REPORT DIGEST SUPREME COURT HISTORIC PRESERVATION COMMISSION Compliance Examination For the Two Years Ended June 30, 2015 Release Date: November 19, 2015 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 0 -- 1 -- 1 Category 3: 0 -- 0 -- 0 TOTAL: 0 -- 1 -- 1 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 WILLIAM G. HOLLAND, 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 SYNOPSIS • (15-1) The Commission did not maintain adequate controls over recording and reporting of State property. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER STATE PROPERTY The Commission did not maintain adequate controls over recording and reporting of State property. During our testing, we noted the following: • Errors in the completion of the Agency Report of State Property (C-15 report). Equipment items totaling $1,597, purchased in prior years were not reported in the C-15 report. In addition, an item transferred to CMS surplus, totaling $3,291, was reported under the deletions column instead of the net transfer column of the C-15 report. • Four of 25 (16%) equipment items, totaling $2,952, were physically found in a location different from the location indicated on the property listing. • Three of five (60%) asset additions determined to be transfers from another State agency did not have corresponding costs on the property listing. • Nine of nine (100%) assets transferred to CMS, totaling $5,702, were not properly documented. The Commission did not accurately report the asset’s acquisition cost and date in the CMS Surplus Property Delivery Form. (Finding 1, pages 9-10). This finding has been repeated since 2009. We recommended the Commission strengthen its controls over recording and reporting of State property by reviewing its inventory and recordkeeping practices to ensure compliance with regulatory requirements. Commission management accepted the finding and recommendation and stated they have corrected C-15 reports and improved controls with transfer protocols. (For the previous Commission response, see Digest Footnote #1.) AUDITOR’S OPINION We conducted a compliance examination of the Commission as required by the Illinois State Auditing Act. The auditors stated the Commission complied, in all material respects, with the requirements described in this report. WILLIAM G. HOLLAND Auditor General WGH:sjs SPECIAL ASSISTANT AUDITORS Our Special Assistant Auditors for this examination were E.C. Ortiz & Co., LLC. DIGEST FOOTNOTES #1 - INADEQUATE CONTROLS OVER STATE PROPERTY - Previous Commission Response The Commission agrees with the finding and has taken measures to correct it. The Director of Administration has added the cost of the freight to one asset and has updated the physical location of the nineteen items. The Fiscal Year 2014 first quarter C-15 report includes the non- reported equipment items. With an accurate first C-15 report for Fiscal Year 2014, the Commission expects accurate reports moving forward.