REPORT DIGEST

DEPARTMENT OF CENTRAL MANAGEMENT SERVICES

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  May 19, 2026

FINDINGS THIS AUDIT: 16

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  9 -- 6 -- 15
Category 3:  0 -- 0 -- 0
TOTAL:  9 -- 7 -- 16

FINDINGS LAST AUDIT: 10

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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 Department of
Central Management Services’ (Department)
compliance examination for the two years
ended June 30, 2025.

SYNOPSIS

• (25-1) The Department entered into
interagency agreements that failed to
adhere to provisions of the Fiscal Control
and Internal Auditing Act.

• (25-2) The Department failed to conduct
employee evaluations on a timely basis.

• (25-3) The Department demonstrated
weaknesses related to personal services.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ADHERE TO THE PROVISIONS OF THE
FISCAL CONTROL AND INTERNAL AUDITING ACT

The Department of Central Management
Services (Department) entered into
interagency agreements that failed to
adhere to provisions of the Fiscal Control
and Internal Auditing Act (Act).

During the engagement period, the
Department was party to interagency
agreements with the following designated
State agencies to provide internal audit
services:

• Illinois Finance Authority (IFA)
• Illinois Department of Agriculture (IDOA)
• Illinois Department of Corrections (IDOC)
• Illinois Department of Financial and
Professional Regulation (IDFPR)
• Illinois Department of Human Rights
(IDHR)
• Illinois Department of Public Health
(IDPH)
• Illinois Department of Veterans Affairs
(IDVA)

The following issues were noted with these
interagency agreements:

• The IFA and IDOA did not have a Chief
Internal Auditor during the engagement
period and strictly relied on the
Department to provide internal audit
services. The interagency agreements
ultimately resulted in these two agencies
not maintaining their own full-time
internal audit function. Further, these
interagency agreements resulted in the
Department’s Chief Internal Auditor not
working full-time with the Department’s own
internal audit function.

• The Department did not obtain the
Governor’s approval for the Department to
provide professional internal auditing
services for the following designated State
agencies:
-- IFA
-- IDHR
-- IDOA
-- IDFPR
-- IDOC

• The Department inconsistently established
reimbursement arrangements for these
agreements and did not follow any of the
reimbursement arrangements in the
interagency agreements. (Finding 1, pages
10-14) This finding has been reported since
2019.

We recommended the Department refrain from
entering into interagency agreements which
result in agencies and the Department not
maintaining their own full-time internal
audit function. Additionally, we
recommended any other services provided to
agencies be done only with the approval of
the Governor. Further, we recommended the
Department consistently establish and
enforce reimbursement arrangements for its
interagency agreements, and that
interagency agreements should be amended to
reflect the reimbursement arrangements
followed by the Department.

The Department accepted the finding and
recommendations and outlined its corrective
action plan.

FAILURE TO CONDUCT YEARLY PERFORMANCE
APPRAISALS

The Department failed to conduct employee
evaluations on a timely basis.

During testing of employees required to
have annual performance evaluations, we
noted annual evaluations were not performed
for 31 of 60 (52%) employees tested for at
least one of the two evaluations required
during the engagement period. In addition,
for the evaluations that were conducted, we
noted 15 of 60 (25%) evaluations for
employees tested were not conducted in
accordance with Department policies or the
Illinois Administrative Code (Code) for at
least one of the two evaluations required
during the engagement period. The
evaluations were performed between 15 to
200 days late. (Finding 2, pages 15-16)
This finding has been reported since 2013.

We recommended the Department enforce its
procedures throughout the Department to
ensure the completion of performance
evaluations in accordance with State rules
and internal personnel policy.

The Department accepted the finding and
recommendation and outlined its corrective
action plan.

INTERNAL CONTROL WEAKNESSES OVER PERSONAL
SERVICES

The Department demonstrated weaknesses
related to personal services.

During testing, we noted the following:

• Two of 40 (5%) employees tested worked
overtime during the examination period
without proper prior approval and
documentation.

• Twelve of 40 (30%) employees tested did
not submit their timesheets within a week
of the last day of the timesheet.
Timesheets were submitted between two and
235 days late. Additionally, we noted one
of 40 (3%) employee timesheets tested was
submitted without a signature date;
therefore, we were unable to test
timeliness.

• During our testing of employee training
requirements for 60 employees, one of 7
(14%) new hires tested did not complete
sexual harassment training or ethics
training within 30 days of starting with
the Department. Three of the 53 (6%)
remaining employees tested did not complete
the annual sexual harassment or ethics
training. (Finding 3, pages 17-19) This
finding has been reported since 2019.

We recommended the Department strengthen
controls related to prior approval and
documentation of overtime. Additionally, we
recommended the Department reinforce to
employees the importance of submitting
timesheets in accordance with Department
policy. Lastly, we recommended the
Department implement controls to ensure
employees complete all required trainings
in a timely manner and in accordance with
State law.

The Department accepted the finding and
recommendations and outlined its corrective
action plan.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by Department personnel.
We will review the Department’s progress
towards the implementation of our
recommendations in our next State
compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the Department
for the two years ended June 30, 2025, as
required by the Illinois State Auditing
Act. The accountants qualified their report
on State compliance for Finding 2025-001.
Except for the noncompliance described in
this finding, the accountants stated the
Department complied, in all material
respects, with the requirements described
in the report.

This State compliance examination was
conducted by Sikich CPA LLC.

COURTNEY DZIERWA
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

CHRISTOPHER B. MEISTER
Auditor General

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