REPORT DIGEST

DEPARTMENT OF EMPLOYMENT SECURITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  September 19, 2024

FINDINGS THIS AUDIT: 23

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  3 -- 3 -- 6
Category 2:  4 -- 13 -- 17
Category 3:  0 -- 0 -- 0
TOTAL:  7 -- 16 -- 23

FINDINGS LAST AUDIT: 26

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, 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

INTRODUCTION

This digest covers our State compliance
examination of the Department of Employment
Security (Department) for the two years
ended June 30, 2023. A separate financial
audit of the Unemployment Compensation Trust
Fund as of and for the year ended June 30,
2023, was previously released on August 15,
2024. In total, this report contains 23
findings, 8 of which were also reported in
the financial audit.

SYNOPSIS

• (23-10) The Department did not fully
comply with the requirements of the State’s
Election Code (Code).
• (23-21) The Department did not timely
publish the semi-annual State’s Average
Weekly Wage reports in covered industries
under the Unemployment Insurance Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE ELECTION CODE

The Department of Employment Security
(Department) did not fully comply with the
requirements of the State’s Election Code
(Code).

During testing of the Department’s
compliance with the Code, we noted the
following:

• The Department has not established and
operated a voter registration system capable
of transmitting voters’ registration
information to the State Board of Elections’
portal.
• The Department has not entered into an
agreement with the State Board of Elections
to transmit information required under the
Electronic Registration Information Center
Membership Agreement.
• The Department’s voter registration form
posted on its website did not contain a
space for the person to fill in his or her
e-mail address, if he or she chooses to
provide that information. (Finding 10, pages
24-25)

This finding has been reported since 2017.

We recommended the Department seek funding
necessary to fulfill the requirements of the
Code. In addition, we recommended the
Department enter into an agreement with the
State Board of Elections to deliver the
related required information under the
Electronic Registration Information Center
Membership Agreement, as well as provide a
downloadable version of the voter
registration form on its website which
contains a space for an e-mail address.

The Department accepted our recommendations.

UNTIMELY PUBLISHING OF STATE’S AVERAGE
WEEKLY WAGE

The Department did not timely publish the
semi-annual State’s Average Weekly Wage
reports in covered industries under the
Unemployment Insurance Act.

During our testing, we noted three of four
(75%) semi-annual State’s Average Weekly
Wage reports in Fiscal Years 2022 and 2023
were published on the Department’s website
between 57 and 62 days late. (Finding 21,
page 42)

We recommended the Department implement
policies and procedures to ensure the
State’s Average Weekly Wage reports are
published timely in accordance with the
Workers’ Compensation Act.

The Department accepted our recommendation.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by Department personnel. We
will review the Department’s progress
towards the implementation of our
recommendations in our next State compliance
examination.

AUDITOR’S OPINION

The financial audit report was previously
released. The auditors qualified their
opinion on the statement of revenues,
expenses, and changes in net position and
cash flows of the Unemployment Compensation
Trust Fund of the Department of Employment
Security (Department). Except for this
matter, the auditors stated the financial
statements of the Unemployment Compensation
Trust Fund of the Department as of and for
the year ended June 30, 2023, are fairly
stated in all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the Department of Employment
Security (Department) for the two years
ended June 30, 2023, as required by the
Illinois State Auditing Act. The accountants
qualified their report on State compliance
for Findings 2023-001 through 2023-006.
Except for the noncompliance described in
these findings, the accountants stated the
Department complied, in all material
respects, with the requirements described in
the report.

This State compliance examination was
conducted by RSM US 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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