REPORT DIGEST

ILLINOIS EDUCATIONAL LABOR RELATIONS BOARD

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  July 9, 2026

FINDINGS THIS AUDIT: 6

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 5 -- 5
Category 3:  0 -- 1 -- 1
TOTAL:  0 -- 6 -- 6

FINDINGS LAST AUDIT: 8

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

• (25-2) The Board did not have an
adequate segregation of duties over its
accounting and recordkeeping functions.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

The Board did not have an adequate
segregation of duties over its accounting
and recordkeeping functions.

During testing, we noted for payroll and
non-payroll expenditures, the Board’s
Chief Fiscal Officer has the authority to
perform all parts of the transaction
cycle, including:

• Authorization by reviewing and approving
transactions, including having signature
authority for all transactions and direct
access to the Department of Innovation and
Technology’s (DoIT) Central Payroll System
(CPS);
• Custody by maintaining electronic and
physical records and submitting
expenditures for payment to the Illinois
Office of Comptroller (IOC);
• Recordkeeping by preparing the payroll
and any adjustments within CPS for
submission to the IOC, preparing entries,
entering transactions and any adjustments
with DoIT’s Enterprise Resource Planning
System (ERP), and maintaining the Board’s
internal accounting records; and
• Reconciliation by preparing
reconciliations of the IOC’s records to
the Board’s accounting records.

DoIT’s ERP system has a built-in control
requiring authorization by a second
employee to move a non-payroll expenditure
forward in the system. Other than this
control, we did not note any additional
compensating controls to mitigate this
significant control weakness over the
Board’s expenditures, which totaled
$3,628,354 for payroll expenditures and
$467,988 for non-payroll expenditures,
during the examination period. (Finding 2,
Pages 9-10) This finding has been reported
since 2007.

We recommend the Board implement
additional procedures to limit one person
from having the authority to perform
essentially all the functions associated
with payroll and non-payroll expenditure
transactions. Involving other existing
staff in the transaction cycle process
could facilitate an appropriate
segregation of duties without hiring an
assistant fiscal officer or accountant.

The Board accepts the recommendation and
noted the Board has hired an Accountant to
resolve the segregation of duties issues
noted.

OTHER FINDINGS

The remaining findings pertain to the
Board’s weaknesses regarding disaster
recovery planning, voucher processing, and
cyber security programs and practices,
board vacancies, and noncompliance with
personal services.  We will review the
Board’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 Board for
the two years ended June 30, 2025, as
required by the Illinois State Auditing
Act.  The accountants stated the Board
complied, in all material respects, with
the requirements described in the report.

This State compliance examination was
conducted by Borschnack, Pelletier & Co.

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:EJJ