From Illinois News Network
There were inaccuracies in the Illinois Department of Revenue’s year-end financial report for the fiscal year that ended June of last year. That’s according to an Auditor General report published last week.
The Auditor’s report says the Department of Revenue overstated more than $25.5 million in income tax revenue in Fiscal Year 2013 while in FY 2014 income tax revenue was overstated by nearly $25 million.
These and other errors have the potential to misstate financial statements can have impacts on the statewide financial statements, according to the report.
The Auditor says the findings have been repeated since 2012.
Errors possible in Revenue’s processing of sales and use tax receipts
Additional risk of error and miscommunication exists in the Department of Revenue when it comes to processing sales and use tax receipts.
The report published last week says that the Department relies on a manual paper process when amassing tax information from several sources with complex calculations.
The Auditor also says the current cash allocation process limits accuracy of individual fund’s cash balance. All combined the Auditor says there could be errors in Revenue’s deposits to the State Treasury which could lead to errors for statewide financial reporting.
The report also says Revenue did not implement controls and safeguards over processing taxpayer information, and the Department’s Internal Audit didn’t comply with the Fiscal Control and Internal Auditing Act.