REPORT DIGEST

DEPARTMENT OF CENTRAL MANAGEMENT
SERVICES - UNIVERSITY BENEFITS
SCHEDULES

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  December 14, 2022

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 (Department) 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 Office of
Comptroller also uses these amounts to
determine allocations of special
funding situations for the
universities.


SYNOPSIS

• (21-01)  There were errors in the
data used by the Department to compile
the University Benefits Schedules,
resulting in misstatements of the
estimated cost of health insurance
benefits paid on-behalf of State
Universities.

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, 2022, 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.

During our testing of monthly non-
exempt contribution payments, we
noted:

• One of 16 (6%) non-exempt
contributions tested was understated.
Northeastern Illinois University non-
exempt contributions were understated
by $26,812, which resulted in an
overstatement of estimated exempt
funding of $26,812.

• One of 16 (6%) non-exempt
contributions tested was overstated.
University of Illinois Springfield
non-exempt contributions were
overstated by $588, which resulted in
an understatement of estimated exempt
funding of $588.

The errors noted resulted in a net
understatement of non-exempt
contributions by $26,224 and a net
overstatement of estimated exempt
funding by $26,224. These errors were
determined not to be material to the
UBS; therefore, the Department did not
adjust the UBS. (Finding 1, pages
7-8).  This finding has been reported
since 2020.

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

Department officials agreed with our
recommendation and stated that during
the reporting period, they continued
to have staffing vacancies that
resulted in limited review and
oversight.  Department officials also
stated they continue to develop
processes and procedures to ensure
accurate and reliable data is used in
the preparation of the UBS.
Additionally, Department officials
stated that the Department, in
conjunction with the Department of
Innovation and Technology and a third-
party vendor, is implementing a new
reporting system that will replace the
database system that is currently
used.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of management’s assertions
regarding the University Benefits
Schedules for the year ended June 30,
2022. 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

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