REPORT DIGEST

ILLINOIS DEPARTMENT OF PUBLIC HEALTH

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  Aug. 1, 2024

FINDINGS THIS AUDIT: 39

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  1 -- 5 -- 6
Category 2:  11 -- 22 -- 33
Category 3:  0 -- 0 -- 0
TOTAL:  12 -- 27 -- 39

FINDINGS LAST AUDIT: 31

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

SYNOPSIS

•	(23-01)	The Illinois Department of
Public Health (Department) did not exercise
adequate internal 	controls over State
vehicles.
•	(23-04)	The Department did not have
adequate controls over contracts to ensure
the contracts contained the necessary
provisions, were properly approved, and
accurately reported.
•	(23-05)	The Department did not
adequately administer and monitor its awards
and grants programs.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER THE ADMINISTATION
OF STATE VEHICLES

The Illinois Department of Public Health
(Department) did not exercise adequate
internal controls over State vehicles.

The Department’s fleet consisted of 109
vehicles at June 30, 2022 and 98 at June 30,
2023. Of those vehicles, 36 were personally
assigned to employees during Fiscal Year
2022 and 41 in Fiscal Year 2023.

During testing, we noted the following:

• The Department was not able to provide the
vehicle mileage log reports for three of 98
(3%) vehicles tested, as such, we were not
able to determine whether these vehicles
were efficiently utilized for the specific
operational needs of the Department,
properly maintained, and the mileage
properly reported.

• The Department did not ensure its vehicles
were properly maintained during the
engagement period. The auditors reviewed the
maintenance records for 22 vehicles and
noted the following:

— Nine (41%) vehicles tested received oil
changes 128 to 4,679 miles past the allowed
oil change interval. Additionally, two (9%)
vehicles tested did not receive an oil
change during the engagement period.

— Four (18%) vehicles tested did not receive
a tire rotation, as required. Additionally
one (5%) vehicle had a tire rotation past
the allowed interval and another vehicle
(5%) had inadequate documentation,
therefore, we were not able to determine
whether this vehicle had a tire rotation
within the allowed interval.

— Four (18%) vehicles tested did not undergo
an annual inspection during the engagement
period.

— One (5%) vehicle was not found on the
location indicated in the Department’s
property listing during the physical
inspection of vehicles. In addition, the
Department was not able to provide
sufficient supporting documentation on the
disposal and transfer of two (9%) vehicles.

— The Department was not able to provide the
maintenance records for three (14%) vehicles
tested, as such, we were not able to
determine whether these vehicles were
properly maintained.

• The Department did not exercise adequate
control over the personal use of state
vehicles. We noted the following:

— Seventy-two (100%) monthly vehicle logs
and vehicles use certification forms tested
were not reviewed and reconciled for the
determination of the fringe benefit value
submitted for tax purposes. The Department
only used the commuting days reflected in
the certification forms to report fringe
benefits. In addition, five of 72 (7%)
monthly vehicle logs and vehicle use
certification forms tested differed as to
the number of commuting days the State
vehicle was used, resulting in the
overstatement of reported fringe benefit
payments for tax purposes totaling $45 in
Fiscal Year 2022 and understatement of $15
in Fiscal Year 2023.

— Thirty-seven of 72 (51%) vehicle use forms
tested were not submitted to the Payroll
Division on the 10th of the month following
the usage. The vehicle use certification
forms were submitted from four to 300 days
late. Additionally, 13 of 72 (18%) vehicle
use certification forms tested were not
stamped with a receipt date, therefore,
timeliness of submission of the forms cannot
be determined. Further, one of 72 (1%)
vehicle use certification forms tested was
not submitted to the Payroll Division.

— Two of 72 (3%) vehicle use certification
forms tested did not agree with the payroll
voucher, resulting in an understatement
totaling $39 in Fiscal Year 2022.

— The Department was not able to provide 17
of 72 (24%) monthly vehicle logs tested, as
such, we were not able to determine whether
the number of commuting days and fringe
benefit payments were properly reported.

• The Department did not exercise adequate
control over the required annual
certifications of licensure and automobile
liability coverage form (certification
form). We noted the following:

— Five of 34 (15%) employees tested did not
submit the certification forms during the
engagement period.

— One of 34 (3%) employees tested submitted
the certification form 124 days late.

• The Department did not timely and properly
report vehicle assignments to DCMS. We noted
the following:

— The Department submitted the Fiscal Year
2022 Individually Assigned Vehicle (IAV)
Report five days late.

