REPORT DIGEST

DEPARTMENT OF EMPLOYMENT SECURITY

FINANCIAL AUDIT

For the One Year Ended:
June 30, 2001

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2001

Summary of Findings:
Total this audit 1
Total last audit 3
Repeated from last audit 0

Release Date:
March 12, 2002

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State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646
This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

SYNOPSIS

 

 

 

 

 

 

 

 

 

 
    • Computer programming staff can access production data, thus creating a risk that unauthorized access to critical information could occur.

 

 

ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY
FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended June 30, 2001

FINANCIAL INFORMATION (in thousands)

FY 2001

FY 2000

FY 1999

REVENUES (All Funds)
Unemployment taxes
Federal government
Interest and other investment income
Other revenue
Total revenues
EXPENDITURES (All Funds)
Current - Social Assistance
Capital outlays
Total expenditures
OTHER SOURCES (USES) OF FINANCIAL RESOURCES (All Funds)
Appropriations from State resources
Operating transfers in
Operating transfers out
Net other sources of financial resources


$1,075,902
281,426
134,623
2,000
$1,493,951

$1,789,375
1,747
$1,791,122


$8,037
28,308
(23,435)
$12,910
$1,156,161
205,070
135,362
466
$1,497,059

$1,379,192
6,392
$1,385,584


$7,573
24,862
(23,513)
$8,922
$1,157,105
186,230
127,548
185
$1,471,068

$1,330,218
4,259
$1,334,477


$8,074
32,299
(31,232)
$9,141
SELECTED ACCOUNT BALANCES
(All Funds, in thousands)

FY 2001

FY 2000

FY 1999

Cash and cash equivalents
Receivables, net
Fund balance, reserved
Fund balance, unreserved/undesignated

$1,979,633
300,954
2,165,106
35,627

$2,237,522
254,623
2,441,181
49,794

$2,094,703
310,777
2,360,594
44,143
SUPPLEMENTARY INFORMATION

*FY 2001

FY 2000

FY 1999
  • Average Quarterly State Unemployment Rate
  • Average Quarterly National Unemployment Rate
  • Initial Claims – Unemployment Insurance
  • Average Number of Department Employees


5.37

4.56
733,800
2,064


4.35

4.03
599,000
2,050


4.25

4.25
569,700
2,073

AGENCY DIRECTOR

During Audit Period: Linda Renee Baker (July 1999-February 2000)
Gertrude W. Jordan (February 2000-June 2001)
Currently: Gertrude W. Jordan

*Calculation does not include fourth quarter.

 

 

 

 

 

Programming staff can access production data, thus creating a risk that unauthorized access to critical information could occur

FINDING, CONCLUSION, AND RECOMMENDATIONS

MAINFRAME COMPUTER PRODUCTION ACCESS

Managers of computer application development areas have access to the computer production environment. Access is granted through ‘super IDs’ which include access to the specific applications and data for which the area has support responsibility. Managers can elect to share this access with their programmers by sharing their passwords. Granting programmers access to production data creates a greater risk that unauthorized access to Department resources could occur, resulting in critical information being read, modified, or destroyed.

The Department maintains critical applications such as unemployment compensation information. Access to such information should be restricted to help enforce proper segregation of duties and reduce the risk of unauthorized access.

We recommended the Department conduct an independent review of the computer access logs and create a record to explain each instance of access to the production environment by programming staff. (Finding 1, page 9).

Department officials concurred with our recommendation and stated a computer generated report, which captures the access date, time, and activity, will be produced each time a super ID is used by programmers for production. The Production Supervisor will match it against the manual form prepared by the programmer with managerial approval for use of the ID.

AUDITORS’ OPINION

Our auditors stated the Department of Employment Security’s financial statements present fairly, in all material respects, the financial position of the Department as of June 30, 2001.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:ak

SPECIAL ASSISTANT AUDITORS

KPMG LLP were our special assistant auditors for this audit.