REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  January 26, 2023

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 1 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 1 -- 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 the financial audit
of the Illinois Conservation
Foundation (Foundation) as of and for
the year ended June 30, 2022.

SYNOPSIS

• (22-01) The Foundation lacked
adequate controls over review of
internal controls 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) lacked adequate controls
over review of internal controls over
its service providers.

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

• Obtained and reviewed the service
providers’ System and Organization
Controls (SOC) reports.
• Timely obtained and reviewed SOC
reports for subservice providers or
performed alternative procedures to
determine the impact on its internal
control environment.
• Monitored and documented the
operation of the Complementary User
Entity Controls (CUECs) relevant to
its operations.
• Ensured a requirement for an
independent review was included within
the contract between the Foundation
and service providers.
• Developed or implemented procedures
for monitoring the service providers.
• Conducted an analysis to determine
the impact of noted deviations within
the SOC report.
(Finding 1, pages 30-31)

We recommended the Foundation:

• Obtain and review SOC reports or
perform independent reviews of
internal controls associated with
outsourced systems at least annually.
• Either obtain and review SOC reports
for subservice providers or perform
alternative procedures to satisfy the
use of the subservice providers would
not impact the Foundation’s internal
control environment.
• Monitor and document the operation
of the CUECs relevant to the
Foundation's operations.
• Review contracts with service
providers to ensure applicable
requirements over the independent
review of internal controls are
included.
• Develop and implement procedures for
monitoring of service providers.
• Conduct an analysis to determine the
impact of noted deviations within the
SOC reports.

The Foundation agreed with the
recommendation and stated it will do
its best to follow the recommendation.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Foundation as of and
for the year ended June 30, 2022, 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

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