— The Department was not able to provide
three of five (60%) vehicle assignment
authorization forms tested.

— One of 34 (3%) employees tested submitted
the vehicle assignment authorization form
124 days late. (Finding 1, pages 15-19) This
finding has been reported since 2007.

We recommended the Department strengthen its
controls over its State vehicles.
Specifically, we recommended the Department:
• Ensure vehicle mileage log reports are
maintained to monitor utilization and
maintenance of the State vehicle.
• Enforce vehicle maintenance schedules to
ensure vehicle safety, to reduce future year
expenditures for repairs, and to extend the
useful lives of vehicles.
• Enforce controls to ensure proper
reporting of fringe benefits and
documentation related to the personal use of
State vehicles.
• Review and enforce procedures over the
timely filing of the required annual
certification of license and liability
insurance.
• Remind staff of reporting requirements and
develop a monitoring process to ensure all
employee vehicle assignment changes, as well
as the required annual report on
Individually Assigned Vehicles, are properly
completed and submitted to DCMS by the
established due date.

The Department agreed with the finding and
recommendation and stated the Department
will ensure controls and processes are
strengthened to comply with the finding.


LACK OF CONTROL OVER CONTRACTS

The Illinois Department of Public Health
(Department) did not have adequate controls
over contracts to ensure the contracts
contained the necessary provisions, were
properly approved, and accurately reported.

As part of our testing, we requested the
Department to provide a population of
contractual agreements, emergency purchases,
and interagency agreements. In response to
our request, the Department provided
populations for emergency purchases and
interagency agreements but was not able to
provide a listing of all the contractual
agreements which the Department had entered
into during the examination period.
Additionally, the emergency purchases
listing provided by the Department did not
agree with the emergency purchases reported
to the Office of the Auditor General and
there were interagency agreements not
reported in the Agency Contract Report
(SC-14). Due to these conditions, we were
unable to conclude the Department’s
population records were sufficiently precise
and detailed under the Attestation Standards
promulgated by the American Institute of
Certified Public Accountants (AT-C §
205.36).

During testing, we noted the following:

• Six of 14 (43%) interagency agreements
tested, totaling $5,706,197, were executed
subsequent to the performance of services.
The agreement execution dates ranged from
seven to 385 days late. Additionally, the
Department was not able to provide the
executed agreements for two of 14 (14%)
interagency agreements tested. Therefore, we
are unable to test those agreements.

• For two of eight (25%) emergency purchase
contracts tested, totaling $608,380, the
Department published the total actual cost
of each emergency purchase in the Illinois
Procurement Bulletin 40 and 390 days late.
In addition, one of eight (13%) emergency
purchase contracts tested, totaling
$360,101, ended on June 30, 2022 but the
Department had not published the actual cost
as of auditors’ fieldwork.

• The Department was not able to provide the
supporting documentation that they submitted
to the Procurement Policy Board and the
Commission on Equity and Inclusion for the
following:

— Notice of award for seven of eight (88%)
emergency purchase contracts testing,
totaling $10,765,277, and

— Notice of intent to extend an emergency
contract for five of eight (63%) emergency
purchase contracts tested, totaling
$10,351,570.

• Three of 60 (5%) contractual agreements
tested, totaling $5,541,576, were filed with
the Comptroller more than 30 days after
their execution and were not accompanied by
a Late Filing Affidavit.

• Five of 60 (8%) contractual agreements
tested, totaling $1,153,964, did not have
the required subcontractor disclosure and
utilization statements. In addition, one of
60 (2%) contractual agreements tested,
totaling $471,550, did not have the Conflict
of Interest Certification, and one (2%)
contract, totaling $43,864, did not have the
Certification of Registration with the State
Board of Elections.

• For 26 of 60 (43%) contracts tested, the
Contract Obligation Documents (CODs) were
not properly completed. We noted the
following:

— Twenty CODs totaling $12,284,856, included
incorrect Illinois Procurement Bulletin/
Bidbuy publication dates. Three of these
CODs had an incorrect procurement reference
number, one COD had an incorrect award code,
and one COD had an incorrect appropriation
code.

— Two CODs totaling $1,555,550, had contract
beginning and ending dates different from
the dates reported in the SC-14 Report.

