REPORT DIGEST

ENVIRONMENTAL PROTECTION AGENCY - WATER
REVOLVING FUND

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2023

Release Date:  March 7, 2024

FINDINGS THIS AUDIT: 1

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

FINDINGS LAST AUDIT:  1

This digest covers the Agency’s financial
audit as of and for the year ended June 30,
2023.  Our next engagement will include a
State Compliance Examination of the entire
Agency for the two years ending June 30,
2024.

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

SYNOPSIS

• (23-01) The Agency did not take sufficient
measures to ensure all census data submitted
to its pension and other postemployment
benefits plans was complete and accurate.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER CENSUS
DATA

The Agency did not take sufficient measures
to ensure all census data submitted to its
pension and other postemployment benefits
(OPEB) plans was complete and accurate for
the Water Revolving Fund (Fund).

The Agency did not maintain sufficient
documentation that a complete reconciliation
was properly performed for census data used
to calculate pension and other post-
employment benefit balances.  Although the
Agency performed a reconciliation of its
census data, they did not take or document
sufficient measures to ensure 100% of data
in the base year was checked for
completeness and accuracy. (Finding 1, pages
50-52).  This finding was first reported in
2020.

We recommended the Agency ensure
reconciliation of its active members’ census
data from its underlying records and source
documents to a report of the census data
submitted to each plan’s actuary is properly
completed and accurate.  We further
recommended the Agency evaluate the census
data to identify any instances where data
discrepancies exist and work with SERS to
correct all such errors in the full base
year reconciliation of Agency and SERS
records. We also recommended the Agency
maintain sufficient documentation of the
reconciliation performed, including the
methodology used, data traced, exceptions
identified, and conclusions reached.

Agency officials agreed and stated the
census reconciliation of employee data was
performed screen by screen along with
personnel (paper) file documents. Officials
also stated the State Records Act
requirements are encompassed in the
employees’ system record and HR file, which
have been retained in accordance with the
Records Act.

In an Auditor’s Comment, we noted the Agency
took no new measures during Fiscal Year 2023
to address this prior finding. Although the
Agency did maintain employee records in
their system and personnel files, they did
not maintain or provide documentation
sufficient to substantiate that 100% of the
base year census data was reconciled and
traced to source documents to ensure
accuracy and completeness.

We will review the Agency’s progress towards
the implementation of our recommendations in
our next financial audit.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Agency’s Water Revolving Fund as of
and for the year ended June 30, 2023 are
fairly stated in all material respects.

This financial audit 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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