)

• IDHS did not adequately review single
audit reports received from its
subrecipients for the Special Supplemental
Nutrition Program for Women, Infants, and
Children (WIC), TANF, CCDF Cluster, SSBG,
and SAPT programs on a timely basis.
(Finding 15, pages 67-69)

• IDHS made improper payments to
beneficiaries of the TANF program.  During
our testwork of 50 beneficiary payments
(with total payments sampled of $19,844), we
noted four beneficiaries (with payments of
$1,747) received payments that were
improperly calculated using amounts
inconsistent with information contained in
the beneficiary’s case file.  In addition,
IDHS identified a system error in June 2025
impacting beneficiaries whose benefit
payments were calculated using diverted
income. We further noted IDHS did not
establish control procedures at an adequate
level of precision to ensure TANF program
benefits were accurately calculated based on
the beneficiary’s case file supporting
documentation. (Finding 16, pages 70-71)

• IDHS does not have an adequate process for
monitoring interagency expenditures claimed
under or used to meet MOE requirements of
the TANF and CCDF Cluster programs. (Finding
17, pages 72-74)

• IDHS did not obtain and review periodic
performance reports for subrecipients of the
Emergency Rental Assistance (ERA) and
COVID-19 – Coronavirus State and Local
Fiscal Recovery Funds (CSLFRF) programs
during the year ended June 30, 2023.
(Finding 18, pages 75-76)

The material noncompliance noted resulted in
an adverse opinion on compliance for the HAF
program and qualified opinions on compliance
for the SSBG, SNAP Cluster, TANF, CHIP,
Medicaid Cluster, SAPT, CCDF Cluster, WIC,
ERA, and CSLFRF programs. IDHS accepted our
recommendations.

DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES
(DHFS)

We noted DHFS, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 21-22 of the Single Audit Report.

Specifically, we noted the following:

• DHFS did not accurately report certain
Medicaid Cluster program drug rebates on
quarterly federal financial (CMS-64)
reports. In October 2024, DHFS determined
the data used to calculate drug rebates
beginning in the quarter ended September 30,
2019 through June 30, 2024 erroneously
included Medicare Part D drug data which did
not pertain to beneficiaries of the Medicaid
Cluster program. The data error resulted in
drug rebates billed to and paid by
pharmaceutical companies reported on the
quarterly CMS-64 reports being overstated.
Consequently, Medicaid Cluster expenditures
were understated on both the quarterly
CMS-64 reports and on the State’s Schedule
of Expenditures of Federal Awards (SEFA) for
fiscal year 2023. We also noted the
supervisory reviews and analytical
procedures performed over the quarterly
CMS-64 reports were not designed at an
appropriate level of precision to detect the
drug rebates errors.  (Finding 19, pages
77-79)

• HFS did not perform periodic audits of the
accuracy, truthfulness, and completeness of
the encounter and financial data submitted
by, or on behalf of each Managed Care
Organization (MCO) for the CHIP and Medicaid
Cluster programs during the fiscal year.
(Finding 20, pages 80-81) Similar findings
on this issue have been reported since 2021.

• DHFS did not adequately screen providers
of the CHIP and Medicaid Cluster programs to
ensure that Medicaid providers were not on
the United States Department of Health and
Services Office of the Inspector General’s
(OIG) List of Excluded Individuals/Entities
(LEIE) at the time the voucher for the
related services performed was paid.
(Finding 21, pages 82-83) Similar findings
on this issue have been reported since 2021.

• DHFS improperly continued providing
benefits under the CHIP program to
individuals who were over the age of 19
prior to the start of the Public Health
Emergency (PHE) on March 13, 2020. (Finding
22, pages 84-85)

• DHFS did not initiate any recovery audits
over Medicaid claims during the year ended
June 30, 2023.  We noted the DHFS Office of
Inspector General (OIG)’s pre-existing
contract with the Recovery Audit Contractor
(RAC) expired at the end of fiscal year
2022. OIG executed a new RAC contract
effective August 12, 2022. Throughout fiscal
year 2023, OIG and the RAC worked to
established audit protocols and processes
for the new contract. As a result, no audits
were initiated during the year ended June
30, 2023. (Finding 23, pages 86-87)

• DHFS did not report certain Medicaid
Cluster program expenditures CMS- 64 reports
in a timely manner.  In January 2023, DHFS
and IDHS discovered expenditures under the
Home and Community Based Services waiver
program operated by IDHS had not been
claimed since January 1, 2021. As a result,
DHFS reported expenditures totaling
$508,822,205 paid by the State in prior
periods on the CMS 64 reports submitted in
the year ended June 30, 2023.  Additionally,
we noted the supervisory review and
analytical procedures performed over the
quarterly CMS-64 reports were not designed
at a sufficient level of precision to
identify that these expenditures had not
been provided by IDHS for reporting on the
CMS-64 report. (Finding 24, pages 88-89)

• DHFS failed to conduct utilization reviews
over Home and Community Based Waiver
Services (HCBS) for five of the nine waivers
contracted out to their vendor during fiscal
year 2023. During our audit procedures and
based on inquiries with DHFS officials, the
vendor contract came to an end on February
28, 2023 and a new contract had not been in
place to cover the remainder of the fiscal
year. As a result, we identified no reviews
performed from March 1, 2023, through the
end of the fiscal year. (Finding 25, pages
90-91)

The material noncompliance noted resulted in
qualified opinions on compliance for the
CHIP and Medicaid Cluster programs.  DHFS
accepted our recommendations.

