REPORT DIGEST

OFFICE OF THE TREASURER, FISCAL
OFFICER RESPONSIBILIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  June 16, 2022

FINDINGS THIS AUDIT:  1

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

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

SYNOPSIS

• (21-01) The Office had inadequate
internal controls over the Office’s
Fiscal Officer Responsibilities
financial statement adjustment
process.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS RELATED
TO REVIEW OF FINANCIAL STATEMENTS

The Office had inadequate internal
controls over the Office’s Fiscal
Officer Responsibilities financial
statement adjustment process.

During testing of the Statements of
Assets and Other Debits, Liabilities
and Accountabilities (financial
statements), it was determined the
Clearing Account Deposits and Deposits
in Transit as well as the Agencies’
Deposits Outside the State Treasury
accounts were each understated by
$1,635,711,097.

As the Office collects deposits into
the State Treasury from various State
of Illinois Agencies, the Office
issues a non-negotiable draft for
Agencies to utilize in recording the
deposits with the IOC. Throughout the
year several Agencies deposited the
same non-negotiable drafts with the
IOC more than one time. After the IOC
accepted and credited these duplicate
deposits as new deposits, the Office
identified them as duplicates and sent
correspondence to the responsible
Agencies to rectify the duplication.
At June 30, 2021, certain Agencies had
not corrected their duplicate
deposits. The Office’s cash account
reconciliations at June 30, 2021
reported reconciling items which
included both the duplicate deposit as
well as any other deposits for the day
the duplicate occurred. When preparing
the financial statements, the Office
recorded a journal entry to adjust
Clearing Account Deposits and Deposits
in-Transit as well as Agencies’
Deposits Outside the State Treasury
accounts by the total of all
reconciling items reported on their
June 30, 2021 cash reconciliations.
Only the duplicate deposit portion of
the reconciling items would have been
double counted in the available cash
balance reported by the IOC. (Finding
1, page 131)

We recommend the Office improve
controls over the financial reporting
process for the Fiscal Officer
Responsibilities, specifically
verifying information received to
prepare financial statements is being
appropriately reviewed to facilitate
accurate year-end adjustments.

The Office accepted the recommendation
and stated they have adopted
additional review and communication
processes to identify and resolve
agency duplications to facilitate
accurate financial reporting and year-
end adjustments. Further, the Office
stated they plan to work with the IOC
to prevent duplicate non-negotiable
drafts from being credited.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Treasurer as of and
for the years ended June 30, 2021, and
June 30, 2020, are fairly stated in
all material respects.

This financial audit was conducted by
Crowe 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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