REPORT DIGEST

JUDGES’ RETIREMENT SYSTEM

COMPLIANCE EXAMINATION
For the Year Ended: June 30, 2013


Release Date:   March 20, 2014

Summary of Findings:
• Compliance Examination:   1
• Financial Audit (previously reported 1-8-14):
0
Total findings: 1
Total last report:   1
Repeated from last audit:   0

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, 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

This digest covers our compliance examination of
the Judges’ Retirement System (System) for the
year ended June 30, 2013.  A financial audit
covering the year ending June 30, 2013 was
previously released on January 8, 2014.  In
total this report contains one finding, which
was not previously reported in the Financial
Audit.

• The System lacked an adequate project
management framework, and the development
process over computer system projects was not
properly controlled and documented.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO IMPROVE PROJECT MANAGEMENT OVER THE
DEVELOPMENT OF COMPUTER SYSTEMS

The Judges’ Retirement System (System) did not
have an adequate project management framework,
and had not ensured the development process over
computer system projects was properly controlled
and documented.

During our examination we noted that there were
problems with the Modernization - Re-Engineering
Project.  The project has been ongoing for five
years, is only 20% complete, and over $2,000,000
has been expended by the State Retirement
Systems collectively.  Due to staffing issues
and the lack of a project management framework
and the associated documentation, the project
has not been fully implemented.  In addition,
formal documentation to provide detailed
information on the current status and projected
completion date is lacking.

We also found that the generally accepted
practices and steps associated with an effective
system development methodology were not
instituted.  System management stated a lack of
adequate staffing led to the delays in the re-
engineering project.   (Finding 1, pages 10-11)

We recommended the System:

• Develop and implement a project management
framework and tools to ensure projects are
adequately monitored and documented.

• Ensure all required documentation is
developed, reviewed, and approved by the System
prior to system implementation.

• Ensure all system and user testing is properly
conducted, reviewed, approved and documented
prior to system implementation.

• Ensure all changes are adequately reviewed,
tested, approved and documented prior to system
implementation.

System officials agreed with our recommendation
and indicated that a project management
framework, application development
methodologies, and change management controls
have since been implemented to address these
issues.

ACCOUNTANTS’ REPORT

The auditors conducted a compliance attestation
examination of the System for the year ended
June 30, 2013 as required by the Illinois State
Auditing Act.  The accountants’ report does not
contain any scope limitations, disclaimers or
other significant non-standard language.

WILLIAM G. HOLLAND
Auditor General

WGH:JAF

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for the
compliance examination were BKD LLP.