REPORT DIGEST

DEPARTMENT OF CENTRAL MANAGEMENT
SERVICES -- UNIVERSITY BENEFITS
SCHEDULES

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  December 15, 2021

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: 1

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

INTRODUCTION

The Department of Central Management
Services pays for the group insurance
costs for certain university employees
on behalf of all State-operated
universities in Illinois. At the end
of each fiscal year, the Department
prepares the University Benefits
Schedules that summarize exempt and
non-exempt employees and exempt and
non-exempt funding. These amounts are
utilized in the universities’ fiscal
year financial reporting. The State
Comptroller also uses these amounts to
determine allocations of special
funding situations for the
universities.

SYNOPSIS

• (21-01) The Department used
inaccurate data during the calculation
of the University Benefit Schedules.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INACCURATE DATA USED FOR THE
CALCULATION OF THE UNIVERSITY BENEFITS
SCHEDULES

During our examination of the
University Benefit Schedules (UBS) for
the year ended June 30, 2021, we noted
errors in the data used by the
Department of Central Management
Services (Department), resulting in
misstatements of the estimated cost of
health insurance benefits paid on-
behalf of State Universities.

Errors in the data used included the
following:

• During our testing of non-exempt
contributions, we noted $50,791 in
payments were entered into the
Benefits Retirement System in error
for Western Illinois University (WIU).
Two checks were entered into the
Benefits Retirement System twice,
resulting in a $50,791 overstatement
of non-exempt contributions and
understatement in benefits paid on-
behalf of WIU.

These errors were determined not to be
material to the UBS; therefore, the
Department did not adjust the UBS.

• During our testing of the average
enrolled State Employee Group
Insurance Program employees of the
State universities, we noted the
Department used enrollment data from
January 2020 instead of January 2021
in calculating the total average
employees, resulting in the following
errors:

The Department updated the UBS for
these errors. (Finding 1, pages 7-8)

We recommended the Department ensure
the preparation of the UBS is based on
accurate and reliable data.

The Department agreed with the finding
and recommendation and stated it will
continue to enhance its internal
controls to help ensure UBS is based
on accurate and reliable data.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of management’s assertions
regarding the University Benefits
Schedules for the year ended June 30,
2021. The accountants stated the
Department complied, in all material
respects, with the requirements
described in the report.

This compliance examination was
conducted by Sikich 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

FJM:meg