REPORT DIGEST ILLINOIS COMMUNITY COLLEGE BOARD COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2023 Release Date: July 16, 2024 FINDINGS THIS AUDIT: 12 CATEGORY: NEW -- REPEAT – TOTAL Category 1: 3 -- 0 -- 3 Category 2: 8 -- 0 -- 8 Category 3: 1 -- 0 -- 1 TOTAL: 12 -- 0 -- 12 FINDINGS LAST AUDIT: 1 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, 400 West Monroe, Suite 306, Springfield, IL 62704-9849 (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 • (23-1) The Illinois Community College Board (Board) did not exercise adequate controls over initiating and monitoring grant agreements. • (23-2) The Board’s internal controls over its voucher processing function were not operating effectively during the examination period. • (23-3) The Board did not maintain adequate controls over monthly reconciliations. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER INITIATING AND MONITORING GRANTS The Board did not exercise adequate controls over initiating and monitoring grant agreements. We tested 60 grant agreements from 24 of the Board’s grant programs active during Fiscal Years 2022 and 2023 and noted the following weaknesses: • For 53 of 60 (88%) grant agreements tested, the agreements were signed between two and 446 days late. • For two of 24 (8%) grant programs tested, the reports did not contain the certification required by the grant agreement. • For 20 of 24 (83%) grant programs tested, the grantees either did not provide required documentation to the Board, required reporting did not meet the timeframes and/or specifications outlined in the grant agreement, or documentation was not retained by the Board to demonstrate the required documentation was received and met all related requirements. (Finding 1, pages 10-16) We recommended the Board implement and enforce internal controls to ensure all reporting requirements are adhered to. We further recommended the Board ensure grant application and budget deadlines and agreement start dates allow sufficient time for approval of grant agreements by all parties prior to the effective date. The Board concurred with the finding and stated the Board is transitioning report and budget monitoring to program compliance staff and will provide additional training. The Board also responded it will ensure future grant agreements are drafted with language authorizing pre-award costs if applicable. VOUCHER PROCESSING INTERNAL CONTROLS NOT OPERATING EFFECTIVELY The Board’s internal controls over its voucher processing function were not operating effectively during the examination period. Our testing noted 10 of 140 (7%) attributes were not properly entered into the ERP System, specifically the proper bill date. Therefore, the Board’s internal controls over voucher processing were not operating effectively. We noted the Board did not timely approve 1,834 of 10,781 (17%) vouchers processed during the examination period, totaling $92,408,471. We noted these late vouchers were approved by the Board between 31 and 424 days late. (Finding 2, pages 17-18). We recommended the Board provide staff training and design and maintain internal controls: • To provide assurance its data entry of key attributes into ERP is complete and accurate; and • To ensure proper bills are approved within 30 days of receipt. The Board concurred with the finding and responded that accounting procedures have been modified and additional staff training provided to ensure entry of correct key attributes in the ERP system and increased frequency of federal draw-downs to improve voucher processing times. INADEQUATE CONTROLS OVER MONTHLY RECONCILIATIONS The Board did not maintain adequate controls over monthly reconciliations. The Board expended over $400 million from 10 funds and collected over $40 million from 7 funds during Fiscal Years 2022 and 2023. During testing of the Board’s monthly reconciliations of their internal records to Office of Comptroller records, we noted: • 28 of 28 (100%) reconciliations to the Obligation Activity Report or the Agency Contract Report were not initialed and dated. As a result, we were unable to determine whether the reconciliation was timely performed. • 10 of 24 (42%) reconciliations to the Revenue Status Report (SB04) were not initialed and dated. As a result, we were unable to determine whether the reconciliation was timely performed. • 2 of 24 (8%) reconciliations to the SB04 were not performed in Fiscal Year 2023. • 5 of 24 (21%) reconciliations to the SB04 were performed 25 to 148 days late. • 28 of 28 (100%) reconciliations to the Appropriations Status Report were not initialed and dated. As a result, we were unable to determine whether the reconciliation was timely performed. • 24 of 24 (100%) reconciliations to the Cash Report were not initialed and dated. As a result, we were unable to determine whether the reconciliation was timely performed. (Finding 3, pages 19-20). We recommended the Board allocate resources and implement controls to ensure all required monthly reconciliations are performed, documented, and reviewed timely. The Board concurred with the finding and stated reconciliations have been assigned to a new staff member and training has been provided. Management also responded they worked with the ERP team to implement all reconciliations in the ERP’s Analytic and Reporting platform to ensure reconciliations are reviewed and documented timely. OTHER FINDINGS The remaining findings pertain to reporting requirements, controls over personal services, noncompliance with the Student Parent Data Collection Act, contractual and interagency agreements, enforcement of grant reporting requirements, cybersecurity programs and practices, service providers, contingency planning, and Board member vacancies. We will review the Agency’s progress towards the implementation of our recommendations in our next State compliance examination. ACCOUNTANT’S OPINION The accountants conducted a State compliance examination of the Board for the two years ended June 30, 2023 as required by the Illinois State Auditing Act. The accountants qualified their report on State compliance for Findings 2023-001 through 2023-003. Except for the noncompliance described in these findings, the accountants stated the Board complied, in all material respects, with the requirements described in the report. This State 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 FJM:lkw