REPORT DIGEST ILLINOIS COURT OF CLAIMS Compliance Examination For the Two Years Ended June 30, 2015 Release Date: February 18, 2016 FINDINGS THIS AUDIT: 4 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 2 -- 3 Category 3: 1 -- 0 -- 1 TOTAL: 2 -- 2 -- 4 FINDINGS LAST AUDIT: 5 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 SYNOPSIS • (15-1) The Court had inadequate controls over receipts and refunds. • (15-2) The Court failed to maintain controls over personal services. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER RECEIPTS The Court of Claims (Court) did not maintain adequate controls over receipts and refunds. During testing, we noted the following: • Twenty-two of 60 (37%) Treasurer’s drafts, totaling $11,805, were not submitted to the Office of the Comptroller (IOC) in a timely manner. The drafts were submitted between 1 and 111 days late. • Two of 60 (3%) receipts, totaling $70, and one of four (25%) refunds, totaling $91, were not deposited in a timely manner. The receipts were deposited one day late while the refund was deposited 6 days late. • Two of 60 (3%) receipts, totaling $335, did not agree to the Court’s books and records. • One of 60 (2%) receipts, totaling $60, did not have adequate supporting documentation, and therefore, auditors were unable to determine if the deposit and remittance to the IOC was timely. (Finding 1, pages 9-10) This finding was first reported in 2009. We recommended the Court strengthen its controls to ensure Treasurer’s drafts are submitted timely. We also recommended the Court ensure receipts and refunds are deposited timely and records are properly maintained. The Court agreed with the recommendation and stated they will act accordingly. (For the previous Court response, see Digest Footnote #1) INADEQUATE CONTROLS OVER PERSONAL SERVICES The Court of Claims (Court) did not maintain adequate controls over personal services. During testing, we noted the following: • The Court did not perform annual evaluations for nine of nine (100%) part- time employees and did not timely perform annual evaluations for three of three (100%) full-time employees. The full-time employee evaluations were completed 278 days after the evaluation period had ended. • One of nine (11%) part-time employees tested did not submit their activity sheets in a timely manner. The activity sheet was submitted 80 days late. Also, a part-time employee’s activity sheet was dated before the body of work was completed. In addition, two of nine (22%) part-time employees tested did not fully complete their activity sheets with proper information. • The Court’s Personnel Policies and Procedures Manual has not been updated to include the topic of salaries and raises. • Two of nine (22%) part-time employees did not have gross pay supporting documentation included in their personnel files. • The Court’s Agency Workforce Report filed in Fiscal Year 2014 contained mathematical inaccuracies. (Finding 2, pages 11-13) This finding was first reported in 2011. We recommended the Court timely document employee evaluations for both full-time and part-time employees. We also recommended the Court require part-time employees to submit properly completed activity sheets on a timely basis. We further recommended the Court update its policies and procedures to include the topic of salaries and wages and properly document gross pay in personnel files. Finally, we recommended the Court prepare accurate Agency Workforce Reports and file corrected reports with the Office of the Governor and Secretary of State. The Court agreed with the recommendation and stated they will act accordingly. (For the previous Court response, see Digest Footnote #2) OTHER FINDINGS The remaining findings pertain to the Fiscal Control and Internal Auditing Act and not designating the Chief Justice to an Advisory Commission. We will review the Court’s progress toward implementation of our recommendations during our next examination. ACCOUNTANT’S OPINION We conducted a compliance examination of the Court, for the two years ended June 30, 2015, as required by the Illinois State Auditing Act. The accountants stated the Court complied, in all material respects, with the requirements described in the report. FRANK J. MAUTINO Auditor General FJM:lnp AUDITORS ASSIGNED This examination was performed by the Office of the Auditor General’s staff. DIGEST FOOTNOTES #1 - INADEQUATE CONTROLS OVER RECEIPTS - Previous Court Response 2013: The Court agrees with the recommendation and will act accordingly. #2 - INADEQUATE CONTROLS OVER PERSONAL SERVICES - Previous Court Response 2013: The Court believes that several of the components of this finding are due to a differing interpretation of the Court’s policy manual. The Court agrees with the recommendation and will act accordingly.