REPORT DIGEST

OFFICE OF THE TREASURER – COLLEGE SAVINGS
PROGRAM

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2020

Release Date:  February 17, 2021

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
•  (20-01) The Office had inadequate
internal controls over the College
Savings Program financial statement
preparation and review process.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS RELATED TO
REVIEW OF FINANCIAL STATEMENTS

The Office had inadequate internal
controls over the College Savings Program
financial statement preparation and
review process.

During testing of the Office’s College
Savings Program financial statements and
notes to the financial statements, we
noted the Office:
• Did not properly include two new funds
in Note 2, Investments. The Bright
Directions Interest Rate and Credit Risk
disclosure reported the June 30, 2020
Money Market and Fixed Income Funds as
$2,456,435,244, but the total should have
been reported as $2,730,538,106, an
understatement of $274,102,862.
• Was unable to provide adequate
documentation the Office performed due
diligence procedures on the support
provided by the College Savings Program
Manager in the preparation of the
financial statements and supplementary
information. The Office utilized Excel
spreadsheets prepared by the Program
Manager to develop the financial
reporting package, but did not perform
procedures to verify the spreadsheets
agreed to the underlying support (Finding
1, pages 140-141).

We recommend the Office improve controls
over the College Savings Program
financial reporting process as follows:
• Perform and document due diligence
procedures to verify the accuracy of
underlying financial reporting support
provided by the Program Manager.
• Perform procedures to analyze
underlying financial data, including
investment changes, to ensure amounts are
properly reported.

The Office accepted the recommendation
and stated they will examine the review
and documentation procedures of Program
Manager support used in preparation of
the financial statements for improvement.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Office of the
Treasurer, College Savings Program as of
and for the year ended June 30, 2020, 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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