REPORT DIGEST

DEPARTMENT OF MILITARY AFFAIRS

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2024

Release Date:  July 15, 2025

FINDINGS THIS AUDIT: 16

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  3 -- 5 -- 8
Category 2:  1 -- 7 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  4 -- 12 -- 18

FINDINGS LAST AUDIT: 18

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

• (24-6) The Department of Military Affairs
(Department) did not exercise adequate
internal control over its commodities
inventories.
• (24-7) The Department failed to fully
comply with the Fiscal Control and Internal
Auditing Act and International Standards for
the Professional Practice of Internal
Auditing.
• (24-10) The Department did not follow
State Laws and regulations regarding the
operation of its automobiles.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE INTERNAL CONTROL OVER COMMODITIES

The Department of Military Affairs
(Department) did not exercise adequate
internal control over its commodities
inventories.

The Department used a web-based database for
tracking commodities inventory. The database
allowed Readiness Centers’ (armories)
Managers throughout the State to email
orders to the Storekeeper and the Department
to maintain an items-on-hand count.

During our testing, we noted the Department
performed an inventory count in Fiscal Year
2024 but did not prepare reconciliation to
identify differences with its system
records. On July 30, 2024, the Department
performed another inventory count and noted
differences on six (6%) of 96 commodities
amounting to $1,672.

Due to this condition, we were unable to
conclude whether the Department’s population
records were sufficiently precise and
detailed under the Attestation Standards
promulgated by the American Institute of
Certified Public Accountants (AT-C § 205.36)
to test the Department’s year end
commodities inventories balances. (Finding
6, pages 28-29) This finding has been
reported since 2012.

We recommended the Department implement
procedures to maintain accurate records of
its commodities inventory and reconcile its
inventory records as required.

The Department accepted our recommendation.

NONCOMPLIANCE WITH FISCAL CONTROL AND
INTERNAL AUDITING ACT AND INTERNATIONAL
STANDARDS FOR THE PROFESSIONAL PRACTICE OF
INTERNAL AUDITING

The Department failed to fully comply with
the Fiscal Control and Internal Auditing Act
(Act) and International Standards for the
Professional Practice of Internal Auditing
(internal auditing standards).

A few of the issues we noted during our
review of the Department’s internal audit
activities for Fiscal Years 2023 and 2024
follow:

• The Department did not have a two-year
audit plan for the fiscal year ended June
30, 2024.

•  Audits of the Department’s major system
of internal accounting and administrative
controls were not completed during fiscal
years 2023 and 2024, thus there were no
internal audit reports completed and issued
during the two fiscal years ended June 30,
2024.

• The Chief Internal Auditor did not submit
a written report to the Adjutant General for
FY 2023. For FY 2024, while a written report
was submitted, there is no proof of
submission, and the report did not document
how the audit plan was carried out, the
significant findings, or the extent to which
recommended changes were implemented.
(Finding 7, pages 30-32) This finding has
been reported since 2012.

We recommended the Department implement
controls and develop policies and procedures
to ensure compliance with the Act and
internal auditing standards.

The Department accepted our recommendation.

NONCOMPLIANCE WITH VEHICLE REQUIREMENTS

The Department did not follow State laws and
regulations regarding the operation of its
automobiles.

During testing of vehicle maintenance
records for eight vehicles, we noted two
(25%) vehicles did not receive adequate tire
rotations during the fiscal years tested. In
addition, four (50%) vehicles did not
receive a timely oil change. (Finding 10,
page 37) This finding has been reported
since 2020.

We recommended the Department strengthen its
internal controls to ensure compliance with
State law and regulations applicable to the
operation of its automobiles.

The Department accepted our recommendation.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the Department.  We will
review the Department’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 Department of Military
Affairs for the two years ended June 30,
2024, as required by the Illinois State
Auditing Act.  The accountants qualified
their report on State compliance for Finding
2024-001 through 2024-008.  Except for the
noncompliance described in these findings,
the accountants stated the Department
complied, in all material respects, with the
requirements described in the report.

This State compliance examination was
conducted by Roth & Co., 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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