REPORT DIGEST ILLINOIS COUNCIL ON DEVELOPMENTAL DISABILITIES COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2019 Release Date: February 3, 2021 FINDINGS THIS AUDIT: 5 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 1 -- 1 Category 2: 2 -- 1 -- 3 Category 3: 0 -- 1 -- 1 TOTAL: 2 -- 3 -- 5 FINDINGS LAST AUDIT: 3 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 • (19-01) The Council did not timely reconcile its records with monthly reports from the Office of the State Comptroller. • (19-02) The Council did not maintain adequate documentation of and control over its equipment and property during the examination period. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROL OVER RECONCILIATIONS The Illinois Council on Developmental Disabilities (Council) did not timely reconcile its records with monthly reports from the Office of the State Comptroller (Comptroller). During testing, we noted the following: • The Council failed to complete reconciliations of Council records to the following Comptroller reports: — Thirty-two of 32 (100%) Object Expense/ Expenditures By Quarter Report (SA02) reconciliations. — Two of two (100%) Monthly Appropriation Transfer Report (SB03) reconciliations. • Five of 32 (16%) Monthly Appropriation Status Report (SB01) reconciliations were completed 6 to 29 days late. • One of 24 (4%) Monthly Cash Report (SB05) reconciliations was completed 28 days late. • The Council failed to document its monthly reconciliations of its receipts to the Comptroller’s Monthly Revenue Status Report (SB04) for 24 of 24 (100%) months. (Finding 1, pages 11-12) We recommended the Council timely complete all reconciliations to ensure differences are detected and corrected. Council officials agreed with our recommendation. INADEQUATE CONTROL OVER STATE PROPERTY The Council did not maintain adequate documentation of and control over its equipment and property during the examination period. During testing, we noted the following: • Three of six (50%) items selected from property located at the Council, totaling $5,161, were found in different locations than those indicated on the Council’s property listing. • Two of six (33%) items selected from property located at the Council, totaling $1,064, were deemed obsolete. However, the items remained on Council property records, and the Council had not reported the items to the Department of Central Management Services (CMS) for possible disposal through the surplus process. • While inquiring about the above mentioned obsolete equipment, we found the Council had a large number of additional property items awaiting surplus by CMS, which included desktops, monitors, and office furniture, such as chairs, desks, shelves, and file cabinets. The Council provided two listings, at different times, which when combined, accounted for the majority of obsolete equipment items identified (mostly electronics), but did not include items below the inventory threshold (office furniture). Hence, the Council did not have one listing containing all of its obsolete equipment. Furthermore, the items have not been removed from the Council’s property listing nor have the items been reported to the Property Control Division at CMS. The combined listings totaled 22 obsolete items, totaling $27,596. • During the prior examination, the accountants noted the Council had added 15 electronic equipment items to its property listing, even though the items were property of the Department of Innovation and technology (DoIT). This equipment should have been labeled as property of DoIT since DoIT retained ownership of the equipment; however, Council personnel attached Council equipment tags and added the items to the Council’s property listing. During Fiscal Year 2019, the Council removed all items except for one laptop, totaling $934. (Finding 2, pages 13-14) We recommended the Council strengthen its internal controls over recording and reporting its State property and equipment transactions. Further, we recommended the Council ensure any errors or discrepancies identified during their annual inventory are properly investigated, corrected, and resolved. Council officials agreed with our recommendation. OTHER FINDINGS The remaining findings pertain to noncompliance with the Illinois Council on Developmental Disabilities Law, inadequate control over expenditures, and inadequate control over its external reporting. We will review the Council’s progress towards the implementation of our recommendations in our next compliance examination. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Agency for the two years ended June 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 Council complied, in all material respects, with the requirements described in the report. This compliance examination was conducted 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 FJM:SDW