— Four CODs did not state the correct annual
contract amounts. The total annual amounts
entered in the COD was $2,422,573, however,
the total annual amounts reported in the
SC-14 Report was $7,890,634. One of these
CODs also incorrectly entered an obligation
amount totaling $1,751,603, instead of the
obligation amount totaling $6,314,022 in the
SC-14 Report. Additionally, two of these
CODs also did not state the correct maximum
contract amounts. The maximum contract
amounts entered in the CODs totaled
$4,025,265, however, the total maximum
contract amounts reported in the SC-14
Report was $9,525,184.

— One COD totaling $72,649 had an incorrect
obligation number.
— One COD stated that subcontractors will
not be utilized, however, the executed
contract indicated utilization of
subcontractors.

• The Department’s process in implementing
GASB Statement No. 87 – Leases (GASB 87),
was not adequate. The following issues were
noted:
— For two of five (40%) GASB 87 lease
contracts tested, totaling $1,251,212, the
forms SCO-560 were filed with the Office of
Comptroller 77 and 347 days late.
— For three of five (60%) GASB 87 leases
contracts tested, totaling $2,851,771, the
forms SCO-560 were not filed with the Office
of Comptroller, therefore, the Department
did not record the corresponding right of
use asset, lease liability, and lease
payments.
— The Department did not record the right of
use asset, lease liability, and lease
payments for one of two (50%) forms SCO-560
the Department submitted to the
Comptroller’s Office, resulting in the
understatement of the following accounts:
          ? Right of Use Asset amounting to
          $1,168,683;
          ? Lease Liability amounting to
          $1,168,683;
          ? Lease Payments amounting to
          $774,306. (Finding 4, pages 26-31)
              This finding has been reported
              since 2013.

We recommended the Department strengthen and
monitor controls to ensure:
• all required contract information is
complete and accurate,
• accurate and complete listings of
contractual agreements, emergency purchases,
and interagency agreements are maintained,
• proper implementation of the requirements
of GASB Statement No. 87, and
• compliance with the requirements of the
Procurement Code and State laws.

The Department agreed with the finding and
recommendation and stated the process of
contract monitoring is being evaluated and
will be strengthened to the standards
recommended by the Auditors.

INADEQUATE ADMINISTRATION AND MONITORING OF
AWARDS AND GRANTS PROGRAMS

The Illinois Department of Public Health
(Department) did not adequately administer
and monitor its awards and grants programs.

During Fiscal Years 2022 and 2023, the
Department expended over $701 million (44%)
for awards and grants of its approximately
$1.7 billion total expenditures. We sampled
58 grant programs from the following
offices: Health Promotion; Health
Protection; Disease Control; Women’s Health;
Preparedness and Response; and Center for
Minority Health Services. For the 58 grant
programs selected for testing, we examined
60 grant agreements totaling $55,095,365.

• For 47 of 60 (78%) grant agreements
testing, 426 quarterly/monthly program
reports were submitted to the Department
from 1 to 305 days after the deadline.

• For 25 of 50 (42%) grant agreements
testing, 58 quarterly/monthly program
reports were not reviewed timely. The
reviews were made from 1 to 280 days after
receipt.

• For 14 of 60 (23%) grant agreements
tested, 26 quarterly/monthly program reports
did not have evidence of review by
Department personnel.

• For 13 of 60 (22%) grant agreements
tested, 65 quarterly/monthly program reports
were not submitted to the Department by the
grantee. (Finding 5, pages 32-33) This
finding has been reported since 2007.

We recommended the Department strengthen its
controls to ensure documentation and timely
review of grantee’s required quarterly and
monthly reports are maintained. In addition,
we recommended the Department ensure that
grantees timely submit the progress reports
and other required reports to comply with
the provisions of the grant agreements.

The Department agreed with the finding and
recommendation stated it will work with the
Office of Fiscal Administration, the Office
of Performance Management, Internal Audit,
and the Division of Legal Services to
develop clear and consistent standards on
grant management across the agency,
including a review of associated best
practices and system improvements.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the Department. We will
review the Department’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 Department for the two
years ended June 30, 2023, as required by
the Illinois State Auditing Act. The
accountants qualified their report on State
compliance for Findings 2023-001, 2023-004,
2023-017, 2023-026, 2023-027, and 2023-030.
Except for the noncompliance described in
these findings, the accountants stated the
Department complied, in all material
respects, with the requirements described in
the report.

This State compliance examination was
conducted by Roth and Company 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

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