REPORT DIGEST ILLINOIS CONSERVATION FOUNDATION COMPLIANCE EXAMINATION FOR THE YEAR ENDED JUNE 30, 2019 Release Date: February 11, 2020 FINDINGS THIS AUDIT: 5 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 1 -- 0 -- 1 Category 2: 3 -- 1 -- 4 Category 3: 0 -- 0 -- 0 TOTAL: 4 -- 1 -- 5 FINDINGS LAST AUDIT: 2 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 INTRODUCTION This digest covers our compliance examination of the Illinois Conservation Foundation (Foundation) for the year ended June 30, 2019. A separate financial audit as of and for the year ending June 30, 2019 will be released under a separate cover. In total, this report contains five findings, two of which were reported in the Financial Audit. SYNOPSIS • (19-3) The Foundation did not have adequate planning and monitoring procedures. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE PLANNING AND MONITORING PROGRAM The Foundation did not have adequate planning and monitoring procedures. During testing, we noted the following: • The Foundation had not established procedures and processes for program monitoring, key measurement criteria, or performance measures to assess progress toward objectives. Further, the Foundation did not have a budgeting process to assist in the evaluation of its progress towards its objectives and assign priorities and resources. • The Foundation’s current policies and procedures were last updated in 1995 and have not been updated after this date to reflect changes of current procedures and practices. • The Foundation’s Board of Directors (Board) is currently composed of 12 instead of 13 members as required by the Illinois Conservation Act. (Finding 3, pages 18-19) We recommended management establish and implement a planning and monitoring program of its activities and measurement criteria and processes to determine progress towards its objectives. In addition, we recommended management updates its policies and procedures to reflect current practices and continue its efforts to fill the vacancy in the Board. The Foundation agreed with the auditor’s recommendation. OTHER FINDINGS The remaining findings pertain to noncompliance with training standards and employee timesheets not submitted. We will review the Foundation’s progress towards the implementation of our recommendations in our next compliance examination. AUDITOR’S OPINION The financial audit report was released under a separate cover. The auditors stated the financial statements of the Foundation as of and for the year ended June 30, 2019, are fairly stated in all material respects. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Foundation for the year ended June 30, 2019, as required by the Illinois State Auditing Act. The accountants qualified their report on State compliance for Finding 2019-001. Except for the noncompliance described in this finding, the accountants stated the Foundation complied, in all material respects, with the requirements described in the report. This compliance examination was conducted by E.C. Ortiz & 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 FJM:JMR