REPORT DIGEST

DEPARTMENT OF HEALTHCARE AND FAMILY
SERVICES

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  August 18, 2026

FINDINGS THIS AUDIT: 13

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 3 -- 3
Category 2:  2 -- 8 -- 10
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 11 -- 13

FINDINGS LAST AUDIT: 25

State of Illinois, Office of the Auditor
General
CHRISTOPHER B. MEISTER, 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

SYNOPSIS

• (25-02) The Department of Healthcare and
Family Services did not have adequate
internal controls over personal services.
• (25-03) The Department of Healthcare and
Family Services did not have adequate
controls over accounts receivable.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PERSONAL SERVICES

The Department did not have adequate
internal controls over personal services.

During our review of the employee
population, we noted inconsistencies in
reporting active, newly hired, and
inactive/terminated employees. The
Department provided multiple versions of
the populations from different sources,
which were not consistent with each other.

Even given the population limitations
noted above, which hindered our ability to
conclude whether the sample was
representative of the population as a
whole, we selected a sample of 60
employees for testing. During testing, we
noted the following:
• One (2%) employee did not have a
performance evaluation on file for fiscal
year 2024.

• Eight (13%) employees tested did not
have an evaluation of their performance
conducted within four months after the end
of their annual evaluation period. We
noted these employees’ evaluations were
conducted between seven and 326 business
days after the end of the four-month
period to conduct each employee’s
evaluation.

• Two (3%) employees tested did not
complete the required Health Insurance
Portability and Accountability Act (HIPAA)
training within 30 days of employment. We
noted these employees’ trainings were
completed five and nine calendar days
after the end of the 30-day period to
complete initial HIPAA trainings.

• One (2%) employee tested did not have a
signed statement acknowledging their
responsibilities under the Abused and
Neglected Child Reporting Act (ANCRA)
before commencing their employment to
immediately report to the Department of
Children and Family Services (DCFS) a
child known to them in their professional
or official capacities may be an abused or
neglected child.

• The Department does not track the
required mandated reporter testing under
ANCRA. As such, the Department was unable
to provide documentation demonstrating the
employees (100%) in our sample completed
the initial mandated reporter training
and/or the training required at least
every three years. (Finding 2, pages
14-16) This finding has been reported
since 2005.

We recommended the Department strengthen
internal controls to maintain a complete
and accurate population of employees,
ensure staff members receive timely
performance evaluations, properly document
performance evaluations, and ensure staff
members complete all required training
courses. Further, we recommended the
Department strengthen internal controls to
ensure staff complete the required
acknowledgement form documenting their
understanding of their mandated reporting
responsibilities under ANCRA prior to
commencing employment and implement a
tracking process to ensure mandated
reporting training is documented.

The Department accepted our
recommendation.

INADEQUATE CONTROLS OVER ACCOUNTS
RECEIVABLE

The Department did not have adequate
controls over accounts receivable.

During testing of accounts receivable, we
selected a sample of 40 accounts, over 90
days past due, from the Department’s Aging
of Total Gross Receivables report (Form
C-98) as of June 30, 2025. We noted the
following:

• Two (5%) accounts, totaling $738, were
not submitted to either the Comptroller’s
Offset System or sent to be certified as
uncollectible. Additionally, the
Department did not have documentation it
had entered into a deferred payment plan
or demonstrated to the Comptroller’s
satisfaction that referral for offset was
not cost effective. Further, the
Department did not have documentation
demonstrating consideration of certifying
the debts as uncollectible.

• Two (5%) accounts were originally
identified by auditors as not being
properly sent to the Comptroller’s Offset
System or sent to be certified as
uncollectible pursuant to the Illinois
State Collections Act of 1986 or the
Uncollected State Claims Act. Upon
notification, the Department conducted
additional research, and the following
weaknesses were noted:
-- One account, totaling $27,667, had a
payment received; however, the payment was
refunded in error. After our examination
procedures, the Department contacted the
vendor to request payment with more
specific details to appropriately credit
the account.

-- One account, totaling $470, was found
to have duplicate account numbers, each
reflecting the same amount due. The
payments received were applied to one
account, resulting in the duplicate
account still showing a receivable. The
Department posted correcting entries to
accurately reflect the payments received
after notification. (Finding 3, pages
17-18)

We recommended the Department submit past
due accounts receivable to the Comptroller
for placement on the Comptroller’s Offset
System in accordance with the Illinois
State Collection Act of 1986 or maintain
documentation the Department had entered
into a deferred payment plan or
demonstrated to the Comptroller’s
satisfaction that referral for offset was
not cost effective. Additionally, where
applicable, we recommended the Department
certify the accounts as uncollectible when
the Department determines further
collection efforts are not in the best
economic interest of the State in
accordance with the Uncollected State
Claims Act. Further, we recommended the
Department improve its internal controls
over accurate recording of accounts
receivable.

The Department accepted our
recommendation.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by Department
personnel. We will review the Department’s
progress towards the implementation of our
recommendations in our next State
compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Department
for the two years ended June 30, 2025, as
required by the Illinois State Auditing
Act.  The accountants qualified their
report on State compliance for Findings
2025-001 through 2025-003.  Except for the
noncompliance described in these findings,
the accountants stated the Department
complied, in all material respects, with
the requirements described in the report.

This State compliance examination was
conducted by Sikich CPA LLC.

COURTNEY DZIERWA
Deputy Auditor General

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

CHRISTOPHER B. MEISTER
Auditor General

CBM:KJM