REPORT DIGEST

EXECUTIVE ETHICS COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  Aug. 15, 2024

FINDINGS THIS AUDIT: 6

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  2 -- 3 -- 5
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 4 -- 6

FINDINGS LAST AUDIT: 6

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

SYNOPSIS

• (23-01) The Executive Ethics Commission’s
(Commission) internal controls over its
voucher processing function were not
operating effectively during the examination
period.
• (23-02) The Commission did not maintain
adequate controls over personal services.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

VOUCHER PROCESSING INTERNAL CONTROLS NOT
OPERATING EFFECTIVELY

The Executive Ethics Commission’s
(Commission) internal controls over its
voucher processing function were not
operating effectively during the examination
period.

Due to our ability to rely upon the
processing integrity of the Enterprise
Resource Planning System (ERP) operated by
the Department of Innovation and Technology
(DoIT), we were
able to limit our voucher testing at the
Commission to determine whether certain key
attributes were properly entered by the
Commission’s staff into the ERP. In order to
determine the operating effectiveness of the
Commission’s internal controls related to
voucher processing and subsequent payment of
interest, we selected a sample of key
attributes (attributes) to determine if the
attributes were properly entered into the
State’s ERP System based on supporting
documentation. The attributes tested were 1)
vendor information, 2) expenditure amount,
3) object(s) of expenditure, and 4) the
later of the receipt date of the proper bill
or the receipt date of the goods and/or
services.

Our testing noted 12 of 140 (9%) attributes
were not properly entered into the ERP
System, specifically for attribute 4
pertaining to proper receipt date.
Therefore, the Commission’s
internal controls over voucher processing
were not operating effectively.

Due to this condition, we qualified our
opinion because we determined the Commission
had not complied, in all material respects,
with applicable laws and regulations,
including the State uniform accounting
system, in its financial and fiscal
operations.

Even given the limitations noted above, we
conducted an analysis of the Commission’s
expenditures data for Fiscal Years 2022 and
2023 to determine compliance with the State
Prompt Payment Act (Act) (30 ILCS 540) and
the Illinois Administrative Code (74 Ill.
Admin. Code 900.70). We noted the following
noncompliance:

• The Commission did not timely approve 147
of 326 (45%) vouchers processed during
Fiscal Year 2022, totaling $990,993. We
noted these vouchers were approved between 1
and 164 days late.

• The Commission did not timely approve 46
of 353 (13%) voucher processed during Fiscal
Year 2023, totaling $1,069,478. We noted
these vouchers were approved between 1 and
148 days late.

During our testing of 36 travel vouchers, we
noted the following:

• One (3%) travel voucher tested, amounting
to $2,239, did not have the proper object
code.

• Three (8%) travel vouchers tested,
totaling $5,135, did not document the pre-
approval for out-of-state travels.

• Four (11%) travel vouchers tested,
totaling $3,250, were not submitted within
60 days after the last day of travel.
(Finding 1, pages 10-12)

We recommended the Commission design and
maintain internal controls to provide
assurance its data entry of key attributes
into ERP is complete and accurate and
approve proper bills within 30 days of
receipt. Further, we recommended the
Commission use the proper object code,
obtain pre-approval for out-of-state
travels, and submit the travel voucher
within 60 days after the last day of travel.

The Commission accepted the recommendations
and stated they have implemented additional
procedural checks in its fiscal and travel
approval processes to ensure full compliance
in future cycles.

INADEQUATE CONTROL OVER PERSONAL SERVICES

The Commission did not maintain adequate
controls over personal services.

• During testing of the Commission’s Fiscal
Year 2021 and Fiscal Year 2022 Agency
Workforce Reports (Reports), we noted the
following:

—  Fiscal Year 2021 Report, 9 out of 16
(56%) employee category groups, the data and
statistical percentages presented did not
agree to the supporting documentation.

—  Fiscal Year 2022 Report, 9 out of 16
(56%) employee category groups, the data and
statistical percentages presented did not
agree to the supporting documentation.

—  Fiscal Year 2019 and Fiscal Year 2020
Reports, cited as inaccurate during the
prior examination, were not corrected and
submitted with the Secretary of State and
the Governor within 30 days after the
release of the Commission’s compliance
report by the Auditor General.

• During our review of personal files, we
noted evaluations were not performed for 3
of 19 (16%) employees selected for testing.

• During our testing of leave of absence, we
noted that for 1 of 8 (13%) employees
tested, the Commission processed employee’s
unpaid leave of absence as paid leave for
$1,947 and there was no subsequent
adjustment for the transaction.

• During our testing of census data
reconciliation, we noted that the Commission
provided the certification of
reconciliation, however, the Commission did
not
adequately maintain the data and document
the process of reconciliation. Upon request
of the auditor, the Commission reached out
to the State Employees’
Retirement System of Illinois (System)
representative for the data set. (Finding 2,
pages 13-15)

We recommended the Commission timely submit
corrected Agency Workforce Reports with the
Secretary of State and the Governor and
complete performance evaluations timely.
Further, we recommended the Commission
adjust the payment processed for the
employee’s unpaid leave of absence and
document and maintain the reconciliation
procedures over the census data.

The Commission accepted the recommendations
and stated they have implemented additional
procedures to ensure full compliance in
future audit cycles.

OTHER FINDINGS

The remaining findings pertain to
noncompliance with Identity Protection Act;
lack of adequate independent internal
control review over service providers; and
weaknesses in cybersecurity and disaster
recovery planning and testing. We will
review the Commission’s progress towards the
implementation of our recommendations in our
next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the Commission 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 Finding 2023-001.  Except for
the noncompliance described in this finding,
the accountants stated the Commission
complied, in all material respects, with the
requirements described in the report.

This State compliance examination was
conducted by Adelfia LLC.

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

FJM:[sjs]