State of Illinois Department of Human Services

State of Illinois Department of Human Services

Financial Audit For the Year Ended June 30, 2020

Performed as Special Assistant Auditors for the Auditor General, State of Illinois

State of Illinois Department of Human Services

Financial Audit

Table of Contents

Agency Officials

Financial Statement Report Summary Independent Auditor's Report Basic Financial Statements Statement of Net Position and Governmental Funds Balance Sheet Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position Statement of Activities and Governmental Revenues, Expenditures and Changes in Fund Balances Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to Financial Statements

Supplementary Information Combining Schedule of Accounts ? General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balance ? General Fund Combining Balance Sheet ? Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance ? Nonmajor Governmental Funds Combining Statement of Fiduciary Net Position ? Agency Funds Combining Statement of Changes in Assets and Liabilities ? Agency Funds

Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Schedule of Findings Current Findings Prior Findings Not Repeated

Page 1

2 - 3 4 - 6

7 8 9 10 11 12 13 - 49

50 - 51 52 - 53 54 - 63 64 - 73

74 75

76 - 77

78 - 113 114

Secretary Assistant Secretary (Operations) Assistant Secretary (Programs) Budget Director Business Services Director Chief of Staff Chief Financial Officer Chief Operating Officer Chief Internal Auditor General Counsel Inspector General

State of Illinois Department of Human Services

Agency Officials Grace B. Hou Dulce Quintero Kia Coleman Tiffany Blair Paul Hartman Ryan Croke Robert Brock Francisco DuPrey Amy Macklin John F. Schomberg Peter Neumer (11/18/19 ? present) Dan Dyslin (Acting, through 11/17/19)

Agency main offices are located at:

100 South Grand Avenue, East Springfield, Illinois 62762

401 South Clinton Street Chicago, Illinois 60607

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State of Illinois Department of Human Services

Financial Statement Report

Summary

The audit of the accompanying basic financial statements of the State of Illinois, Department of Human Services (Department) was performed by RSM US LLP.

Based on their audit, the auditors expressed unmodified opinions on the Department's basic financial statements.

Summary of Findings

Item No.

Last/First Page Report

Description

Findings (Government Auditing Standards )

2020-001 78 2019/2017 Medical Assistance Program Financial Information

2020-002 2020-003 2020-004 2020-005 2020-006 2020-007 2020-008 2020-009 2020-010

2020-011 2020-012 2020-013

80 2019/2017 Lack of Adequate Controls over the Review of Internal

Controls over Service Providers

85

New

Revenue not Recorded in the Correct Fund and

Noncompliance with Statute

88

New

Errors in Computing the Allowance for Doubtful Accounts

90 2019/2015 Inadequate Controls over Eligibility Determinations

and Redeterminations

94 2019/2017 Untimely Processing of Applications for Benefits, Redeterminations

of Eligibility for Benefits, and Eligibility Change Documentation

97 2019/2017 Insufficient Internal Controls over Changes to the

Integrated Eligibility System (IES) and Recipient Data

100

New

Inadequate Access Review Procedures for the Integrated

Eligibility System (IES)

102 2019/2019 Inadequate Disaster Recovery Controls over the

Integrated Eligibility System (IES)

104 2019/2019 Detailed Agreement with the Department of Innovation and

Technology (DoIT) not Sufficient and Inadequate Interagency

Agreement for the IES

106 2019/2018 Insufficient Review and Documentation of Provider Enrollment

Determinations and Failure to Execute Interagency Agreement

109 2019/2018 Inadequate General Information Technology Controls

over IMPACT

112

New

Lack of Census Data Reconciliation

Finding Type

Material Weakness and Noncompliance Material Weakness

Material Weakness and Noncompliance Material Weakness Material Weakness and Noncompliance Material Weakness and Noncompliance Material Weakness

Material Weakness

Material Weakness

Material Weakness

Material Weakness and Noncompliance Material Weakness

Significant Deficiency

Item No.

A. B. C.

Last/First Page Report

Description

Prior Findings Not Repeated

114

2019

Weaknesses in Preparation of Year-End Department

Financial Statements

114 2019/2017 Failure to Deposit Federal Funds According to Statute

114 2019/2017 Lack of Security Controls over the Integrated Eligibility

System (IES)

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State of Illinois Department of Human Services

Financial Statement Report

Summary of Findings (Continued)

Exit Conference

The findings and recommendations appearing in this report were discussed with Department personnel at an exit conference on May 21, 2021.

Attending were:

Department of Human Services:

Grace Hou Corey-Anne Gulkewicz John Schomberg Dulce Quintero Amy Macklin Robert Brock Connie Sabo Albert Okwuegbunam Christopher Finley Rahnee Patrick Tim Verry Barrett Sheeley Kim Ledesma Kory Chapman David Albert

Secretary Senior Policy Advisor General Counsel Assistant Secretary (Operations) Chief Internal Auditor Chief Financial Officer Fiscal Services Director Audit Liaison Audit Liaison Division of Rehabilitation Services Director Office of Family Community Services Director Social Services Program Planner Social Services Program Planner Chief Information Security Officer Director of Mental Health

Office of the Auditor General:

Janis Van Durme Kathy Lovejoy Joe Gudgel

Audit Senior Manager Audit Senior Manager Audit Senior Manager

RSM US LLP:

Linda Abernethy Ryan Caldwell Jacob Bender Dan Harker Chad McCoy

Partner Senior Manager Supervisor Manager Senior

The Department's responses to the recommendations were provided by Amy Macklin, Chief Internal Auditor, in correspondence dated May 25, 2021.

The Department of Healthcare and Family Services' responses to Recommendations 2020-005 through 2020-012 were provided by Jamie Nardulli, Chief Internal Auditor, in correspondence dated May 24, 2021.

The Department of Children and Family Services' response to Recommendation 2020-012 was provided by Joe McDonald, Associate Deputy Director, Fiscal Accounting, in correspondence dated June 1, 2021.

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