REPORT DIGEST

ILLINOIS BOARD OF ADMISSIONS TO THE BAR

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2019

Release Date:  July 16, 2020

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  0 -- 0 -- 0
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 Illinois Board of
Admission to the Bar’s (Board) Compliance
Examination for the two years ended
September 30, 2019. The Board’s Financial
Audit covering the two years ended
September 30, 2019 will be released under
a separate cover.

SYNOPSIS

• (19-01) The Board did not consider new
accounting standards in the preparation
of its draft financial statements and did
not maintain supporting documentation for
the basis used in the allocation of
functional expenses.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FINANCIAL REPORTING

The Board did not consider new accounting
standards in the preparation of its draft
financial statements and did not maintain
supporting documentation for the basis
used in the allocation of functional
expenses.

The Financial Accounting Standards Board
issued Accounting Standards Update (ASU)
2016-14 Presentation of Financial
Statements of Not-for-Profit Entities.
The Board was required to apply this new
standard for its Fiscal Year 2019 and
2018 financial statements.  We noted
management did not consider the effects
of the new accounting standards in the
draft financial statements initially
provided to the auditors.  The Board
subsequently revised the financial
statements to consider the requirements
of ASU 2016-14 after this issue was
brought to their attention by the
auditors.

We also noted the Board allocated certain
expenses among program services and
support services based on assigned or
estimated percentages.  The expenses
allocated totaled $1,875,258 for Fiscal
Year 2019 and $1,766,115 for Fiscal Year
2018.  No supporting documentation was
made available to support the percentages
used for the allocations. (Finding 1,
pages 8-9)

We recommended the Board annually review
new accounting standards issued by the
Financial Accounting Standards Board and
assess the possible impact on its
financial statement to ensure they are
prepared in accordance with the
standards.  We also recommended the Board
review its methodology for the basis used
in the allocation of personnel-related
and non-personnel related expenses and
prepare and maintain supporting
documentation for the allocation.

The Board accepted the audit finding and
stated they understand the existence of
certain auditing standards and going
forward will take corrective measures.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Board for the two
years ended September 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 Agency complied,
in all material respects, with the
requirements described in the report.

This compliance examination was conducted
by Adelfia LLC.

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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