REPORT DIGEST

DEAF AND HARD OF HEARING COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  July 9, 2024

FINDINGS THIS AUDIT: 12

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 4 -- 4
Category 2:  2 -- 6 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 10 -- 12

FINDINGS LAST AUDIT: 11

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

SYNOPSIS

• (23-01) The Deaf and Hard of Hearing
Commission (Commission) did not maintain
adequate documentation and control over its
State property during the examination
period.
• (23-02) The Commission’s internal controls
over its receipt processing function were
not operating effectively during the
examination period.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER STATE PROPERTY

The Commission did not maintain adequate
documentation and control over its State
property during the examination period.

During testing, we noted the Commission did
not maintain detailed supporting
documentation for its quarterly Agency
Report of State Property (Form C-15) filed
with the Office of Comptroller
(Comptroller). As of June 30, 2022 and June
30, 2023, the Commission reported total
equipment of $26,465 and $26,465,
respectively. The property listing provided
by the Commission in response to audit
requests could not be reconciled with the
ending balances reported in the Form C-15
Reports for the fourth quarters ended June
30, 2022 and June 30, 2023 and to the
balances reported in the annual inventory
certifications submitted to the Department
of Central Management Services (CMS).

Due to these conditions, we were unable to
conclude whether the Commission’s population
of property control records were
sufficiently precise and detailed under
Attestation Standards promulgated by the
America Institute of Certified Public
Accountants (AT-C & 205.36) to test the
Commission’s equipment.

We also noted the following:

• One of 25 (4%) equipment items, totaling
$2,606, was not found in the Annual
Inventory Certification submitted to CMS for
Fiscal Year 2022.
• One of 25 (4%) equipment items, totaling
$3,295, was not included in the Form C-15
Report an in the Annual Inventory
Certification submitted to CMS for Fiscal
Year 2023.
• One of 8 (13%) Form C-15 Reports was not
submitted timely. The Form C-15 Report was
submitted one day late.
• Three of 3 (100%) equipment vouchers
tested, totaling $4,680, pertained to
purchases of equipment with individual
prices of $500 or more, were not found on
the Commission’s property control records.
Further, one of these vouchers has an
individual equipment priced at $2,500 or
more but was not reported to CMS.
• Two of 3 (67%) equipment vouchers tested,
totaling $3,102 pertained to purchases of
new furniture of $500 or more, did not have
a New Furniture Affidavit filed with the
State Surplus Administrator. (Finding 1,
pages 9-11)

We recommended the Commission maintain
complete and accurate property records and
ensure timely filing of Form C-15 Reports.
In addition, we recommended the Commission
adopt a policy delineating categories of
equipment that are subject to theft.

The Commission accepted the recommendation
and management stated they will review and
strengthen internal procedures to ensure
adequate controls over its property records,
ensure C-15 Reports are submitted timely,
and implement an internal property control
policy which delineates the categories of
equipment considered subject to theft.

RECEIPT PROCESSING INTERNAL CONTROLS NOT
OPERATING EFFECTIVELY

The Commission’s internal controls over its
receipts processing function were not
operating effectively during the examination
period.

Due to our ability to rely upon the
processing integrity of the Enterprise
Resource Planning (ERP) System operated by
the Department of Innovation and Technology
(DoIT), we were able to limit our receipt
testing at the Commission to determine
whether certain key attributes were properly
entered by the Commission’s staff into the
ERP System. In order to determine the
operating effectiveness of the Commission’s
internal controls related to receipt
processing, we selected a sample of key
attributes (attributes) to determine if the
attributes were properly entered into the
ERP System based on supporting
documentation.  The attributes tested were
(1) amount, (2) fund being deposited into,
(3) date of receipt, (4) date deposited, and
(5) SAMS Source Code.

Our testing noted 28 of 140 (20%) attributes
for receipts testing, specifically the date
of receipt, were not properly entered into
the ERP System.  Therefore, the Commission’s
internal controls over receipt processing
were not operating effectively.

Due to this condition, we qualified our
opinion because we determined the Commission
had not complied, in all material respects,
with applicable laws and regulations,
including the State uniform accounting
system, in its financial and fiscal
operations.

Even given the limitations noted above, we
conducted an analysis of the Commission’s
receipts data for fiscal years 2022 and 2023
to determine compliance with the Act.  We
noted the Commission’s receipts data did not
document the date on which the payment was
received for 113 of 141 (80%) receipts. As
such, we were unable to determine if the
Commission deposited the receipts timely.
(Finding 2, pages 12-13) This finding has
been reported since 2017.

We recommended the Commission design and
maintain internal controls to provide
assurance its data entry of key attributes
into the ERP System is complete and
accurate.

The Commission accepted the recommendation
and management stated they will review and
strengthen its internal controls to ensure
receipt processing functions are operating
effectively and staff will be provided with
additional training as needed.

OTHER FINDINGS

The remaining findings pertain to voucher
processing internal controls not operating
effectively; weaknesses in cybersecurity
programs and practices and disaster recovery
planning; inadequate controls over
reconciliations, personal services, census
data, and travel; statutory noncompliance;
failure to submit internal control
certifications and lack of adequate controls
over the review of internal controls for
service providers. We will review the
Commission’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 Commission for the two
years ended June 30, 2023, as required by
the Illinois State Auditing Act. The
accountants qualified their report on State
compliance for Findings 2023-001 through
2023-004.  Except for the noncompliance
described in these findings, the accountants
stated the Commission complied, in all
material respects, with the requirements
described in the report.

This State compliance examination was
conducted by Roth and Company, 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

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