REPORT DIGEST

STATE UNIVERSITIES RETIREMENT SYSTEM

COMPLIANCE EXAMINATION
For the Year Ended: June 30, 2015

Release Date:  April 14, 2016

FINDINGS THIS AUDIT:  2

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

FINDINGS LAST AUDIT: 1

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 State Universities
Retirement System (System) for the year
ended June 30, 2015. A separate Financial
Audit as of and for the year ending June
30, 2015, was previously released on
January 12, 2016. In total, this report
contains two findings, one of which was
also reported in the Financial Audit.

SYNOPSIS

• (15-02) The System failed to identify an
error within their payroll processing
during the fiscal year ended June 30,
2015.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

PAYROLL PROCESSING ERRORS

The State Universities Retirement System
(System) failed to identify an error
within their payroll processing during the
fiscal year ended June 30, 2015.

During our compliance testing over
personal services, it was noted that an
error existed within the payroll process
which led to an overpayment of insurance
expenses to the Department of Central
Management Services for the employer
portion of Health/Life/Dental insurance
costs. The error led to an overpayment of
$402.48 on 24 out of 26 payroll vouchers
for the fiscal year ended June 30, 2015
which comes to an overpayment of $9,659.52
for the fiscal year.

In addition to the error noted for fiscal
year 2015, it was also noted that the
error dates back to 2012 and led to
overpayments as follows: Fiscal year 2012
overpayment of $28; Fiscal year 2013
overpayment of $1,567.44; Fiscal year 2014
overpayment of $7,749.36. (Finding 2, page
11)

We recommended the System follow controls
in place to properly review and
recalculate rates utilized for vouchers to
ensure that payments made are calculated
correctly in accordance with established
rates.

System officials concurred with the
finding stated they have collected the
overpaid amounts noted in the audit
finding.

ACCOUNTANT’S OPINION

The auditors conducted a State compliance
examination of the State Universities
Retirement System for the year ended June
30, 2015, as required by the Illinois
State Auditing Act. The accountants stated
the System complied, in all material
respect, with the requirements described
in the report.

FRANK J. MAUTINO
Auditor General

FJM:TLK

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
examination were RSM US LLP.