REPORT DIGEST COURT OF CLAIMS COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2021 Release Date: July 6, 2022 FINDINGS THIS AUDIT: 2 CATEGORY: NEW -- REPEAT – TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 1 -- 2 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 1 -- 2 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 SYNOPSIS • (21-01) The Court did not exercise adequate controls over voucher processing. • (21-02) The Court did not maintain adequate controls over its personal services. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER EXPENDITURES The Court of Claims (Court) did not exercise adequate controls over voucher processing. During testing, we noted the following: • Sixty-one of 143 (43%) vouchers tested, totaling $29,331, were approved between 1 and 166 days late. • Two of 8 (25%) travel vouchers tested, totaling $1,168, were submitted to the Court by the traveler for approval 87 and 153 days, respectively, after the last day of travel occurred. (Finding 1, pages 8-9) We recommend the Court timely approve vouchers. In addition, we recommend the Court ensure travel vouchers are submitted timely. The Court declined to provide a response. INADEQUATE CONTROLS OVER PERSONAL SERVICES The Court of Claims (Court) did not maintain adequate controls over its personal services. During testing, we noted the following: • For 1 of 8 (13%) employees tested, the Court withheld the employee’s federal income tax at an incorrect rate. The Employee had filed a 2020 or later version of the Form W-4 with the Court. However, the Court withheld the employee’s federal income tax rate in accordance with the Internal Revenue Service’s (IRS) guidelines for 2019 or earlier versions of the Form W-4. • For 7 of 20 weekly employee attendance time sheets tested, the number of hours reported by two employees did not meet the 35 minimum hours required per week for full-time employees. The Court was unable to provide supporting documentation to account for the underreported time, which ranged between 1 and 31 hours each week. We recommend the Court enhance their review procedures over payroll, including employee withholding. We further recommend the Court improve controls over monitoring and accounting for all time worked by its employees regardless of whether the work is performed in-office or at home. The Court declined to provide a response. ACCOUNTANT’S OPINION The accountants conducted a State compliance examination of the Court for the two years ended June 30, 2021, 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. This State compliance examination was conducted by GW & Associates, P.C. 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:QTK