REPORT DIGEST GENERAL ASSEMBLY RETIREMENT SYSTEM COMPLIANCE EXAMINATION FOR THE YEAR ENDED JUNE 30, 2018 Release Date: April 18, 2019 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 0 -- 1 -- 1 Category 3: 0 -- 0 -- 0 TOTAL: 0 -- 1 -- 1 FINDINGS LAST AUDIT: 2 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 This digest covers our Compliance Examination of the General Assembly Retirement System for the year ended June 30, 2018. A separate Financial Audit as of and for the year ending June 30, 2018, was previously released on January 23, 2019. In total, this report contains 1 finding, which was not reported in the Financial Audit. SYNOPSIS • (18-1) The General Assembly Retirement System of the State of Illinois did not comply with the Ethics training provisions of the Illinois Pension Code. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH ETHICS TRAINING REQUIREMENTS The General Assembly Retirement System of the State of Illinois (System) did not comply with the Ethics training provisions of the Illinois Pension Code. During the current year examination testing, auditors noted the System did not track the ethics training completed by its Board members and did not submit the required annual certification of compliance certifying ethics training was completed by its Board members with the Department of Insurance. (Finding 1, page 10) This finding has been repeated since 2015. We recommended the System offer the Board members the opportunity to participate in the 8 hours of ethics training in order to internally process and track each Board member’s ethics training requirements and submit the required annual certification to the Department of Insurance or seek legislative remedy from the statutory requirement. System officials accepted the finding and stated they will work towards scheduling training for trustees when their schedule allows. They also noted that six of the seven members of the GARS Board are current legislators who have been involved in the drafting, debate and passage of legislation affecting the various public retirement systems and pension funds in Illinois. (For the previous Department response, see Digest Footnote #1.) ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the General Assembly Retirement System for the year ended June 30, 2018, as required by the Illinois State Auditing Act. The accountants stated the General Assembly Retirement System complied, in all material respects, with the requirements described in the report. This State compliance examination was conducted by RSM US 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 FJM:JAF DIGEST FOOTNOTES #1 – Noncompliance with Ethics Training Requirements The System accepts the finding and will continue to work with the Trustees of the Board to schedule and implement required training in the future.