REPORT DIGEST METRO EAST POLICE DISTRICT COMMISSION COMPLIANCE EXAMINATION FOR THE YEAR ENDED DECEMBER 31, 2019 Release Date: July 16, 2020 FINDINGS THIS AUDIT: 5 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 1 -- 4 -- 5 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 4 -- 5 FINDINGS LAST AUDIT: 4 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 Because of the significance and pervasiveness of the matters described within the findings included within the report, we expressed an ADVERSE OPINION on the Commission’s compliance with the assertions which comprise a State compliance examination. The Codification of Statements on Standards for Attestation Engagements (AT-C § 205.72) states a practitioner “should express an adverse opinion when the practitioner, having obtained sufficient appropriate evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the subject matter.” Additionally, on December 31, 2019, the Metro East Police District Act (Act) (70 ILCS 1750) was repealed by operation of law (70 ILCS 1750/20). As a result, the Commission was abolished. SYNOPSIS • (19-05) The Commission did not properly plan for or cease its activities. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS IMPROPER CESSATION OF ACTIVITIES The Metro East Police District Commission (Commission) did not properly plan for or cease its activities. During testing, we noted the following: • The Commission had a remaining cash balance of $4,463 within the Metro East Police District Fund held by the Illinois Finance Authority and the Commission’s local bank account had a cash balance of $4 as of December 31, 2019. The Commission did not determine an appropriate disposition of these moneys or seek a legislative remedy from the General Assembly. Further, it is not clear who is currently responsible for holding the public funds within the Commission’s local bank account. While outstanding fines collected by the St. Clair County Clerk arising from the additional penalties imposed by the Counties Code (also repealed by operation of law on December 31, 2019, previously codified at 55 ILCS 5/5-1101.5) for certain offenses committed within the Metro East Police District are now remitted to St. Clair County’s General Fund in accordance with the Clerks of Courts Act (705 ILCS 105/27.3b-1(b)), cash collections already disbursed to the Commission and deposited within its accounts lacks an apparent disposition under State law. • As each Commission member’s term of office concluded by operation of law on December 31, 2019, it is unclear who serves as the official custodian of its records and performing destruction procedures after it is deemed the records are no longer necessary for current business or retain administrative, legal, or fiscal value to justify retention. The Local Records Act (50 ILCS 205/10) requires retention of records until the Local Records Commission determines the records have no historical, legal, or administrative value and the Local Records Commission authorizes the destruction of the records. The Local Records Act does not appear to provide a process for handling the records of a closed local government. (Finding 5, pages 21-22). We recommended the Commission’s former officials notify the Governor, the General Assembly, and the Illinois Finance Authority of the remaining balance of funds and work with these entities to determine an appropriate transfer of responsibilities and disposition of the remaining cash. Further, we recommended the Commission’s former officials notify the Secretary of State and the Local Records Commission of its closure and seek an appropriate disposition for its records. The Commission declined to provide a response to the finding. OTHER FINDINGS The remaining findings pertain to the Commission’s failure to assume administrative functions for external law enforcement grants from police departments within the Metro East Police District, inadequate control over the Commission’s finances, inadequate monitoring of the Illinois Finance Authority, and procedural deficiencies. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of theCommission for the year ended December 31, 2019, as required by the Illinois State Auditing Act and the Metro East Police District Act. Because of the effect of the noncompliance described in Finding 2019-001 through Finding 2019-005, the accountants stated the Commission did not comply 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:cgc