REPORT DIGEST

OFFICE OF THE SECRETARY OF STATE

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2016

Release Date:  January 19, 2017

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 0

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

SYNOPSIS

• (16-01) The Office of the Secretary of
State (Office) did not identify a required
adjustment necessary to ensure the
Office’s audited financial statements were
accurately prepared.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO IDENTIFY FINANCIAL STATEMENT
REPORT ERROR

The Office did not identify a required
adjustment necessary to ensure the
Office’s audited financial statements were
accurately prepared.

A correction was made to increase the
adjustment for deferred outflows for
pensions on the Statement of Net Position
and Governmental Funds Balance Sheet and
to decrease the adjustment for general
government expenditures on the Statement
of Activities and Governmental Revenues,
Expenditures and Changes in Fund Balances.
The Office’s pension contributions
subsequent to the measurement date were
improperly excluded from the deferred
outflow calculation, resulting in an
understatement of the deferred outflow
balance of $8.787 million as of June 30,
2016 and an overstatement of general
government expenditures of $8.787 million
for the year ended June 30, 2016. (Finding
1, pages 62-63)

We recommended the Office implement
internal control procedures to assess the
risk of material misstatements of the
Office’s financial statements and to
identify such misstatements during the
financial statement preparation process.

Office officials agreed with the
recommendation and stated the Office will
review internal control procedures to
ensure accurate financial statements are
prepared, and will implement changes as
necessary in order to asses and mitigate
the risk of material misstatement.

AUDITOR’S OPINION

Our auditors stated the financial
statements of the Office of the Secretary
of State as of June 30, 2016, and for the
year ended, are fairly stated in all
material respects.

FRANK J. MAUTINO
Auditor General

FJM:SDW

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
audit were Kerber, Eck & Braeckel LLP.