REPORT DIGEST STATE BOARD OF ELECTIONS Compliance Examination For the Two Years Ended June 30, 2015 Release Date: January 28, 2016 FINDINGS THIS AUDIT: 3 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 2 -- 1 -- 3 Category 3: 0 -- 0 -- 0 TOTAL: 2 -- 1 -- 3 FINDINGS LAST AUDIT: 5 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 • (15-1) The Board failed to provide required notifications to nominated candidates. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FAILURE TO PROVIDE REQUIRED NOTIFICATIONS TO NOMINATED CANDIDATES The State Board of Elections (Board) did not properly notify candidates of their obligations to file statements of organizations, reports of campaign contributions, and annual reports of campaign contributions and expenditures as required by the Election Code (Code). The Code requires the Board to notify the person from whom a petition for nomination has been filed of the obligation to file statements of organization, reports of campaign contributions, and annual reports of campaign contributions and expenditures under Article 9 of the Code. The Board developed and implemented the sending of the Notice of Obligation Form (D-5) to ensure notifications to candidates was performed. We noted the Board failed to provide 5 of the 40 (13%) candidates tested a copy of the D-5 Form. Further, the Board could not locate and was unable to provide a copy of the D-5 Form for 2 of the 40 (5%) candidates tested. As a result, we were unable to perform test work to verify if the Board notified the two candidates of their obligation to file the required documents. (Finding 1, pages 9-10) We recommended the Board properly notify candidates of the obligation to file statements of organization, reports of campaign contributions, and annual reports of campaign contributions and expenditures under Article 9 of the Code. Further, we recommended the Board maintain documentation in compliance with the State Records Act. Board officials agreed with the finding and stated the Board will strengthen internal controls and procedures to ensure compliance with the Election Code. OTHER FINDINGS The remaining findings pertain to inadequate controls over personal services and inadequate controls over Agency Fee Imposition Reporting. We will review the Board’s progress toward implementation of our recommendations in our next examination. ACCOUNTANT’S OPINION We conducted a compliance examination of the Board for the two years ended June 30, 2015 as required by the Illinois State Auditing Act. The accountants stated the Board complied, in all material respects, with the requirements described in the report. FRANK J. MAUTINO Auditor General FJM:jv AUDITORS ASSIGNED This examination was performed by the Office of the Auditor General’s staff.