REPORT DIGEST

OFFICE OF THE TREASURER - NONFISCAL
OFFICER RESPONSIBILITIES

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2015

Release Date:  March 17, 2016

FINDINGS THIS AUDIT:  3

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

FINDINGS LAST AUDIT: 3

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
• (15-3) The Office of the Treasurer
failed to exercise adequate control over
unclaimed property inventory, receipts and
claims.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER UNCLAIMED PROPERTY NEED
IMPROVEMENT

The Office of the Treasurer (Office) did
not exercise adequate control over
unclaimed property (UP) inventory,
receipts, and claims.

During our examination, the following are
some of the deficiencies we noted
pertaining to unclaimed property:
• 91 checks, cash or coins from investment
dividends and the recovery of unclaimed
property amounting to $1,530,712.39 were
not deposited timely (ranging from 1 to 17
days late) into the Treasurer’s Clearing
Account.
• 39 “held-for-appraisal” safekeeping
items amounting to $17.99, were not
deposited timely (ranging from 130 to
5,258 days late) into the Treasurer’s
Clearing Account.
• Thirteen of 68 (19%) claims tested were
not dropped in a timely manner, ranging
from 123 to 195 days past the last
correspondence with the claimant.

During the current year examination we
noted from our sample testing pertaining
to the prior engagement finding that:
• The Office published official notices of
unclaimed property for firearms timely in
a newspaper for general circulation;
• Firearms were remitted to the State
Police in accordance with State statute
and internal policy;
• The Office advertised sales of abandoned
property at least three weeks in advance
of the sale; and
• The Office followed its policies and
procedures pertaining to reserve values at
auction. (Finding 3, pages 12-13) This
finding was first reported in 2011.

We recommended the Office enhance its
controls over the safeguarding of
unclaimed property to ensure policies and
procedures are followed. Further, the
Office should improve controls over
deposits to ensure they are made on a
timely basis in compliance with the Act.

Office officials accepted our
recommendation and indicated they must
confirm that mutual fund sales were
processed accurately before they can
deposit the sales proceeds and are seeking
administrative relief from the required
timeframe for making these types of
deposits. Further, they indicated they are
addressing the other issues noted in the
finding. (For previous Treasurer’s
response, see Digest Footnote #1)

OTHER FINDINGS

The remaining findings are reportedly
being given attention by the Office of the
Treasurer. We will review the Office of
the Treasurer’s progress towards the
implementation of our recommendations in
our next engagement.

ACCOUNTANT’S OPINION

Our special assistant auditors conducted a
compliance examination of the Treasurer’s
Nonfiscal Officer Responsibilities, for
the two years ended June 30, 2015, as
required by the Illinois State Auditing
Act. The accountant’s stated the Office of
the Treasurer complied, in all material
respects, with the requirements described
in the report.

FRANK J. MAUTINO
Auditor General

FJM:JAF

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
compliance examination were RSM US LLP.

DIGEST FOOTNOTES

#1 - INADEQUATE CONTROLS OVER UNCLAIMED
PROPERTY
The Treasurer agrees with the finding and
recommendation. The Office will enhance
its controls over the safeguarding of
unclaimed property by:
• Publishing official notices of unclaimed
property in a newspaper of general
circulation;
• Transferring unclaimed firearms to the
State Police in accordance with statute
and internal policy, per the Treasurer’s
directive, but not to exceed 15 years
after receipt;
• Advertising sales of abandoned property
at least three weeks in advance of the
sale; and
• Following policies and procedures
pertaining to reserve values at auctions.