REPORT DIGEST

OFFICE OF THE SECRETARY OF STATE

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2021

Release Date:  June 8, 2022

FINDINGS THIS AUDIT:  16

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 2 -- 2
Category 2:  9 -- 5 -- 140
Category 3:  0 -- 0 -- 0
TOTAL:  9 -- 7 -- 16

FINDINGS LAST AUDIT: 12

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 the Office of the
Secretary of State’s (Office)
compliance examination for the two
years ended June 30, 2021.  A separate
audit of the Office’s financial
statements was previously released on
June 1, 2022.  In total, this report
contains 16 findings, three of which
were reported within the Secretary of
State’s financial audit report.

SYNOPSIS

• (21-4) The Office lacked formal
written policies for the
implementation of the Election Code.
• (21-7) The Office had weaknesses
related to property and equipment.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS


NONCOMPLIANCE WITH THE ELECTION CODE

The Office lacked formal written
policies for the implementation of the
Election Code (10 ILCS 5/1A-16.7(k))
(Code).

While the Office does require
employees to adhere to certain
procedural standards, including the
Driver’s Privacy Protection Act, 18
USC § 2721, within its policy manual,
the Office has not established
specific policies and procedures to
protect the privacy and security of
voter information as required by the
Code. (Finding 4, page 18)

We recommended the Office formally
implement policies and procedures to
protect the privacy and security of
voter information as it is acquired,
stored, and transmitted among
agencies, including the retention and
preservation of voter information.

Office officials accepted the
recommendation and stated the Office
implemented new policies and
procedures in Mary 2022.

WEAKNESSES RELATED TO PROPERTY AND
EQUIPMENT

The Office did not demonstrate
adequate control over property and
equipment during the engagement
period. Specific deficiencies noted as
a result of our testing are described
below:

• During our testing of the Office’s
preparation of the Agency Report of
State Property (C-15), we noted errors
in one of eight (13%) quarters tested.
Capital leases reported on the
Office’s C-15 for the third quarter of
Fiscal Year 2020 of $2,887,604 did not
agree to the Office’s property
records, which were $2,904,486. As a
result, the Office’s C-15s were
understated by a total of $16,882.

• Fourteen of forty (35%) items of
property and equipment tested were not
added to property acquisition records
in a timely manner as required by the
Illinois Administrative Code (44 Ill.
Adm. Code 5010.400). The assets were
added one to 325 days late. (Finding
7, pages 21-22)

We recommended the Office implement
controls and procedures to ensure its
property and equipment is reported and
accounted for in a timely manner which
complies with State statute and the
Illinois Administrative Code.

Office officials accepted the
recommendation and stated the Office
will continue to evaluate, review and
monitor its compliance with mandated
property control requirements.

OTHER FINDINGS

The remaining compliance findings
pertain to weaknesses in determination
of cash on hand and cash in transit
amounts, inadequate controls over
census data, change management,
noncompliance with various statutory
mandates, inaccurate Agency Fee
Imposition Reports, performance
evaluations, and weaknesses related to
service providers, access control,
Payment Cart Industry Data Security
Standards, cybersecurity programs and
practices, disaster recovery plan, and
computing environment. We will review
the Office’s progress towards the
implementation of our recommendations
in our next compliance examination.


ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Office for the two
years ended June 30, 2021, as required
by the Illinois State Auditing Act.
The accountants qualified their report
on State compliance for Findings
2021-001 and 2021-002. Except for the
noncompliance described in those
findings, the accountants stated the
Office complied, in all material
respects, with the requirements
described in the report.


This compliance examination was
conducted by Sikich, 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

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