REPORT DIGEST

ILLINOIS STATE BOARD OF INVESTMENT

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  March 17, 2020

FINDINGS THIS AUDIT:  3

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  3 -- 0 -- 3
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 0 -- 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 Illinois State Board of Investment
(Board or ISBI) for the year ended June 30,
2019.  A separate Financial Audit as of and
for the year ending June 30, 2019 was
previously released on December 19, 2019.  In
total, this report contains three findings,
none of which were reported in the Financial
Audit.

SYNOPSIS

• (19-02) The Board did not properly complete
the Employment Eligibility Verification Form
I-9 for its employees during the fiscal year
ended June 30, 2019.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS


INCOMPLETE PREPARATION OF EMPLOYMENT
ELIGIBILITY VERIFICATION FORM I-9’S

The Illinois State Board of Investment (ISBI)
did not properly complete the Employment
Eligibility Verification Form I-9 for its
employees during the fiscal year ended June
30, 2019.

During our testwork over 13 employee files, we
noted eight employees whose Form I-9 were not
properly completed.  Specifically, we
identified the following:

• For two ISBI employees, there was no
documentation of a completed Form I-9.
• For two ISBI employees, Section 1 of Form
I-9 was not completed by the employee on or
before his/her first date of employment.
Delays in completing the form were 1 to 2 days
after the start of employment.
• For two ISBI employees, ISBI did not
properly complete and sign Section 2 of Form
I-9 to verify employment authorization.  As of
the date of our testing (October 17, 2019)
these forms still have not been signed.
• For two ISBI employees, Section 1 of Form
I-9 was not completed by the employee on or
before his/her first date of employment and
Section 2 of Form I-9 was not completed and
signed by ISBI within 3 business days of the
employee’s hired date.  Delays in completing
Section 1 were 1 and 4 days.  As of the date
of our testing (October  17, 2019), Section 2
for one out of the two Form I-9’s still has
not been signed.  Additionally, the delay in
completing Section 2 of Form I-9 for one of
the two forms was 4 days after the employee’s
hired date.  (Finding 2, pages 12-13)

We recommended ISBI establish procedures to
ensure Employment Eligibility Verification
Form I-9’s are complete for each employee in
accordance with State regulations.

ISBI officials agreed with the finding and
recommendation.

OTHER FINDINGS

The remaining findings pertain to untimely
preparation of employee timesheets and
inaccurate recording of vouchers.   We will
review ISBI’s progress towards the
implementation of our recommendations in our
next compliance examination.

AUDITOR’S OPINION

The financial audit was previously released.
The auditors stated the financial statements
of the Board as of and for the year ended June
30, 2019 are fairly stated in all material
respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Board for the year ended
June 30, 2019, as required by the Illinois
State Auditing Act.  The accountants stated
the Board complied, in all material respects,
with the requirements described in the report.

This compliance examination was conducted by
KPMG 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:TLK