REPORT DIGEST OFFICE OF THE COMPTROLLER - FISCAL OFFICER RESPONSIBILITIES FINANCIAL AUDIT FOR THE YEAR ENDED JUNE 30, 2020 Release Date: December 22, 2020 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 1 -- 1 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 INTRODUCTION This digest covers the Office of the Comptroller’s Fiscal Officer’s Financial Audit as of and for the year ended June 30, 2020. The Office of the Comptroller Fiscal Officer Compliance Examination as of and for the year ended June 30, 2020 will be issued in a separate report at a later date. SYNOPSIS • (20-1) The Office of the Comptroller did not make all statutorily mandated transfers between State funds within established timeframes, as require 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 443 days after the mandated transfer date. The late transfers outstanding as of and paid after June 30, 2020 totaled $999.4 million. The Office also made 203 late transfers, totaling $1.54 billion, between State funds that were made between one and 30 days after the statutorily mandated transfer date. Lastly, we noted 330 late transfers, totaling $2.209.1 billion, which were still outstanding as of November 13, 2020, relating to fiscal year 2019, fiscal year 2018, and fiscal year 2017. (Finding 1, pages 56-57) 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 on December 10, 2020, the State had a backlog of $7.8 billion in unpaid bills and $1.43 billion owed in fiscal year 2021 for short term borrowing. Unfortunately, due to these continued fiscal constraints, the timely transfer of funds will not be able to be made before prioritized payments and debt payments. AUDITOR’S OPINION The auditors stated the fund balances at June 30, 2020, 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 decreased by $38 million during the fiscal year ended June 30, 2020. At June 30, 2020, the budgetary basis fund balance of the General Funds was a deficit of $5.751 billion. This financial audit 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 FJM:PH