REPORT DIGEST

GENERAL ASSEMBLY RETIREMENT SYSTEM

COMPLIANCE EXAMINATION FOR THE TWO
YEARS ENDED JUNE 30, 2016

Release Date:  May 11, 2017

FINDINGS THIS AUDIT:  3

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

FINDINGS LAST AUDIT: 2

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

This digest covers our Compliance
Examination of the General Assembly
Retirement System for the year ended
June 30, 2016.  A separate Financial
Audit as of and for the year ending
June 30, 2016, was previously released
on January 26, 2017.  In total, this
report contains 3 findings, 1 of which
was also reported in the Financial
Audit.

SYNOPSIS

• (16-2) The General Assembly
Retirement System did not comply with
the Ethics training provisions of the
Illinois Pension Code.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

NONCOMPLIANCE WITH ETHICS TRAINING
REQUIREMENTS

The General Assembly Retirement System
of the State of Illinois (System) did
not comply with the Ethics training
provisions of the Illinois Pension
Code.

During current year examination
testing, auditors noted the System did
not track the ethics training completed
by its Board members and did not submit
the required annual certification of
compliance certifying ethics training
completed by its Board members with the
Department of Insurance. (Finding 2,
page 10)

We recommended the System offer the
Board members the opportunity to
participate in the 8 hours of ethics
training in order to internally process
and track each Board member’s ethics
training requirements and submit the
required annual certification to the
Department of Insurance.

System officials accepted the auditor’s
recommendation and stated that they
would continue to work towards
implementing a future trustee training
program for the Board members.

OTHER FINDINGS

The remaining findings pertain to
noncompliance with the Fiscal Control
and Internal Auditing Act and change
management weaknesses.  We will review
the System’s progress towards the
implementation of our recommendations
in our next State compliance
examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the System for the year
ended June 30, 2016, as required by the
Illinois State Auditing Act.  The
accountants stated the System complied,
in all material respects, with the
requirements described in the report.

This State compliance examination was
conducted by RSM US LLP.

BRUCE L. BULLARD
Division Director

This report is transmitted in
accordance with Section 3-14 of the
Illinois State Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:JAF