REPORT DIGEST

CAPITAL DEVELOPMENT BOARD

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2024

Release Date:  March 4, 2025

FINDINGS THIS AUDIT: 8

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 8 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 8 -- 8

FINDINGS LAST AUDIT: 11

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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

This digest covers the Capital Development
Board’s (Board) State compliance examination
for the two years ended June 30, 2024.  A
separate digest covering the Board’s
financial audit as of and for the year ended
June 30, 2024 was previously released on
January 23, 2025.  In total, this report
contains eight findings, none of which were
reported within the Board’s financial audit.

SYNOPSIS

• (24-2) The Board did not properly complete
or perform employee performance evaluations
in a timely manner.

• (24-4) The Board did not timely submit its
vouchers for payment to the Comptroller’s
Office and did not approve all interest due
to vendors during the examination period.
Additionally, the Board did not timely
submit receipts for deposit into the State’s
treasury.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WEAKNESSES IN PERFORMANCE OF EMPLOYEE
EVALUATIONS

The Capital Development Board (Board) did
not properly complete or perform employee
performance evaluations in a timely manner.

During our testing of the performance
evaluations of 15 employees, we noted
evaluations were not performed on a timely
basis for two (13%) employees (3 instances).
The evaluations were performed between 96
and 187 days late. In addition, we noted
evaluations were not performed for seven
(47%) employees tested (12 instances).
(Finding 2, pages 13-14).  This finding has
been reported since 2006.

We recommended the Board review the annual
evaluation process and ensure timely
completion of annual performance evaluations
for all employees. We further recommended
immediate supervisors be held responsible
for completing these on a timely basis.

The Board accepted the recommendation and
stated immediate supervisors have been made
aware of the consequences for not completing
these on a timely basis.

VOUCHER AND RECEIPT PROCESSING WEAKNESSES

The Board did not timely submit its vouchers
for payment to the Comptroller’s Office and
approve all interest due to vendors during
the examination period. Additionally, the
Board did not timely submit receipts for
deposit into the State’s treasury.

Due to our ability to rely upon the
processing integrity of the Enterprise
Resource Planning System (ERP) operated by
the Department of Innovation and Technology
(DoIT), we were able to limit our voucher
testing at the Board to determine whether
certain key attributes were properly entered
by the Board’s staff into ERP. In order to
determine the operating effectiveness of the
Board’s internal controls related to voucher
processing and subsequent payment of
interest, we selected a sample of key
attributes (attributes) to determine if the
attributes were properly entered into the
State’s ERP System based on supporting
documentation. For vouchers, the attributes
tested were 1) vendor information, 2)
expenditure amount, 3) object(s) of
expenditure, and 4) the later of the receipt
date of the proper bill or the receipt date
of the goods and/or services. For receipts,
the attributes tested were (1) amount, (2)
fund being deposited into, (3) date of
receipt, (4) date deposited, and (5)
Statewide Accounting Management System
(SAMS) Source Code.

We then conducted an analysis of the Board’s
expenditures data for Fiscal Years 2023 and
2024 to determine compliance with the State
Prompt Payment Act (Act) (30 ILCS 540) and
the Illinois Administrative Code (74 Ill.
Admin. Code 900.70) (Code). We noted the
following noncompliance:

• The Board owed six vendors interest,
totaling $2,244 as of June 30, 2024, for
Fiscal Year 2023; however, the Board had not
approved these vouchers for payment to the
vendor.

• The Board did not timely approve of 658 of
7,602 (9%) vouchers processed during Fiscal
Years 2023 and 2024, totaling $115,108,987.
We noted these vouchers were approved
between 1 and 346 days late.

We conducted an analysis of the Board’s
receipt deposits for Fiscal Years 2023 and
2024 to determine compliance with the State
Officers and Employees Money Disposition Act
(30 ILCS 230). We noted the following
noncompliance:

• In Fiscal Year 2023, 16 of 777 (2%)
receipts tested were not deposited timely.
The total dollar amount of untimely receipts
was $1,412,620.

• In Fiscal Year 2024, 11 of 564 (2%)
receipts tested were not deposited timely.
The total dollar amount of untimely receipts
was $361,006. (Finding 4, pages 17-18)

We recommended the Board approve proper
bills within 30 days of receipt, approve
vouchers for payment of interest due to
vendors, and ensure receipts are deposited
timely.

The Board accepted the recommendation and
stated it will make every effort to approve
proper bills within 30 days of receipt. In
addition, the Board stated it will make
every effort to timely review the prompt
payment vouchers that are automatically
generated in ERP to ensure they qualify for
the interest and take proper actions if they
do not. Lastly, the Board stated it will
ensure receipts are deposited timely.

OTHER FINDINGS

The remaining findings pertain to Agency
Workforce Reports, travel, filing of
required reports, access control,
cybersecurity programs and practices, and
disaster recovery planning. We will review
the Board’s progress towards the
implementation of our recommendations in our
next examination.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Board as of and for the year ended
June 30, 2024, are fairly stated in all
material respects.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the Board for the two years
ended June 30, 2024, as required by the
Illinois State Auditing Act.  The
accountants stated the Board complied, in
all material respects, with the requirements
described in the report.

This State compliance examination was
conducted by Sikich CPA LLC.

COURTNEY DZIERWA
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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