DEPARTMENT OF COMMERCE AND ECONOMIC
OPPORTUNITY (DCEO)

We noted DCEO, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 22 of the Single Audit Report.
Specifically, we noted the following:

• DCEO did not maintain adequate
documentation to substantiate the amounts
reported on the Low-Income Home Energy
Assistance Program (LIHEAP) Performance Data
Form. (Finding 26, pages 92-93)

• DCEO did not properly review or re-certify
the accuracy of the clearance pattern
specified in the Treasury-State Agreement
(TSA) related to cash draws for the LIHEAP.
During our testwork over cash management
requirements, we noted the clearance pattern
included in the TSA in place for the year
ended June 30, 2023 had not been recertified
since 2016 (more than 5 years since previous
recertification). Additionally, we noted
internal controls have not been established
to ensure clearance patterns are calculated
and recertified in accordance with Treasury
regulations. (Finding 27, pages 94-95)

• DCEO did not perform its cash draws in
accordance with the funding technique
prescribed in the Treasury-State Agreement
(TSA). During our testwork  over 12 cash
draws (totaling $72,635,351) for program
(subrecipient) expenditures of the LIHEAP
program during the year ended June 30, 2023,
we noted the expenditures supporting the
cash draws were not disbursed in accordance
with the timeframe required by the
prescribed funding technique. During our
testing of 25 subrecipient payments
(totaling $32,294,005) we noted federal
funds were requested 1 to 13 days earlier
than permitted by the funding technique.
(Finding 28, pages 96-97)

• DCEO did not follow its established
policies and procedures for monitoring
subrecipients of the LIHEAP. During our
review of the award communication files for
a sample of 35 awards, we noted the Federal
Award Identification Number (FAIN) was not
communicated in the subrecipient award
agreement for two of the subrecipients (with
payments totaling $1,192,330). Upon further
review by the agency, an additional 36
awards (with payments totaling $2,727,317)
did not communicate the FAIN in the
subrecipient award agreement. (Finding 30,
pages 100-101)

• DCEO did not maintain supporting
documentation for key line items or prepare
accurate special reports for the LIHEAP.
(Finding 31, pages 102-103)

The material noncompliance noted resulted in
a qualified opinion on noncompliance for the
LIHEAP Program.  DCEO accepted our
recommendations.

ILLINOIS CRIMINAL JUSTICE INFORMATION
AUTHORITY (ICJIA)

We noted ICJIA, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 19 of the Single Audit report.
Specifically, we noted the following:

• ICJIA did not follow its established
program monitoring policies and procedures
for subrecipients of the Crime Victim
Assistance (CVA) program for fiscal year
2023. Based upon ICJIA’s monitoring
criteria, we noted ICJIA should have
conducted site visits with 9 subrecipients
(with expenditures of $1,542,221) from
shorter term programs and 35 subrecipients
(with expenditures of $41,777,962) from
longer term programs during the year ended
June 30, 2023. During our review of the
subrecipient site visits conducted during
State fiscal year 2023, we noted none of the
9 subrecipients from shorter term programs
were subjected to site visits and 19 of the
35 subrecipients from longer term programs
(with expenditures of $9,561,899 during the
year ended June 30, 2023) were not subjected
to site visits. (Finding 33, pages 107-108)

• ICJIA did not adequately review single
audit reports received from its
subrecipients for the CVA program on a
timely basis. (Finding 34, pages 109-111)

• ICJIA did not follow its established
policies and procedures for monitoring
subrecipients of the CVA program. We noted
21 sub-grantees who received CVA program
funds were designated for high oversight for
which the monitoring policy generally
requires a fiscal audit. Of the 21 high
oversight designated subrecipients, only two
subrecipients had a fiscal audit performed
over their CVA program grants. Agency
personnel indicated additional risk
assessment criteria were considered to
reduce the number of high oversight
subrecipients; however, these additional
criteria are not documented in the fiscal
monitoring policy or risk score
documentation. (Finding 35, pages 112-113)

The material noncompliance noted resulted in
an adverse opinion on noncompliance for the
CVA Program.  ICJIA accepted our
recommendations.

