REPORT DIGEST

OFFICE OF THE COMPTROLLER -
FISCAL OFFICER RESPONSIBILITIES

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2020

Release Date:  January 20, 2021

FINDINGS THIS AUDIT:  1

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

This digest covers the Office of the
Comptrollers Fiscal Officer
Responsibilities Compliance Examination
for the year ended June 30, 2020.  The
Office of the Comptroller Fiscal Officer
Responsibilities Financial Audit as of
and for the year ended June 30, 2020 was
previously released on December 22, 2020.

SYNOPSIS

• (20-1) The Office of the Comptroller
did not make all statutorily mandated
transfers between State funds within
established timeframes, as required.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

LATE PAYMENT OF STATUTORILY MANDATED
TRANSFERS

The Office of the Comptroller (Office)
did not make all statutorily mandated
transfers between State funds within
established timeframes, as required.

The Office processed transfers from 31 to
443 days after the mandated transfer
date. The late transfers outstanding as
of and paid after June 30, 2020 totaled
$999.4 million.  The Office also made 203
late transfers, totaling $1.54 billion,
between State funds that were made
between one and 30 days after the
statutorily mandated transfer date.
Lastly, we noted 330 late transfers,
totaling $2.209 billion, which were still
outstanding as of November 13, 2020,
relating to fiscal year 2019, fiscal year
2018, and fiscal year 2017.  (Finding 1,
pages 10-11)  This finding was first
reported in 2009.

We recommended the Office make transfers
within timeframes established by
applicable statute.  While we realize
that the lack of available funds in the
State Treasury requires prioritization
and cash management decisions, we
recommended the Comptroller continue in
its efforts to make transfers in as
timely a manner as possible.

Office officials accepted the
recommendation and stated on December 10,
2020, the State had a backlog of $7.8
billion in unpaid bills and $1.43 billion
owed in fiscal year 2021 for short term
borrowing. Unfortunately, due to these
continued fiscal constraints, the timely
transfer of funds will not be able to be
made before prioritized payments and debt
payments.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Comptroller, Fiscal
Officer Responsibilities for the year
ended June 30, 2020, as required by the
Illinois State Auditing Act.  The
accountants qualified their report on
State compliance for Finding 2020-001.
Except for the noncompliance described in
this finding, the accountants stated the
Comptroller 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:PH