REPORT DIGEST

LEGISLATIVE REFERENCE BUREAU

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2021

Release Date:  February 2, 2022

FINDINGS THIS AUDIT:  4

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

FINDINGS LAST AUDIT: 4

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

SYNOPSIS

• (21-01) The Legislative Reference
Bureau (Bureau) did not maintain
adequate internal controls over
receipts.
• (21-02) The Bureau did not have
adequate controls over the monthly
reconciliations of appropriations,
cash receipts, contracts,
expenditures, and obligation activity.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER RECEIPT
PROCESSING

The Legislative Reference Bureau
(Bureau) did not maintain adequate
internal controls over receipts.

During testing, we noted the Bureau
did not maintain a detailed itemized
account of all moneys received during
Fiscal Years 2020 and 2021 showing the
receipt date, the payer, purpose, and
amount; therefore, the Bureau was
unable to provide adequate records
substantiating the population of
receipts collected during the
examination period. Due to these
conditions, we were unable to conclude
whether the Bureau’s population
records were sufficiently precise and
detailed under the Attestation
Standards promulgated by the American
Institute of Certified Public
Accountants (AT-C § 205.35) to test
the Bureau’s compliance relative to
receipts. In addition, due to these
limitations, we were unable to
conclude the Bureau’s Comparative
Schedule of Cash Receipts and Deposits
into the State Treasury on page 26 was
complete and appropriately reported.

Even given the population limitations
noted above, which hindered the
ability of the accountants to conclude
whether selected samples were
representative of the population as a
whole, we performed the following
test:

During testing of receipts, we noted 3
of 4 (75%) receipts tested, totaling
$165, were deposited between 29 and 69
days late. (Finding 1, pages 9-10)

We recommended the Bureau develop and
maintain internal control over its
receipts to ensure the timely
collection and depositing of revenues,
along with ensuring adequate
documentation is maintained and
readily available for all
transactions. In addition, we
recommended the Bureau establish
adequate records capable of providing
detailed transactions and balance
listing, which are timely reconciled
to the Office of the Comptroller’s
records.

Bureau officials accepted the finding
and noted they have adopted processes
to clarify the responsibilities
related to deposits to ensure future
compliance.

INADEQUATE CONTROLS OVER MONTHLY
RECONCILIATIONS

The Bureau did not have adequate
controls over the monthly
reconciliations of appropriations,
cash receipts, contracts,
expenditures, and obligation activity.

During testing of Fiscal Year 2020 and
2021 reconciliations between the
Office of Comptroller (Comptroller)
records and the Bureau’s records, we
noted the following:

• All Fiscal Year 2020 and 2021
reconciliations of Monthly
Appropriation Status Report (SB01),
Monthly Agency Contract Report (SC14),
and Monthly Obligation Activity Report
(SC15) did not contain sufficient
documentation to determine if the
reconciliations were adequately
prepared by the Bureau. We noted two
Fiscal Year 2021 vouchers, totaling
$25,333, recorded on the Bureau’s
records twice which were not noted as
unpaid reconciling items on the
Bureau’s Fiscal Year 2021 SB01
reconciliation.

• Seven of 29 (24%) SB01
reconciliations tested did not
document the dates the reconciliations
were performed. Accordingly, we could
not determine if the SB01
reconciliations were performed or
reviewed timely by the appropriate
individuals.

• All Fiscal Year 2020 and 2021
reconciliations of the Monthly Revenue
Status Report (SB04) and Object
Expense/Expenditures by Quarter Report
(SA02) were not completed by the
Bureau. (Finding 2, pages 11-12)

We recommended the Bureau perform
appropriation, cash receipts,
contracts, expenditures, and
obligations reconciliations in
accordance with the SAMS Manual and
document review by management on all
financial records.

Bureau officials accepted the finding
and noted they will take steps to
ensure the Executive Director’s
initials on the printed monthly
reconciliations are dated to indicate
the date of the examination.

OTHER FINDINGS

The remaining findings pertain to
weaknesses in cybersecurity programs
and practices and untimely submission
of and errors on required filings.  We
will review the Bureau’s progress
towards the implementation of our
recommendations in our next State
compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Bureau
for the two years ended June 30, 2021,
as required by the Illinois State
Auditing Act.  The accountants
qualified their report on State
compliance for Findings 2021-001 and
2021-002.  Except for the
noncompliance described in this
finding, the accountants stated the
Bureau complied, in all material
respects, with the requirements
described in the report.

This State 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

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