REPORT DIGEST


OFFICE OF THE COMPTROLLER
FISCAL OFFICER RESPONSIBILITIES


FINANCIAL AND COMPLIANCE AUDIT
For the Year Ended:
June 30, 1996


Summary of Findings:

Total this audit 1
Total last audit 1
Repeated from last audit 1




Release Date:
May 30, 1997







State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

  • The Office of the Comptroller has needed to make significant upgrades to the CUSAS State accounting system to reduce certain inefficiencies. When the system was designed 22 years ago, certain technological advances were not available, but now they should be utilized to increase efficiency in providing services to all agencies.
{Financial Information and Activity Measures are summarized on the next page.}

 





STATE COMPTROLLER'S OFFICE
AUDIT OF TRADITIONAL BUDGETARY FINANCIAL REPORT
AT JUNE 30, 1996



The State Comptroller is the Honorable Loleta Didrickson.

 

(In Thousands)

TRADITIONAL FUND GROUPS

NO. OF
FUNDS

CASH
BALANCES

BUDGETARY
BALANCES*

APPROPRIATED FUNDS -
 
 
 
General Funds
Highway Funds
Income Funds
Special State Funds
Bond Financed Funds
Debt Service Funds
Federal Trust Funds
Revolving Funds
State Trust Funds

4
7
12
262
8
4
87
10
27

$425,653
701,359
52,131
993,553
196,922
392,353
115,103
43,602
146,350

$(292,379)
578,141
1,386
560,332
196,881
376,290
(134,249)
6,873
82,316

Sub-total

421

$3,067,026

$1,375,591



NON-APPROPRIATED FUNDS -

 
 
 
Federal Trust Funds
State Trust Funds

15
100

$17,524
943,108

$16,236
716,616

Sub-total

115

$960,632

$732,852

GRAND TOTAL - ALL FUNDS

536

$4,027,658

$2,108,443

 

* Budgetary Balances represent the balances remaining after reduction of Cash Balances at June 30, 1996 by expenditures made during the 1996 lapse period ending September 30, 1996























Antiquated Accounting System

INTRODUCTION

Our 1996 audit of the Comptroller's Fiscal Officer Responsibilities is presented in two parts. The compliance part, with our finding and recommendation, is presented in one document. The financial part, with our opinions on the budgetary financial statements, is presented in the State Comptroller's "Illinois Traditional Budgetary Financial Report." Our unqualified opinion on the Statewide financial statements prepared in accordance with generally accepted accounting principles is contained in the separately issued Comprehensive Annual Financial Report.

COMPLIANCE AUDIT FINDING, CONCLUSION,
AND RECOMMENDATION

NEED TO UPGRADE STATE ACCOUNTING SYSTEM

The Comptroller's Office needs to make significant upgrades to its CUSAS (Comptroller's Uniform Statewide Accounting System) procedures to reduce inefficiencies. CUSAS was developed in 1974 and has been in need of revision for many years. The CUSAS accounting system design and reporting capabilities, and its computer, software and telecommunications environment are now over twenty years old. They are obsolete and inefficient, and have, for a number of years, been incapable of responding to all of the needs of State government. The Comptroller has acknowledged that the deficiencies and risks of CUSAS constitute a material weakness in internal fiscal and administrative controls. We have recommended enhancements to CUSAS since 1984.

During fiscal year 1996, the Office processed over 16,300,000 warrants or payments which totaled over $36,635,000,000. Due to the magnitude of the Office's accounting responsibilities, there is a risk that a physical breakdown of the accounting system would suspend the Office's ability to perform its fiscal duties and would have very serious consequences.

System inefficiencies we noted include the extra costs necessary to process certain types of expenditure documents. For example, multiple invoice-vouchers have had to be prepared and additional warrants processed when an expenditure relates to multiple appropriation line items. Also, a more efficient warrantless process is not being utilized to settle obligations between State agencies or to process agencies' transactions with various State revolving funds.

In addition, the State has over 85 different sets of accounting ledgers, since a majority of the 110 State agencies, boards, and commissions has its own. Each reporting division has developed, implemented and maintained a separate automated system because the existing CUSAS system has not supported its needs. However, all agencies have also participated in CUSAS, requiring multiple data entry and paper processing. This was necessary because data was not electronically transferred to CUSAS, yet the agencies' accounting systems have had to reconcile to CUSAS. (Finding 1, page 9)

We recommend the Office continue its efforts to modify or update the CUSAS Statewide accounting system to correct its material weaknesses and to reduce its technological deficiencies so Statewide fiscal operations may be improved.

Comptroller's officials stated that they agree and on July 1, 1997, they plan to implement a new Statewide Accounting Management System (SAMS). This accounting information system is designed to take advantage of more recent technology and should replace the old Comptroller's Uniform Statewide Accounting System (CUSAS). They feel that implementation of the SAMS system will demonstrate their Office's determination to fulfill its statutory responsibilities and will make great progress in resolving this audit finding.

Comptroller's officials stated further that SAMS will position the State's central accounting system to respond to its changing role as defined from time to time by the General Assembly and to participate with the business community as new practices are developed to be more efficient.

Mr. Michael Moody, Director of Internal Audits, provided the Office response to our finding and recommendation.

FINANCIAL AUDIT OPINIONS

Our auditors stated the traditional budgetary financial statements present fairly the fund balances and receipts and expenditures at June 30, 1996, relating to the Fiscal Officer Responsibilities of the Comptroller.

In addition, the Comptroller has issued a separate Comprehensive Annual Financial Report which has additional details on the financial activities of State agencies and funds. Our auditors report that the financial statements in the Comprehensive Annual Financial Report for the year ended June 30, 1996 are fairly presented.



_____________________________________
WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Pandolfi, Topolski, Weiss & Co., Ltd. were our special assistant auditors.