DEPARTMENT OF EMPLOYMENT SECURITY (IDES)

We noted IDES, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 22 of the Single Audit Report.
Specifically, we noted the following:

• IDES failed to follow established policies
when making eligibility determinations for
claimants of the Unemployment Insurance (UI)
program.  IDES utilizes the Illinois
Benefits Information System (IBIS) to
perform and document claimant eligibility
determinations, to process claims for
unemployment insurance benefits, and to
assist IDES in complying with the
requirements of the Illinois UI Act and
rules, policies, and procedures applicable
to employment benefits. Because of the
volume and claims and suspension of
requirements during the pandemic public
health emergency, we noted IDES had disabled
certain edit checks in IBIS to allow claims
to process and failed to re-establish the
edit checks with the conclusion of the
public health emergency provisions.  As a
result, certain ineligible claimants were
identified in our testing. Additionally, we
noted adequate internal controls have not
been established to ensure necessary changes
resulting from the conclusion of the
pandemic related provisions are made to UI
eligibility procedures in a timely manner.
(Finding 38, pages 118-120)

• IDES did not complete the Benefit Accuracy
Measurement (BAM) case file reviews in
accordance with United States Department of
Labor (USDOL) requirements for the
Unemployment Insurance (UI) program. During
our testwork of paid claims, we noted IDES
did not achieve either of the required
percentage of case reviews within the
required timeframes. Specifically, for batch
range 20227-202326, IDES failed to meet the
60-day time lapse standard of 70% complete
as only 60.41% of case reviews were
complete. Additionally, IDES failed to meet
the 90-day time lapse standard of 95%
complete as only 81.22% of case reviews were
complete. We also noted that IDES did not
notify the USDOL of the failed case
completion percentage requirements nor
receive a waiver of the requirements from
the USDOL. Further, we noted IDES has not
established adequate controls to ensure BAM
case file review procedures are completed
within timeframes established by the USDOL.
(Finding 39, pages 121-122)

The material noncompliance noted resulted in
a qualified opinion on compliance for the
Unemployment Insurance program.  IDES
accepted our recommendations.

ILLINOIS STATE BOARD OF EDUCATION (ISBE)

We noted ISBE, as the administering State
agency, did not materially comply with
specific compliance requirements described
on page 22 of the Single Audit Report.

Specifically, we noted ISBE did not
adequately monitor and document program
monitoring procedures performed over
subreceipients of the Twenty-First Century
Community Learning Centers (21st Century)
program.  During the year ended June 30,
2023, ISBE passed through 21st Century
Program funding (totaling $75,983,860) to
139 subrecipients.  We noted ISBE did not
follow its subrecipient monitoring
procedures or conclusions were not retained
or prepared.  In other instances, monitoring
documentation was missing required
checklists, reports, corrective action
plans, or evidence of supervisory review
procedures.  We also noted that ISBE’s
controls for monitoring are not designed at
an appropriate level of precision to ensure
monitoring of subrecipients is completed as
required. (Finding 45, pages 134-136)

The material noncompliance noted resulted in
a qualified opinion on compliance for the
Twenty-First Century Community Learning
Centers Program.  ISBE accepted our
recommendation.

FAILURE TO REPORT SUBAWARD INFORMATION
REQUIRED BY FFATA

IDHS, the Department of Public Health
(IDPH), ICJIA, and Illinois Department of
Transportation (IDOT) (collectively, the
agencies) failed to report information
required by the Federal Funding
Accountability and Transparency Act (FFATA)
for awards granted to subrecipients of
multiple programs.  Additionally, DCEO
failed to maintain updated procedures which
resulted in filing inaccurate FFATA reports.

FFATA requires the State to report certain
identifying information related to awards
made to subrecipients in amounts greater
than or equal to $30,000.  Of the
information required to be reported, the
following key data elements are required to
be audited:

1. Subawardee Name
2. Subawardee DUNS number
3. Amount of subaward
4. Subaward obligation or action date
5. Date of report submission
6. Subaward number
7. Subaward project description
8. Subawardee names and compensation of
highly compensated officers

Failure to identify awards subject to FFATA
and to report subawards in accordance with
FFATA results in noncompliance with federal
requirements.  (Finding 9, pages 50-52;
Finding 29, pages 98-99; Finding 32, pages
104-106; Finding 37, pages 116-117; Finding
43, pages 130-131)

The material noncompliance described above
resulted in qualified opinions on the TANF,
CCDF, SAPT, SSBG, LIHEAP, WIOA, COVID-19 –
Immunization Cooperative Agreements,
COVID-19 – Epidemiology and Laboratory
Capacity for Infectious Diseases, and
Airport Improvement programs.  Additionally,
the material noncompliance described above
resulted in an adverse opinion on the CVA
program.

We recommended the agencies establish
procedures and DCEO update its procedures to
identify awards subject to FFATA reporting
requirements and report required subaward
information in accordance with FFATA.

The agencies and DCEO accepted our
recommendations.

OTHER FINDINGS

The remaining findings pertain to other
noncompliance and internal control matters.
We will follow up on the status of
corrective action on all findings in our
next Statewide Single Audit for the year
ended June 30, 2024.

AUDITORS’ OPINION

The auditors stated the Schedule of
Expenditures of Federal Awards for the State
of Illinois as of and for the year ended
June 30, 2023, is presented fairly in all
material respects.

This single audit was conducted by KPMG 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

FJM:MEG