REPORT DIGEST

ENVIRONMENTAL PROTECTION AGENCY
WATER REVOLVING FUND

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  February 1, 2018

FINDINGS THIS AUDIT:  1

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

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


INTRODUCTION

This digest covers the financial audit of the
Agency’s Water Revolving Fund as of and for
the year ended June 30, 2017.  Our next
engagement will include a State Compliance
Examination of the entire Agency for the two
years ending June 30, 2018.

SYNOPSIS

• (17-1) The Agency had weaknesses in its
preparation of financial statements for the
Water Revolving Fund and its corresponding
reports filed with the Office of the State
Comptroller.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENT PREPARATION WEAKNESSES

The Agency had weaknesses in its preparation
of financial statements for the Water
Revolving Fund and its corresponding reports
filed with the Office of the State
Comptroller.

During testing, we noted the Agency deleted/
transferred capital assets from the Fund,
totaling $405 thousand, when the Agency
transferred from the Central Inventory System
(CIS) to the Systems Applications and
Products (SAP).  As a result, capital assets
and accumulated depreciation were understated
by $405 thousand and $387 thousand,
respectively.  In addition, the current year
depreciation expense was understated by $11
thousand.  (Finding 1, pages 43-44)

We recommended the Agency implement
procedures to ensure capital assets are
recorded in an accurate and complete manner.

Agency officials agreed with the
recommendation.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Agency’s Water Revolving Fund as of
and for the year ended June 30, 2017, are
fairly stated in all material respects.

This financial audit was performed 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

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