Here are excerpts:
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FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
INSUFFICIENT CONTROL OF INTERNAL SERVICE FUND BILLING
The Department did not adequately monitor the billing of
During testing of internal service fund billings, amounts due from other agencies, and amounts due from component units, we noted the following:
* Several State agents are collectively represented by the
In accordance with the various agreements, these employees covered by these agreements may choose not to benefit from the health coverage of the State Employees’ Collective Insurance Scheme (SEGIP) and to benefit from the health coverage of their employees through the union system. Retiring employees will participate in SEGIP for life, dental, and vision insurance benefits as employees, then transition to SEGIP for all of their other post-employment benefits (OPEB), including healthcare, retirement. In order to pay the unions for the health costs of these employees, SEGIP initially pays the union and the Department then prepares additional billings for SEGIP to recover these costs and collect the associated retiree portion of group insurance contributions for the SEGIP with the employer of each employee. These payments are made to
After these matters were brought to the attention of the Department,
* The Department is developing fees for professional services to be paid to the
We recommended the Department ensure that internal service fund billings are correctly calculated and follow up on unpaid bills in a timely manner.
The Department accepted the finding and recommendation. The Department stated that it has implemented processes and procedures to monitor and track Internal Services Funds billings in a timely manner to ensure agencies pay these bills within the fiscal year. where the liability is incurred. With respect to billing for professional services, the Department stated that it has updated its procedures and review processes to ensure that billing is correctly calculated.
LACK OF RECONCILIATION OF CENSUS DATA
The Department did not have a reconciliation process to provide assurance that the census data submitted to its pension and other post-employment benefit (POB) plans was complete and accurate.
During testing, we found that the Department had not performed a full first reconciliation of its census data recorded by the State Employees Retirement System of
After establishing a base year, the Department had not developed a process to annually obtain from SERS and CMS the incremental changes recorded by SERS and CMS in their census data records and reconcile those changes with internal records. of the Department. (Conclusion 3, pages 70-72)
We recommended that the Department work with SERS and its Office to develop a process for annual reconciliation of its active members’ census data from the Department’s underlying personnel records to a report of each census data plan submitted to plan actuary. After performing a first full reconciliation, the Department may limit the annual reconciliation to focus on incremental changes to the census data file from the previous actuarial valuation, provided no risk is identified that a incomplete or inaccurate reporting of census data may have occurred in previous periods. .
The Department agreed with the finding and recommendation and stated that
The remaining finding relates to the failure to determine the premiums that allow for the establishment of a strong actuarial reserve for the community college health insurance program.
We will review the Department’s progress in implementing our recommendation during our next financial audit.
The auditors have prepared the Department’s financial statements as of and for the year ended
This financial audit was carried out by
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The report is published at http://www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/CMS/FY21-CMS-Fin-Digest.pdf