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 The report identifies five proactive items the Treasurer’s Office
has launched since taking office in January. It also includes an
independent performance review by Plante Moran that identifies
inherited challenges and potential resolutions.
“My plan for the next four years focuses on what the State
Treasurer’s Office can do to ensure working families have the tools
they need to succeed,” Frerichs said. “We must make sure everyone
has the education, access, and opportunity to achieve their dreams.”
The action plan to restore faith and trust in the Treasurer’s office
includes:
- Frerichs issued Executive Order 15-01 that created an Employee
Bill of Rights. The action set clear expectations that prohibit
political activity while at work or using taxpayer supported
equipment. The order also outlined a reporting mechanism for workers
who felt pressured to do political work. The action was necessary in
the wake of allegations that political work and soliciting donations
were expected during a previous administration.
- The Treasurer’s Office is introducing Secure Choice, the
retirement-investment tool for workers whose employers do not
provide one. More than half of all Illinois workers lack access to
employer-based retirement plans. Changing this dynamic will allow
workers to retire with dignity and lessen reliance on public
assistance.
- Financial education programs are being re-established,
especially for young people. The programs need to use innovative
techniques to impart the best tools to manage money, create wealth,
and plan for the future.
- The Treasurer’s Office plans to ensure families from every
socioeconomic background receive information to start saving for
their children’s college or trade school. Studies show that students
who know they have a college savings plan are seven times more
likely to attend. Educational attainment also is the best predictor
of employability. Obtaining a college degree or trade school
certification shows employers a worker that can adapt to changing
market forces. This helps grow our economy.
- Issued a Request for Proposal (RFP) for firms interested in
managing the 529 Bright Directions program. The RFP includes
weighted evaluation criteria for bidders who are Illinois-based and
embrace diversity through hiring minorities, women, persons with
disabilities and Veterans. Illinois is believed to be the first in
the nation to include such scoring in a 529 RFP.
Through independent analysis and staff interviews, Plante Moran
identified a number of existing challenges facing the office. Among
these challenges:
- A “clout-heavy” paid internship program with no formal
written policies and procedures for the recruitment or
management of intern participants. The internship program also
lacked performance monitoring mechanisms.
- The college savings scholarship program, which creates
scholarship accounts awarded by the State Treasurer, is in
desperate need of a complete overhaul. Although hundreds of
scholarships have been awarded, these scholarships are absent of
basic rules governing proper record keeping, management, and
distribution. New policies and procedures need to be set to
restore the integrity of the scholarship program and ensure a
fair, transparent process.
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- The State Treasurer is mandated to manage the state’s
unclaimed property. Reviews from previous years identified
inadequate inventory controls, noted a limited view of inventory
for security cameras, and underscored issues relating to the
timeliness of recording property, advertising property for
auction, responses to filing extension requests, and sales of
securities.
- Home-based workers lack adequate supervision, incur higher
travel reimbursement costs than office-based employees, and are
not geographically located effectively.
The Treasurer’s Office continues to assist in the defense of
a lawsuit filed against the previous administration. Frerichs is
not a named party to the suit that alleges a work atmosphere
with pressure to do political work. The defense of the lawsuit
has precluded Frerichs from releasing an internal investigative
report conducted as a result of the allegations. Frerichs
remains committed to releasing the report at the conclusion of
the lawsuit, or when disclosure would not risk public tax
dollars, whichever comes first.
“A 100-day report is not a final report card. It is a high-level
review to identify what we can build upon and what needs to be
improved,” Frerichs said. “Although troubled by the negative
findings, I am encouraged that there are clearly defined paths
to improve education, access, and opportunity to assist working
families. Cooperating with people and local governments so they
know how these programs can assist their communities is the
first step I can take to help return Illinois to prosperity.”
“I also must thank Plante Moran. Their diligence and attention
to detail were invaluable. Their work will lead to greater
efficiencies, save taxpayer money, and help us succeed in
serving the families of Illinois.”
To view the 100 day report or the Plante Moran performance
review, visit
www.illinois treasurer.gov.
About Plante Moran
Plante Moran is a large, Midwestern-based accounting and
consulting firm with offices in Illinois, Michigan and Ohio. It
is ranked 13th nationally in size and 6th largest in the state
of Illinois. The company specializes in various industries,
including government. It has a deep understanding of the unique
accounting, financial, operational and technology needs of
government organizations.
About the Illinois Treasurer
The Illinois Treasurer is the state’s chief investment officer
and Frerichs is a Certified Public Finance Officer. He protects
consumers by encouraging savings plans for college or trade
school, increasing financial education among all ages, and
removing barriers to a secure retirement. As the state’s Chief
Investment Officer, he actively manages approximately $25
billion. Currently, the portfolio includes $13 billion in state
funds, $7 billion in college savings plans, and $5 billion on
behalf of state and local governments. The investment approach
is conservative to ensure the preservation of principal and
returns $28 to the state for every $1 spent in operations. The
Treasurer’s Office predates Illinois’ incorporation in 1818.
Voters in 1848 chose to make it an elected office.
[Office of the Illinois State
Treasurer Michael W. Frerichs] |
