REPORT DIGEST

ILLINOIS HOUSING DEVELOPMENT AUTHORITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  December 21, 2022

FINDINGS THIS AUDIT:  2

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

FINDINGS LAST AUDIT: 2

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

This digest covers the Illinois
Housing Development Authority
(Authority) Financial Audit as of and
for the year ended June 30, 2022.  The
Authority’s Compliance Examination and
Single Audit covering the year ended
June 30, 2022 will be issued in
separate reports at a later date.

SYNOPSIS

•  (22-1) The Authority has not
established adequate internal controls
over service providers.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INACCURATE CONTROLS OVER SERVICE
PROVIDERS

The Illinois Housing Development
Authority (Authority) did not maintain
adequate controls over service
providers.

During the audit, we requested the
Authority to provide a population of
third-party service providers
utilized. Although the Authority
provided the population, they did not
provide documentation demonstrating
the population was complete and
accurate.  Due to this condition, we
concluded the Authority’s population
was not sufficiently precise and
detailed under the Professional
Standards promulgated by the American
Institute of Certified Public
Accountants (AU-C § 330, AU-C § 530,
AT-C § 205).

Despite the population limitations
noted above, we performed testing.
During testing of five service
providers, we noted:

• The Authority had not reviewed the
service providers’ System and
Organization Control (SOC) reports.

• The contracts with the service
providers did not document roles and
responsibilities, controls over the
security, integrity, availability,
confidentiality, and privacy. In
addition, the contracts did not
require the service provider to
undergo a SOC examination. (Finding 1,
pages 88-89)

We recommended the Authority perform
procedures to ensure its listing of
service providers utilized is complete
and accurate. In addition, we
recommended the Authority review SOC
reports and review its contracts with
service providers to ensure roles and
responsibilities and security controls
are documented and SOC examinations of
the service providers’ controls are
carried out.

Authority officials accepted the
recommendation.

OTHER FINDING

The remaining finding pertains to
inadequate controls over investments.
We will review the Authority’s
progress towards the implementation of
our recommendation in our next
financial audit.

AUDITOR’S OPINION

Our auditors stated the financial
statements of the Authority as of June
30, 2022, and for the year then ended,
are fairly stated in all material
respects.

The financial audit was conducted by
CliftonLarsonAllen 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

FJM:TLK