REPORT DIGEST

EXECUTIVE ETHICS COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  April 16, 2026

FINDINGS THIS AUDIT: 4

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

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

INTRODUCTION

This digest covers the Illinois Finance
Authority’s (Authority) compliance
examination for the two years ended June
30, 2025. A separate financial audit as of
and for the year ended June 30, 2025, was
previously released on December 16, 2025. A
separate Single Audit for the year ended
June 30, 2025, was previously released on
February 24, 2026. In total, this report
contains 4 findings, one of which was
reported within the Single Audit report.

SYNOPSIS

• (25-2) The Authority did not have an
appropriate full-time internal audit
program in place during the examination
period in accordance with the Fiscal
Control and Internal Auditing Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INTERNAL AUDIT

The Illinois Finance Authority (Authority)
did not have an appropriate full-time
internal audit program in place during the
examination period in accordance with the
Fiscal Control and Internal Auditing Act
(Act).

On June 28, 2017, the Authority entered
into an intergovernmental agreement with
the Department of Central Management
Services (CMS) to act as the internal
auditor. As of April 1, 2019, we noted the
CMS’ Internal Auditor was acting as the
Chief Internal Auditor for nine different
State agencies, each of which was a
designated State agency required to have a
Chief Internal Auditor and to maintain a
full-time program of internal audit under
the Act. During the performance of
examination procedures, it was determined
CMS is still serving as the internal audit
function for the Authority.

In an opinion dated August 9, 2019, the
Attorney General’s Office stated that “it
is clear that the Act contemplates that
each chief internal auditor will serve only
one designated State agency and will do so
on a full-time basis. Accordingly, because
a designated State agency may not share a
chief internal auditor with CMS or any
other designated State agency without
contravening the Act, a designated State
agency likewise may not enter into an
intergovernmental agreement permitting the
sharing of internal audit services without
violating the Act.”

The Act requires each designated State
agency to maintain a full-time program of
internal auditing (30 ILCS 10/2001(a)). The
Authority is a designated State agency
required to maintain a full-time program of
internal auditing (30 ILCS 10/1003(a)).

The Act (30 ILCS 10/2002(a)) also requires
the Executive Director to appoint a chief
internal auditor.

The Attorney General ruled in Opinion No.
19-001, issued August 9, 2019, pg. 2, that,
“multiple designated State agencies may not
appoint the same individual as their chief
internal auditor through the execution of
an intergovernmental agreement”. (Finding
2, pages 9-10) This finding has been
reported since 2013.

We recommended the Authority’s Executive
Director appoint a chief internal auditor,
who is not appointed by any other State
agency as a chief internal auditor, and
ensure a full-time program of internal
auditing is in place and functioning at the
Authority.

Authority officials accepted our
recommendations.

OTHER FINDINGS

The remaining findings pertain to internal
controls over allowable costs/activities,
weaknesses in cybersecurity programs and
practices, and delinquent and inaccurate
reporting of bond activity.  We will review
the Authority’s progress towards the
implementation of our recommendations in
our next State compliance examination.

AUDITOR’S OPINIONS

The financial audit was previously
released. The auditors stated the financial
statements of the Authority as of and for
the year ended June 30, 2025, are fairly
stated in all material respects.

The Single Audit was previously released.
The auditors also conducted a Single Audit
of the Authority as required by the Uniform
Guidance. The auditors stated the Authority
complied, in all material respects, with
the types of compliance requirements that
could have a direct and material effect on
the Authority’s major federal programs for
the year ended June 30, 2025.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Authority for
the two years ended June 30, 2025, as
required by the Illinois State Auditing
Act. The accountants qualified their report
on State compliance for Findings 2025-001
and 2025-002.  Except for the noncompliance
described in these findings, the
accountants stated the Authority complied,
in all material respects, with the
requirements described in the report.

This State compliance examination was
conducted by RSM US LLP.

COURTNEY DZIERWA
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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