REPORT DIGEST

OFFICE OF THE COMPTROLLER
FISCAL OFFICER RESPONSIBILITIES

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  December 27, 2019

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 1 -- 1

FINDINGS LAST AUDIT: 1

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

• (19-1) The Office of the Comptroller did
not make all statutorily mandated transfers
between State funds within established
timeframes, as required.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LATE PAYMENT OF STATUTORILY MANDATED
TRANSFERS

The Office of the Comptroller (Office) did
not make all statutorily mandated transfers
between State funds within established
timeframes, as required.

The Office processed transfers from 31 to
448 days after the mandated transfer date.
The late transfers outstanding as of and
paid after June 30, 2019 totaled $1.20
billion.  The Office also made 196 late
transfers, totaling $2.60 billion, between
State funds that were made between one and
30 days after the statutorily mandated
transfer date.  Lastly, we noted 301 late
transfers, totaling $1.972 billion, which
were still outstanding as of October 23,
2019, relating to fiscal year 2018, fiscal
year 2017, and fiscal year 2016.  (Finding
1, pages 10-11)  This finding was first
reported in 2009.

We recommended the Office make transfers
within timeframes established by applicable
statute.  While we realize that the lack of
available funds in the State Treasury
requires prioritization and cash management
decisions, we recommended the Comptroller
continue in its efforts to make transfers in
as timely a manner as possible.

Office officials accepted the recommendation
and stated the Office will continue in its
efforts to make the required transfers to
the extent possible given all the competing
payments from limited resources in the state
treasury. Unfortunately, due to continued
fiscal circumstances that are outside of the
control of the Comptroller’s Office, this
repeated finding is outgrowth from the fact
that the state did not have a complete
budget for two years and is still facing a
significant backlog of bills in the
billions. In order to manage under this dire
fiscal situation, the Office must continue
to engage in cash management strategies that
can maximize the use of limited state funds
while also attempting to minimize the
consequences of not having enough resources
to address various pending vouches and
transfers held at the Office. Until the
backlog is significantly reduced, the
timeliness of lower prioritized transfers
will continue to be an audit finding.

AUDITOR’S OPINION

The auditors stated the fund balances at
June 30, 2019, and the revenues and
expenditures for the year then ended
relating to the State of Illinois, Office of
the Comptroller - Fiscal Officer
Responsibilities’ Traditional Budgetary
Financial Report, are fairly presented in
all material respects.  The auditors noted
the financial statements have been prepared
on a comprehensive basis of accounting other
than accounting principles generally
accepted in the United States of America.

The budgetary basis deficit of the General
Funds increased by $15 million during the
fiscal year ended June 30, 2019.   At June
30, 2019, the budgetary basis fund balance
of the General Funds was a deficit of $5.713
billion.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Comptroller, Fiscal
Officer Responsibilities for the year ended
June 30, 2019, as required by the Illinois
State Auditing Act.  The accountants
qualified their report on State compliance
for Finding 2019-001.  Except for the
noncompliance described in this finding, the
accountants stated the Comptroller complied,
in all material respects, with the
requirements described in the report.

This financial audit and compliance
examination were conducted by Clifton Larson
Allen 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

FJM:PH