REPORT DIGEST STATEWIDE 9-1-1 FUND AND WIRELESS CARRIER REIMBURSEMENT FUND LIMITED SCOPE COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED JUNE 30, 2018 Release Date: May 23, 2019 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 1 -- 1 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 0 -- 0 TOTAL: 0 -- 1 -- 1 FINDINGS LAST AUDIT: 1 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 We conducted a limited scope compliance examination of the Statewide 9-1-1 Fund and the Wireless Carrier Reimbursement Fund in accordance with the Emergency Telephone System Act (Act) (50 ILCS 750). The activities conducted under the Act are recorded in two funds. The Statewide 9-1-1 Fund (Fund 612) is used for surcharges assessed under the Act and grants to emergency telephone system boards and qualified entities. The Wireless Carrier Reimbursement Fund (Fund 613) is used for the reimbursement of wireless carriers and administrative costs. Effective January 1, 2016, the Act (50 ILCS 750/75) transferred all rights, functions, powers, and duties of the Illinois Commerce Commission as set forth in the Wireless Emergency Telephone Safety Act (50 ILCS 751) to the Illinois Department of State Police. However, the Illinois Commerce Commission remains responsible for payments from Fund 613. SYNOPSIS • (18-01) The Department of State Police did not maintain adequate internal controls over receipts and reconciliations. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER RECEIPTS AND RECONCILIATIONS The Department of State Police (Department) did not maintain adequate internal controls over receipts and reconciliations. During testing, we found the following: • The population provided by the Department of cash receipts received did not agree to the documentation the Department provided with receipt reconciliations for Fiscal Year 2018. • The Department’s June 2018 reconciliation contained unknown reconciliation discrepancies between the Office of the State Comptroller (Comptroller) records and the Department’s records. The discrepancies totaled a net amount of $5,348,303. • The Department’s reconciliations showed differences in deposits-in-transit amounts. • The Monthly Revenue Status Report (SB04) reconciliations for Fund 612 and Fund 613 for 9 of 24 (38%) months were not performed within 60 days following the end of the month. The reconciliations were completed 41 to 253 days late. • Documentation of when the SB04 reconciliation was completed was not maintained for 4 of 24 (17%) months. Therefore, we were unable to determine if reconciliations were performed timely. (Finding 1, pages 12-14) We recommended the Department maintain accurate and detailed records of all cash receipts and strengthen procedures to properly and timely reconcile Department and Comptroller receipt records. Department management concurred with the finding and recommendation and stated they have put policies and procedures in place to ensure all reconciliations are performed timely and accurately. ACCOUNTANT’S OPINION The accountants conducted a limited scope compliance examination of the Statewide 9-1-1 Fund and the Wireless Carrier Reimbursement Fund for the two years ended June 30, 2018, as required by the Emergency Telephone System Act (50 ILCS 750/50) and the Illinois State Auditing Act. The accountants stated the Illinois Commerce Commission and Department of State Police complied, in all material respects, with the requirements described in the report. This limited scope compliance examination was conducted by West & Company, 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:SW