REPORT DIGEST

ILLINOIS WORKERS’ COMPENSATION COMMISSION

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  March 10, 2026

FINDINGS THIS AUDIT: 11

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  1-- 9 -- 10
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 10 -- 11

FINDINGS LAST AUDIT: 21

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

SYNOPSIS

• (25-08) The Commission had weaknesses in
its change management controls.

• (25-11) The Commission had certain
deficiencies in its internal control to
ensure accurate census data was provided to
the State Employees’ Retirement System of
Illinois for use in the applicable annual
actuarial valuations.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CHANGE CONTROL WEAKNESS

The Commission had weaknesses in its change
management controls.

The Commission has several computer
applications which were critical for
providing and overseeing a no-fault system
of benefits to workers who experience job-
related injuries or diseases.

During our testing of the Commission’s case
management system change requests, we noted
two of four (50%) change requests tested
did not have evidence of management
approval.

In addition, we noted the Commission had
not developed and formalized a change
management policy or procedure for its
critical applications. (Finding 8, pages
26-27)

We recommended the Commission adopt a
formal change control policy and to ensure
its change management process is documented
and followed for its change requests,
including obtaining approvals.

Commission officials agreed with our
recommendation.

INACCURATE CENSUS DATA

The Commission had certain deficiencies in
its internal control to ensure accurate
census data was provided to the State
Employees’ Retirement System of Illinois
(System) for use in the applicable annual
actuarial valuations.

During the performance of the census
examination, it was identified that:

• During testing of System records to
Commission records (forwards testing), we
identified 1 of 22 (5%) employees with an
incorrect rate of pay. The rate of pay
reported was overstated by $100, or
approximately 1%, and the error was
applicable to fifteen pay periods of the
fiscal year, for a total of $750.

• During testing of Commission records to
System records (backwards testing), we
identified 1 of 22 (5%) employees with an
incorrect retirement deduction code.

• During forwards and backwards testing, we
identified 12 of 44 (27%) additional
employees with an incorrect rate of pay.
These employees had earned a longevity pay
rate increase of $30, effective January 1,
2024, but these increases were not
processed or paid through fiscal year-end.
Per further investigation and inquiry with
Commission officials, we noted that the
Department of Central Management Services
(CMS) had also identified 17 additional
Commission employees with the same
exception. In total, these exceptions
resulted in an understatement in gross
earnings of approximately $5,220. The issue
was resolved subsequent to fiscal year-end.

The result of the errors above led to
contributions due to the plan being
understated and inaccurate census data
being utilized by the System and the State
in the performance of the annual pension
and other postemployment benefit (OPEB)
actuarial valuation processes. The
independent actuaries utilized by the
System and the State of Illinois for the
pension and OPEB plans deemed these errors
immaterial to the plan level valuations as
a whole.  (Finding 11, pages 31-32)

We recommended the Commission strengthen
controls to ensure accurate census data is
provided to the System for use in the
annual actuarial valuation process. If
differences are noted between the
Commission’s data and the System’s data,
these differences should be communicated
timely and rectified to ensure the
actuarial valuations are using accurate
data.

Commission officials agreed with the
finding and indicated they are working to
identified any differences in its data in a
timely manner.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the Commission.  We will
review the Commission’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 Commission
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 the finding, the accountants
stated the Commission complied, in all
material respects, with the requirements
described in the report.

This State compliance examination was
conducted by Roth & Co., LLP.

COURTNEY DZIERWA
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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