REPORT DIGEST

ILLINOIS STATE BOARD OF INVESTMENT

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  March 28, 2019

FINDINGS THIS AUDIT:  2

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

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 Illinois State Board of
Investment (Board or ISBI) 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
December 27, 2018.  In total, this report
contains two findings, one of which was
reported in the Financial Audit.

SYNOPSIS

• (18-02) The Board did not prepare its
annual report within the timeframe required
by the Illinois Pension Code.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS


UNTIMELY PREPARATION OF ANNUAL FINANCIAL
REPORT

The Illinois State Board of Investment
(ISBI) did not prepare its annual report
within the timeframe required by the
Illinois Pension Code.

During our testing of State mandates
applicable to ISBI, we noted the audit of
ISBI’s annual financial report was not
completed until January 16, 2018 (date of
auditors’ report) and was publicly released
by the Illinois Office of the Auditor
General on January 31, 2018.  Accordingly,
ISBI did not provide its annual report to
each pension fund, retirement system or
education fund under its jurisdiction with
6 months after the close of the fiscal year
as required by the Illinois Pension Code.
(Finding 2, pages 13-14)

We recommended ISBI establish procedures to
ensure annual financial reports are
prepared and made available to the pension
funds, retirement systems, and education
funds under its jurisdiction within
timeframes required by the Illinois Pension
Code.

ISBI officials agreed with the finding and
recommendation.

AUDITOR’S OPINION

The financial audit was previously
released. The auditors stated the financial
statements of the Board as of and for the
year ended June 30, 2018 are fairly stated
in all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Board for the year ended
June 30, 2018, as required by the Illinois
State Auditing Act.  The accountants stated
the Board complied, in all material
respects, with the requirements described
in the report.

This compliance examination was conducted
by KPMG 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:TLK