REPORT DIGEST

ROSELAND COMMUNITY MEDICAL DISTRICT
COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  March 28, 2024

FINDINGS THIS AUDIT: 4

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 4 -- 4
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  0 – 4 -- 4

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 findings described
within the report, we expressed an adverse
opinion on the Roseland Community Medical
District Commission’s (Commission)
compliance with the specified requirements
which comprise a State compliance
examination.  The Codification of Statements
on Standards for Attestation Engagements
(AT-C § 205.74) 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.”

SYNOPSIS

• (2022-001)	The Commission failed to
establish a control environment.
• (2022-003)	The Commission did not
consist of the required number of Commission
members throughout Calendar Year 2021 and
Calendar Year 2022.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ESTABLISH A CONTROL ENVIRONMENT

The Roseland Community Medical District
Commission (Commission) failed to establish
a control environment.

During testing, we noted the following:

• The Commission was unable to provide
complete and proper supporting documentation
for one of one (100%) disbursements during
the examination period, totaling $25.
Therefore, we were unable to determine
whether the disbursement was for the correct
amount, the documentation was complete,
properly approved, and in accordance with
applicable policies.

• The Commission has a memorandum of
understanding in effect with a not-for-
profit corporation.  Related party
transactions between the Commission and the
not-for-profit corporation are not being
accounted for in the Commission’s financial
records.  Further, there is risk of a
conflict of interest as the Interim
Executive Director of the Commission is also
the Executive Director of the not-for-profit
corporation.

• The Commission did not approve a
contractual agreement, totaling $1,575,
entered into and funded on behalf of the
Commission by the not-for-profit corporation
the Commission has a memorandum of
understanding with.

• The Commission failed to revoke bank
signature authority for two Commissioners
who are no longer active. The Commissioners
have been inactive since June 5, 2017, and
June 20, 2022, respectively. As of December
31, 2022, the Commission had not established
bank signature authority for any of its
active Commissioners.

• The Commission failed to maintain a
general ledger, trial balance, or a summary
schedule to account for and log its
transactions internally.

• The Commission’s bank charges a monthly
bank fee. During Calendar Years 2021 and
2022, the Commission paid $176.40 in bank
fees, or $7.35 monthly. The Commission
should consider moving its account to a
different bank that does not charge fees in
order to avoid wasting its limited funding.

• The Commission did not establish policies
and procedures to identify new laws and
regulations or monitor existing laws and
regulations applicable to the Commission.
(Finding 1, pages 10-12)  This finding has
been reported since 2016.

We recommended the Commission take action to
establish a control environment to provide
assurance it complies with the State Records
Act and the Fiscal Control and Internal
Auditing Act.  Further, we recommended the
Commission ensure its accounting records are
prepared, maintained, and reconciled to
adequately support its transactions and
reporting. Lastly, we recommended the
Commission establish policies and procedures
to identify and monitor laws and regulations
applicable to the Commission.

The Commission agreed with the finding and
cited actions it is taking to implement the
recommendations provided, such as working to
establish an Auditing and Finance Committee
to establish policies and procedures and
seeking financial resources to fund
operations.

COMMISSION MEMBER VACANCIES

The Commission did not consist of the
required number of Commission members
throughout Calendar Year 2021 and Calendar
Year 2022.

During testing, we noted the following:

• The Commission consisted of five vacancies
as of December 31, 2022. Of these vacancies,
two vacancies were to be filled by the
Governor of the State of Illinois, two
vacancies were to be filled by the Chairman
(President) of the County Board of Cook
County, and the final vacancy was to be
filled by the Mayor of the City of Chicago.

• Three members serving on the Commission as
of December 31, 2022, were serving expired
appointment terms. Expired terms for these
members ranged from 365 to 2,191 days as of
December 31, 2022. Of those three members,
one was to be appointed by the Governor of
the State of Illinois, and the remaining two
were to be appointed by the Mayor of the
City of Chicago. (Finding 3, pages 16-17)

We recommended the Commission continue to
work with the Governor, Chairman of the
County Board of Cook County, and Mayor of
the City of Chicago to ensure the
Commission’s vacancies are filled timely.

The Commission agreed with the finding and
noted seven new Commission member
appointments have been made subsequent to
the examination period. The Commission
stated it is continuing to work with the
appointing parties to fill all remaining
vacancies.

OTHER FINDINGS

The remaining findings pertain to
noncompliance with the Roseland Community
Medical District Act and a failure to file
statements of economic interests.  We will
review the Commission’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 Commission for the two
years ended December 31, 2022, as required
by the Illinois State Auditing Act. Because
of the effect of the noncompliance described
in Findings 2022-001 through 2022-004, the
accountants stated the Commission did not
comply with the requirements described in
the report.

This State 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

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