REPORT DIGEST

OFFICE OF THE STATE TREASURER –
COLLEGE SAVINGS PROGRAM

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  March 7, 2019

FINDINGS THIS AUDIT:  1

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

• (18-01) The Office’s internal controls
over the preparation and review of the
College Savings Program financial
statements and related notes did not
identify errors.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INTERNAL CONTROL WEAKNESSES IDENTIFIED IN
THE FINANCIAL STATEMENT PROCESS

The Office of the Treasurer’s (Office)
internal controls over the preparation and
review of the College Savings Program
financial statements and related notes did
not identify errors.

During testing of the financial statements
and related notes for the College Savings
Program, the auditors noted, the Office did
not properly report its Bright Direction’s
money market and fixed income funds within
the Interest Rate and Credit Risk
disclosure of Note 2 due to an allocation
error. The total amount disclosed within
the note was understated by $665.851
million. The money market funds were
understated by $48.162 million and the
fixed income funds were understated by
$617.689 million. Total assets on the
Statements of Fiduciary Net Position were
properly reported as $10.790 billion;
however, due to the allocation error noted
above, a reclassification entry of $48.162
million was required to correct the
overstatement of mutual funds reported as
cash and cash equivalents, and the
understatement of money market funds
reported as mutual funds on the Statement
of Fiduciary Net Position, the Note 2
Bright Direction’s fair value disclosure,
the Combining Statements of Fiduciary Net
Position, and the Bright Direction’s
Statements of Net Position by Portfolio.
(Finding 1, page 155)

We recommended the Office evaluate and
improve its internal control over the
financial reporting process to ensure
accurate preparation of financial
statements and the related notes.

The Office accepted the recommendation.

AUDITOR’S OPINION

The auditors stated the Office of the
Treasurer, College Savings Program
financial statements as of and for the year
ended June 30, 2018, are fairly stated in
all material respects.

This financial audit was conducted by Crowe
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

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