REPORT DIGEST

OFFICE OF COMPTROLLER - FISCAL OFFICER
RESPONSIBILITIES

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  March 11, 2025

FINDINGS THIS AUDIT: 6

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 3 -- 3
Category 2:  0 -- 3 -- 3
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 6 -- 6

FINDINGS LAST AUDIT: 6

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 Office of
Comptroller’s (Office) Fiscal Officer
Responsibilities Compliance Examination for
the year ended June 30, 2024. The Office’s
Fiscal Officer Responsibilities Financial
Audit as of and for the year ended June 30,
2024 was previously released on December 19,
2024. In total, this report contains six
findings, one of which was also reported in
the Financial Audit.

SYNOPSIS

• (24-02) The Office did not ensure all
statutorily mandated transfers between State
funds were made within established
timeframes.
• (24-03) The Office had not implemented
adequate controls over its service providers

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LATE PAYMENT OF STATUTORILY MANDATED
TRANSFERS

The Office of Comptroller (Office) did not
ensure all statutorily mandated transfers
between State funds were made within
established timeframes, as required.
 The Office processed transfers from 34 to
 365 days after the mandated transfer date.
 The late transfers outstanding as of and
 paid after June 30, 2024 totaled $448
 million. The Office also made 207 late
 transfers, totaling $539 million, between
 State funds that were made between one and
 30 days after the statutorily mandated
 transfer date. Lastly, we noted 68 late
 transfers, totaling $383 million, which
 were still outstanding as of October 18,
 2024, relating to fiscal year 2024 and
 fiscal year 2023. (Finding 2, pages 12-14)
 This finding was first reported in 2009.

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

Office officials accepted the recommendation
and stated the Office will continue in its
effort to make the required transfers timely
but given all the competing payments from
limited resources in the State Treasury
there will always be some transfers pending
until funds are available, or when needed.
Office officials also stated most GRF
transfers were made by the end of June 30,
2024 and the few pending GRF transfers were
not delayed and the pending non-GRF
transfers, especially those for capital
obligations, will be processed upon
collaboration with the respective State
agencies. Office officials further stated
the Office staff continues to work together
with various State fiscal officers on a
regular ongoing basis to manage the
processing of such transfers throughout the
fiscal year to avoid disruptions in the
delivery of State services or programs.

INADEQUATE CONTROLS OVER SERVICE PROVIDERS

The Office of Comptroller (Office) had not
implemented adequate controls over its
service providers.

We requested the Office’s population of
service providers utilized during the
examination period to determine if the
Office had reviewed the internal controls of
its service providers. In response to our
request, the Office provided a population;
however, the population contained an
inaccuracy. Due to this condition, we were
unable to conclude the Office’s population
records were sufficiently precise and
detailed under the Professional Standards
promulgated by the American Institute of
Certified Public Accountants (AT-C §
205.36).

Despite the limitation noted above, we
selected a sample of service providers for
our detailed testing and noted the Office:

• Did not review the System and Organization
Controls (SOC) reports for three of three
(100%) service providers.

• Did not have a system in place to monitor
performance measures or compliance with the
contract requirements at the service
providers. (Finding 3, pages 15-16) This
finding was first reported in 2022.

 We recommended the Office maintain an
 accurate list of service providers and
 review SOC reports covering the examination
 period. Additionally, we recommended the
 Office monitor the contracted controls at
 its service providers to ensure compliance
 with the contract requirements.

The Office agreed with the recommendations
and stated the Office implemented a process
to maintain an authoritative list of service
providers and ensure complete review of SOC2
reports or industry standard alternatives.
The Office also stated it was in the process
of finalizing a document to include in
future contracts ensuring providers meet
security control requirements.

OTHER FINDINGS

The remaining findings pertain to the
Office’s failure to implement adequate
Information Technology controls, inadequate
controls over remote access, inadequate
disaster recovery planning, and weaknesses
in cybersecurity programs and practices. We
will review the Office’s progress towards
the implementation of our recommendations in
our next compliance examination.

AUDITOR’S OPINION

The financial audit was previously released.
The auditors stated the budgetary basis fund
balances at June 30, 2024, and the revenues
and expenditures for the year then ended
relating to the State of Illinois, Office of
Comptroller - Fiscal Officer
Responsibilities’ Traditional Budgetary
Financial Report, are fairly presented in
all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Office of Comptroller,
Fiscal Officer Responsibilities for the year
ended June 30, 2024, as required by the
Illinois State Auditing Act. The accountants
qualified their report on State compliance
for Findings 2024-001, 2024-002 and
2024-003. Except for the noncompliance
described in these findings, the accountants
stated the Office of Comptroller, Fiscal
Officer Responsibilities, complied in all
material respects with the requirements
described in the report.

This compliance examination was conducted by
Sikich LLP.

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

FJM:vrb