REPORT DIGEST

PROPERTY TAX APPEAL BOARD

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2020

Release Date:  February 2, 2022

FINDINGS THIS AUDIT:  13

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  3 -- 2 -- 5
Category 2:  7 -- 1 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  10 -- 3 – 13

FINDINGS LAST AUDIT: 3

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

• (20-01) The Board did not allow for
the speedy hearing of all appeals.
• (20-02) The Board failed to
establish adequate controls over its
State property records and related
reporting.
• (20-10) The Board has computer
security weaknesses.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

TIMELINESS OF HEARINGS

The Board did not allow for the speedy
hearing of all appeals.

During testing, we noted the
following:

• The Board has a backlog of property
tax appeal cases. As of June 30, 2020,
the Board had over 100,000 cases which
were still pending, and the increase
in cases has been exponential over the
past few years. It would take many
years to fully process the backlog
given the current increase in case
load, as well as current staffing
levels.

• The Board did not allow for a speedy
hearing of appeal cases. We analyzed
100% of the cases closed during the
examination period and pending as of
June 30, 2020, and noted the
following:
— 33,041 of 57,478 (57%) cases were
closed over two years from the receipt
date.
— 26,367 of 100,522 (26%) cases were
pending over two years from the
receipt date. (Finding 1, pages
11-12). This finding has been repeated
since 2004.

We recommended the Board work with the
Governor and the General Assembly to
increase its headcount, which will
assist the Board in providing for the
speedy hearing of all new appeals and
decrease the backlog of appeals.

The Board accepted this finding.

INADEQUATE CONTROLS OVER EQUIPMENT

The Board failed to establish adequate
controls over its State property
records and related reporting.

During testing, we noted the
following:

• We were unable to reconcile the
Comptroller’s Monthly Object Expense/
Expenditures by Quarter Report (SA02)
to the Board’s Agency Report of Fixed
Assets (Form C-15). The unexplained
differences between the Board’s SA02
reports and the Board’s Form C-15s
during the examination totaled $99,991
in Fiscal Year 2019 and $19,434 in
Fiscal Year 2020.

• The Board could not provide support
for deletions it listed on its Fiscal
Year 2019, Form C-15, totaling
$72,752. Furthermore, when the
auditors asked for a listing of the
Board’s deletions, these items were
not listed.

• Board management stated one item,
valued at $3,495, was sent to the
Department of Central Management
Services (DCMS) and is no longer in
the Board’s possession, but the item
remained on the Board’s property
listing as of June 30, 2020. Thus, the
Board’s property records were
overstated by $3,495.

• One of 1 (100%) equipment items
removed from the Board during the
examination period, totaling $6,995,
was not included on the Board’s Fiscal
Year 2019 Form C-15 for Quarter 3.

• The Board failed to remove surplus
property from its prior examination’s
Form C-15, resulting in a $15,471
overstatement in the Board’s property
amount reported on the current
examination Form C-15s.

• The Board was unable to provide the
auditors with the Fiscal Year 2018 and
Fiscal Year 2019 property listings
submitted to the DCMS alongside its
annual certifications of inventory.
(Finding 2, pages 13-15).

We recommended the Board strengthen
its internal controls over recording
and reporting of State property by
reviewing its inventory items and
inventory listing to ensure it is
accurate and up-to-date. In addition,
the Board should thoroughly review all
reports prepared from its records for
accuracy and completeness prior to
submission.

The Board accepted this finding.

INFORMATION SECURITY WEAKNESSES

The Board has computer security
weaknesses.

During testing, we noted the
following:

• The Board did not conduct a formal
review of its service provider’s
System and Organization Controls (SOC)
Reports and document the Complementary
User Entity Controls (CUEC).

• The Board did not have an approved
and tested disaster contingency plan
to ensure timely recovery of critical
computer systems during the
examination period.

• The Board was not performing and
documenting a periodic review of the
access rights for applications
utilized by the Board. The Accounting
Information System, Central Time and
Attendance System, eTime, Central
Payroll System, and PTAB2000
applications utilized by the Board did
not have access rights periodically
reviewed.

• During our review of access rights
for applications utilized by the Board
it was noted an employee was accessing
the application using an account from
an employee who was no longer
employed.

• The Board’s policies and procedures
regarding confidential and sensitive
information was not sufficient. The
policies and procedures did not
address what information is considered
confidential or sensitive or where
specifically that information is
stored to ensure it is safeguarded
against unauthorized use. (Finding 10,
pages 28-30).

We recommended the Board perform a
formal review of the SOC Reports and
Complementary User Entity Controls;
create, approve, and test a disaster
contingency plan; perform a review of
user access rights and document it;
ensure all employees utilize their own
accounts; and ensure it tracks all
sensitive and confidential information
kept within its systems.

The Board accepted this finding.

OTHER FINDINGS

The remaining findings pertain to
inadequate control over receipts,
inadequate control over
reconciliations, ERP transition,
performance evaluations, inadequate
control over timekeeping files, agency
fee imposition reports, failure to
prepare and submit required reports,
lack of interagency agreement with
DoIT, delayed audit responses, and
inadequate control over report
components. We will review the Board’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 Board
for the two years ended June 30, 2020,
as required by the Illinois State
Auditing Act.  The accountants
qualified their report on State
compliance for Findings 2020-001
through 2020-005.  Except for the
noncompliance described in these
findings, the accountants stated the
Board complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by the Office of the Auditor
General’s staff.

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:JMR