REPORT DIGEST COMMISSION ON GOVERNMENT FORECASTING AND ACCOUNTABILITY COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2019 Release Date: April 22, 2020 FINDINGS THIS AUDIT: 2 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 2 -- 0 -- 2 Category 3: 0 -- 0 -- 0 TOTAL: 2 -- 0 -- 2 FINDINGS LAST AUDIT: 0 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 • (19-01) The Commission did not maintain adequate controls over its property listing and related reporting. • (19-02) The Commission did not have an adequate segregation of duties over its accounting and recordkeeping functions for receipts. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROL OVER STATE PROPERTY The Commission did not maintain adequate controls over its property listing and related reporting. During testing, we noted the following: • The Commission failed to remove one item, totaling $113, from its property listing. The item was picked up by the Department of Central Management Services (CMS) on December 5, 2018, but was not removed from the Commission’s property listing as of June 30, 2019. • Five of 6 (83%) deletions tested, totaling $2,890, were not removed from the property listing timely. The assets were picked up by CMS on December 5, 2018, but were not removed from the Commission’s property listing until June 13, 2019. As a result, the Commission’s Form C-15 reports filed for the third and fourth quarters of Fiscal Year 2019 were overstated by $3,003 and $113, respectively. (Finding 1, pages 10-11) We recommended the Commission timely update its property records after changes occur to ensure accurate property reporting. Commission officials accepted our recommendation, noting because the Commission had recently relocated and acquired the former LRU via an agency merger (per PA 100-1148), the Commission was delayed in performing such deletions while determining how to best merge the property control systems of two agencies. INADEQUATE SEGREGATION OF DUTIES The Commission did not have an adequate segregation of duties over its accounting and recordkeeping functions for receipts. During testing of receipts, we noted the Commission’s Fiscal Officer had the authority to perform all parts of the transaction cycle, including: • Authorization by reviewing and approving transactions, including both depositing funds into the State Treasury’s clearing accounts and preparing Receipt Deposit Transmittals or Expenditure Adjustment Transmittals; • Custody by handling and depositing physical checks and money orders and maintaining electronic and physical records; • Recordkeeping by preparing entries and maintaining the Commission’s internal accounting records; and, • Reconciliation by preparing reconciliations to the State Comptroller’s records to verify each transaction’s validity, proper authorization, and entry into the Commission’s accounting records. We identified the Executive Director and/or Deputy Director’s review of transactions and reconciliations as compensating controls. However, the authority or ability for one person to perform all functions represents a significant control weakness. The Commission processed receipts totaling $5,210 during Fiscal Year 2019 and no receipts during Fiscal Year 2018. (Finding 2, pages 12-13) We recommended the Commission establish a proper segregation of duties over its receipts. Commission officials accepted our recommendation and described corrective action taken to achieve a proper segregation of duties. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Commission for the two years ended June 30, 2019, as required by the Illinois State Auditing Act. The accountants stated the Commission complied, in all material respects, with the requirements described in the report. This compliance examination was conducted by the Office of the Auditor General’s staff. 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 FJM:cmd