REPORT DIGEST

GENERAL ASSEMBLY RETIREMENT SYSTEM

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  April 26, 2018

FINDINGS THIS AUDIT:  2

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

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

INTRODUCTION

This digest covers our Compliance Examination
of the General Assembly Retirement System for
the year ended June 30, 2017.  A separate
Financial Audit as of and for the year ending
June 30, 2017, was previously released on
February 8, 2018.  In total, this report
contains 2 findings, none of which were
reported in the Financial Audit.

SYNOPSIS

• (17-1) The General Assembly Retirement
System of the State of Illinois 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 the 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 was completed by its Board
members with the Department of Insurance.

System officials stated ethics training was
not offered to the System’s Board Members.
The Board members receive training outside of
the System as part of the Board’s duties as
legislators; however, the amount of training
was not specific to their duties as members
of the System’s Board. Further, System
officials stated there are two or three Board
meetings annually and there are scheduling
challenges given the legislative schedule.
(Finding 1, page 10)  This finding has been
repeated since 2015.

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.

The System accepted the auditor’s
recommendation and indicated they will
continue to work with the Trustees of the
Board to schedule and implement required
training in the future.  (For the previous
System response, see Digest Footnote #1.)

OTHER FINDING

The remaining finding pertains to weaknesses
in change management procedures for their
information systems.  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 General Assembly
Retirement System for the year ended June 30,
2017, 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.

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:JAF

DIGEST FOOTNOTE

#1 – NONCOMPLIANCE WITH ETHICS TRAINING
REQUIREMENTS – prior response

2016:	The System accepts the finding.
Management will continue to work towards
implementing a future trustee training
program for the Board members.