REPORT DIGEST

DEPARTMENT OF TRANSPORTATION

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  July 8, 2025

FINDINGS THIS AUDIT: 3

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

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

INTRODUCTION

The Department of Transportation
(Department) is responsible for
administrating and supervising the State’s
transportation activities, including
highways, rail, public transportation, and
aeronautics. This digest covers the
Department’s financial audit as of and for
the year ended June 30, 2024. The
Department’s State Compliance Examination
covering the two years ended June 30, 2024,
will be released at a later date.

SYNOPSIS

• (24-1) The Department has not established
adequate internal controls over accurately
recording capital asset activity for
financial reporting purposes.

• (24-2) The Department restated beginning
net position for the General Fund and the
Nonmajor Funds due to the correction of
error in the prior year financial
statements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER CAPITAL ASSETS

The Illinois Department of Transportation
(Department) has not established adequate
internal controls over accurately recording
capital asset activity for financial
reporting purposes.

During our testing, we noted deficiencies
within capital assets:

• The Department did not accurately account
for capital assets. The effect of this
misstatement in the Department’s government-
wide financial statement was an
understatement of infrastructure assets of
$2,600,138,000, an understatement of
accumulated depreciation of $54,593,000, and
an understatement of net position of
$2,545,545,000 as of June 30, 2024.

• During our testing of capital asset
additions, we noted that the Department
capitalized items that should have been
expensed rather than capitalized. The
Department analyzed the additions population
and determined that the error for fiscal
year 2024, net of accumulated depreciation,
was $231,790,000. This misstatement resulted
in an overstatement of infrastructure
assets, net of accumulated depreciation, and
an overstatement of net position of
$231,790,000 in the Department’s government-
wide financial statements. It was also
determined that the same deficiency occurred
in fiscal years 2022 and 2023, leading to a
restatement to decrease the beginning net
position of governmental activities by
$507,787,000.

The Department posted audit adjustments for
both issues to correct its financial
statements as of and for the year ended June
30, 2024. (Finding 1, pages 65-66)

We recommended the Department strengthen
internal controls over capital assets,
including enhanced review procedures for
asset activity and capitalization decisions.

The Department stated it agrees with the
finding.  The Department further stated the
error in the calculation of infrastructure
assets, accumulated depreciation and net
position has been fixed. Additionally, the
Department stated the beginning net position
was adjusted to correct capitalized assets
error and will use the correct report for
capitalizable expenditures for the
infrastructure additions.  Finally, the
Department stated it will continue to
enhance the review processes to avoid such
errors in the future and ensure adherence to
US generally accepted accounting principles
to appropriately record assets and
accumulated depreciation reported in the
Department’s financial statements and
enhance review processes to avoid formula
errors in the future.

INADEQUATE CONTROLS OVER FINANCIAL REPORTING

The Department restated beginning net
position for the General Fund and the
Nonmajor Funds due to the correction of
error in the prior year financial
statements.

During our review of the Department’s
financial statements, we observed the
Department had reclassified the Grade
Crossing Protection Fund (Fund 0019) to be
included within the General Fund. Fund 0019
was incorrectly reported in previous years
as a Nonmajor Special Revenue Fund. In the
current year, the Department discovered this
error and restated beginning fund balance in
order to increase the General Fund’s
beginning fund balance and decrease the
Nonmajor Funds’ beginning fund balance by
$151,247. (Finding 2, page 67)

We recommended the Department review the
SAMS manual annually to ensure funds are
classified properly in the financial
statements.

The Department agreed with the finding and
stated the error in the beginning net
position has been fixed. The Department also
stated it will review annually the Statewide
Accounting Management System (SAMS) that may
impact fund classification listings.

OTHER FINDINGS

The remaining finding pertains to inadequate
control over accounts payable.  We will
review the Department’s progress towards the
implementation of our recommendations in our
next financial audit.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Department as of and for the year
ended June 30, 2024, are fairly stated in
all material respects.

This financial audit was conducted by
CliftonLarsonAllen LLP.

COURTNEY DZIERWA
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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