REPORT DIGEST

ROSELAND COMMUNITY MEDICAL DISTRICT
COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED DECEMBER 31,
2020

Release Date:  July 21, 2021

FINDINGS THIS AUDIT:  4

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 3 -- 4
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 3 -- 4

FINDINGS LAST AUDIT: 1*
*Prior year finding 2018-001 was
separated out and broken into three
separate findings.

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

Because of the significance and
pervasiveness of the matters described
within the findings included within
the report, we expressed an adverse
opinion on the Commission’s compliance
with the specified requirements which
comprise a State compliance
examination.  The Codification of
Statements on Standards for
Attestation Engagements (AT-C §
205.72) states a practitioner “should
express an adverse opinion when the
practitioner, having obtained
sufficient appropriate evidence,
concludes that misstatements,
individually or in the aggregate, are
both material and pervasive to the
subject matter.”

SYNOPSIS

• (2020-001)	The Commission failed
to establish a control environment.
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO ESTABLISH A CONTROL
ENVIRONMENT

The Roseland Community Medical
District Commission (Commission)
failed to establish a control
environment.

During our testing, we noted the
following:

• The Commission was unable to provide
complete and proper supporting
documentation for two of two (100%)
tested disbursements during the
examination period, totaling $2,025.
Therefore, we were unable to determine
whether the disbursements were for the
correct amount and the documentation
was complete, properly approved, and
in accordance with applicable
policies. In addition, due to the lack
of complete and proper supporting
documentation, we could not determine
if additional reporting requirements,
such as federal Form 1099-MISC, were
applicable.

• Based on review of the Commission’s
Board minutes, there is evidence of
financial activity that was not
recorded in Commission records.
Namely, a $5,000 payment was made for
a draft plan that did not appear as an
expenditure on the Commission
financial records.

• The Commission has a Memorandum of
Understanding in effect with a not-
for-profit corporation.  Related party
transactions between the Commission
and the not-for-profit corporation are
not being accounted for in the
Commission’s financial records.
Further, there is risk of a conflict
of interest as the Interim Executive
Director of the Commission is also the
Executive Director of the not-for-
profit corporation.

• The Commission failed to revoke bank
signature authority for a Commissioner
who is no longer active.  The
Commissioner has been inactive since
June 5, 2017.

• The Commission failed to maintain a
general ledger, trial balance, or a
summary schedule of financial activity
and the Commission does not reconcile
its bank account on a monthly basis.

• The Commission’s bank charges a
monthly bank fee.  During 2019 and
2020, the Commission paid $176.40 in
bank fees, or $7.35 monthly.  The
Commission should consider moving its
account to a different bank which does
not charge fees in order to avoid
wasting its limited funding (Finding
1, pages 9-10).  This finding has been
repeated since 2016.

We recommended the Commission take
action to establish a control
environment to provide assurance it
complies with the State Records Act,
the Fiscal Control and Internal
Auditing Act, and the Statewide
Accounting Management System.
Further, we recommended the Commission
ensure its accounting records are
prepared, maintained, and reconciled
to adequately support its transactions
and reporting.

The Commission declined to provide a
response.

OTHER FINDINGS

The remaining findings pertain to
controls over the Roseland Community
Medical District Act, Board member
vacancies, and filing of statements of
economic interests.  We will review
the Commission’s progress towards the
implementation of our recommendations
in our next compliance examination

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Commission for the
two years ended December 31, 2020, as
required by the Illinois State
Auditing Act.  Because of the effect
of the noncompliance described in
Findings 2020-001 through 2020-004,
the accountants stated the Commission
did not comply with the requirements
described in the report.

This compliance examination was
conducted by the Office of the Auditor
General’s staff.

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:JAC