REPORT DIGEST

ILLINOIS HOUSING DEVELOPMENT AUTHORITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2024

Release Date:  April 8, 2025

FINDINGS THIS AUDIT: 10

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  4 -- 6 -- 10
Category 3:  0 -- 0 -- 0
TOTAL:  4 -- 6 -- 10

FINDINGS LAST AUDIT: 11

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 Compliance
Examination of the Illinois Housing
Development Authority (Authority) for the
two years ended June 30, 2024.  A separate
Financial Audit as of and for the year ended
June 30, 2024, was previously released on
December 12, 2024.  A separate Single Audit
for the year ended June 30, 2024, was
previously released on February 25, 2025.
In total, this report contains 10 findings,
one of which was reported in the Financial
Audit and Single Audit.

SYNOPSIS

• (24-5) The Authority has not established
adequate controls over contracts to ensure
goods and services receive prior approval
and comply with all applicable State laws,
regulations and internal policies and
procedures.
• (24-8) The Authority did not properly
accrue for compensated employee absences.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER CONTRACTS

The Authority has not established adequate
internal controls over contracts to ensure
goods and services receive prior approval
and comply with all applicable State laws,
regulations and internal policies and
procedures.

During our review of 40 contracts (totaling
$38,356,702) for the two-years ending June
30, 2024, we noted the following:

• For twenty-three contracts (58%) totaling
$34,470,111 the Authority did not initiate a
purchase requisition with the proper
approvals prior to incurring services.

• For two contracts (5%) totaling $358,445
services were incurred prior to the
execution date of the contract.

• For one contract (3%) totaling $298,874,
the contract exceeded $250,000 but was not
signed or approved in writing by Chief
Executive Officer, Chief Legal Counsel, and
Chief Fiscal Officer. This finding has been
reported since 2020.  (Finding 5, pages
15-16)

We recommended the Authority establish and
maintain internal control procedures to
ensure the purchase requisition/purchase
order is in place prior to the receipt of
goods and services.  We further recommended
that contracts are executed prior to the
receipt of goods and services, including all
required approvals.

Authority officials agreed with the
recommendation.

IMPROPER ACCRUAL OF COMPENSATED ABSENCES

The Authority did not properly accrue for
compensated employee absences.

During our testwork of 30 employees’ accrued
compensated absences (i.e. vacation and sick
leave) liability balances during the two
years ended June 30, 2024, we noted the
following:

Regarding the FY23 Vacation and Sick accrual
schedules:

• Twenty-six employees were mistakenly
excluded from the sick accrual schedule,
resulting in an understatement to sick
liability. Specifically, we noted the hours
ranged from 4.5 to 45 and in total 619.25
hours and $22,486.

• One terminated employee was mistakenly
included on the sick accrual schedule,
resulting in the sick balance being
overstated. Specifically, we noted the
overstatement to be 70.63 hours and $2,537.

• One employee was mistakenly excluded from
the sick accrual schedule. Additionally,
this employee used more sick time than what
was accrued. We noted the total was 5.5
hours and $402.

• Four vacation accruals were calculated
incorrectly resulting in the vacation
balance being understated. Specifically, we
noted the hours ranged from 10.5 to 30 and
in total 83.5 and $4,363.

• Seventeen employees were mistakenly
excluded from the vacation accrual schedule,
resulting in an understatement to vacation
liability. Specifically, we noted the hours
ranged from 0 to 56.25 and totaling 489.25
hours and $19,848.

• One terminated employee was mistakenly
included on the vacation schedule, resulting
in an overstatement to vacation liability.
Specifically, the overstatement was 37.5
hours and $1,207.

• Four employees were mistakenly excluded
from the vacation accrual schedule.
Additionally, these employees used more
vacation time than what was accrued. We
noted the hours ranged from 1.5 to 22.5 and
totaling 51.5 hours and $1,343.

Regarding the FY24 Vacation and Sick accrual
schedules:

• One sick accrual was calculated
incorrectly resulting in the sick balance
being overstated. Specifically, the
overstatement was 93 hours and $2,141.

• Three employees were mistakenly excluded
from the sick accrual schedule, resulting in
an understatement to sick liability.
Specifically, we noted the hours ranged from
17 to 45 and totaling 87.5 hours and $6,154.

• Eight vacation accruals were calculated
incorrectly resulting in the vacation
balance being understated. Specifically, we
noted the hours ranged from 5.5 to 37.5 and
totaling 142.25 and $6,045.

• Three employees were mistakenly excluded
from the vacation accrual schedule resulting
in an understatement to vacation liability.
Specifically, we noted the hours ranged from
33.63 to 78.13 and totaling 175.5 and
$7,425. (Finding 8, pages 19-20)

We recommended the Authority enforce
existing policies and procedures to ensure
proper review of the calculation of accrued
compensated absences.

Authority officials agreed with the
recommendation.

OTHER FINDINGS

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

AUDITOR’S OPINIONS

The auditors stated the financial statements
of the Authority as of and for the year
ended June 30, 2024, are fairly stated in
all material respects.

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 programs for the year
ended June 30, 2024.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Authority for the year
ended June 30, 2024, as required by the
Illinois State Auditing Act.  The
accountants stated the Authority complied,
in all material respects, with the
requirements described in the report.

This State Compliance Examination was
conducted by CliftonLarsonAllen 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

FJM:TLK