REPORT DIGEST

DUQUOIN STATE FAIR

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2019

Release Date:  April 22, 2020

FINDINGS THIS AUDIT:  10

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

FINDINGS LAST AUDIT: 10

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

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, Iles Park
Plaza, 740 E. Ash Street, Springfield, IL
62703
(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

• (19-1) The Fair was not in compliance with
the Illinois Horse Racing Act of 1975.
• (19-2) The Fair did not comply with the
State Comptroller Act concerning timeliness of
reimbursement to the Treasurer for funds
provided to operate an imprest account for
making change for DSF activities.
• (19-3) Fair management did not demonstrate
adequate controls over complimentary
grandstand tickets at the 2019 and 2018 Fairs.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE ILLINOIS HORSE RACING
ACT

The DuQuoin State Fair (DSF) was not in
compliance with the Illinois Horse Racing Act
of 1975 (Act).

During testing, we noted DSF provided only a 2
day racing program in Fiscal Year 2019 and
2018.  DSF is required to provide at least a 5
day racing program to be conducted at the
State Fair each year. (Finding 1, page 12)
This finding has been repeated since 2011.

We recommended the DSF hold a 5 day racing
program or seek legislative remedy.

Fair officials accepted the finding and stated
legislative remedy was obtained when the Act
was amended by P.A. 101-157.

NONCOMPLIANCE WITH THE STATE COMPTROLLER ACT

The DuQuoin State Fair (DSF) did not comply
with the State Comptroller Act concerning
timeliness of reimbursement to the Treasurer
for funds provided to operate an imprest
account for making change for DSF activities.

In Fiscal Year 2019 and 2018, the DSF failed
to reimburse the Treasurer within 5 days of
the termination of the fair, as outlined by
the Act.

The 2019 fair ended September 2, 2019;
however, a reimbursement check was not issued
to the Illinois State Treasurer until November
13, 2019, resulting in a late reimbursement of
66 days.

The 2018 fair ended September 3, 2018;
however, a reimbursement check was not issued
to the Illinois State Treasurer until
September 12, 2018, resulting in a late
reimbursement of 2 days. (Finding 2, page 13)

We recommended the DSF ensure the Treasurer is
reimbursed within 5 days of the termination of
the fair.

Fair officials accepts the finding and stated
they have already coordinated internally
regarding changes to the way the reimbursement
process is handled to avoid a repeat of this
finding.

INADEQUATE CONTROLS OVER COMPLIMENTARY
GRANDSTAND TICKETS

The DSF did not demonstrate adequate controls
over complimentary grandstand tickets during
the 2019 and 2018 Fairs.

During our testing of complimentary tickets
provided for grandstand events, we noted the
following:

• For 2019, the complimentary ticket issuance
records for 5 of 7 entertainers were
inaccurate.  DSF records had a net
overstatement of 4 complimentary tickets.

• For 2018, the complimentary ticket issuance
records for 6 of 7 entertainers were
inaccurate.  DSF records had a net
understatement of 34 complimentary tickets.
(Finding 3, pages 14-15)

We recommended the DSF maintain a record of
the distribution of complimentary grandstand
tickets as required by the Illinois
Administrative Code.

Fair officials accepted the finding and stated
the complementary ticket process for 2020 will
be different.  The tickets will be approved by
the Ticket Office Manager, then taken to the
Bureau Chief for verification, and signed off
to verify the tickets match.

OTHER FINDINGS

The remaining findings pertain to inadequate
controls over credentials, space rentals,
camping revenues, gates and parking admissions
and grandstand ticket office receipts, and
weaknesses in contract administration and
receipt reconciliations.  We will review the
DSF’s progress towards the implementation of
our recommendations in our next compliance
examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the DSF for the two years ended
September 30, 2019, as required by the
Illinois State Auditing Act.  The accountants
stated the DSF complied, in all material
respects, with the requirements described in
the report.
This compliance examination was conducted by
Adelfia LLC.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

FJM:skm