REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  December 29, 2021

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  1 -- 0 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

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

INTRODUCTION

This digest covers our financial audit
of the Illinois Conservation
Foundation (Foundation) as of and for
the year ended June 30, 2021. The
Foundation’s compliance examination
covering the year ended June 30, 2021
will be released under a separate
cover.

SYNOPSIS

• (21-01) The Foundation did not
timely obtain or conduct timely
independent internal control reviews
over its service providers.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

LACK OF ADEQUATE CONTROLS OVER THE
REVIEW OF INTERNAL CONTROLS OVER
SERVICE PROVIDERS

The Illinois Conservation Foundation
(Foundation) did not timely obtain or
conduct timely independent internal
controls reviews over its service
providers.

During testing of the Foundation’s
five service providers, we noted the
Foundation had not:

• Timely obtained and reviewed the
five (100%) service providers’ System
and Organization Controls (SOC)
reports and tracked compliance with
service levels agreed to with the
service providers.

• Monitored and documented the
operation of the Complementary User
Entity Controls (CUECs) relevant to
its operations for the five (100%)
service providers.

• Timely obtained and reviewed SOC
reports for subservice providers for
two of two (100%) service providers or
performed alternative procedures to
determine the impact on its internal
control environment. (Finding 1, pages
31-32)

We recommended the Foundation:

• Timely obtain SOC reports or perform
independent reviews of internal
controls associated with outsourced
systems at least annually;
• Monitor and document the operation
of the Complementary User Entity
Controls (CUECs) relevant to the
Foundation's operations; and,
• Review service level agreements with
service providers to ensure applicable
requirements are met.

In addition, we recommended for SOC
reports with one or more subservice
providers, the Foundation should:

• Either obtain and review a SOC
report for each subservice provider or
perform alternative procedures to
satisfy the usage of each subservice
provider would not impact the
Foundation's internal control
environment; and,
• Document its review of the SOC
reports and review all significant
issues with each subservice provider
to ascertain if a corrective action
plan exists and when it will be
implemented, any impacts to the
Foundation, and any compensating
controls.

The Foundation agreed with the
recommendation and stated the
Foundation will attempt to obtain and
review SOC reports as they become
available in the future.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Foundation as of and
for the year ended June 30, 2021, are
fairly stated in all material
respects.

This financial audit was conducted by
Roth & 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:vrb