REPORT DIGEST
DEAF AND HARD OF HEARING COMMISSION
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
Release Date: December 21, 2011
Summary of Findings:
Total this audit: 2
Total last audit: 3
Repeated from last audit: 1
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887
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SYNOPSIS
• The Deaf
and Hard of Hearing Commission (Commission) did not maintain sufficient
controls over the recording
and reporting of its State property.
• The
Commission did not maintain adequate controls over its contractual service
expenditures.
FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS
PROPERTY CONTROL WEAKNESSES
The Deaf
and Hard of Hearing Commission (Commission) did not maintain sufficient
controls over the recording and reporting of its State property. During testing we noted the following:
• The
Commission’s property and equipment expenditures processed by the Office of the
Comptroller (Comptroller) did not reconcile to additions recorded on the
Quarterly C-15 reports. Property and
equipment expenditures totaling $2,148 and shipping and installation charges of
$114 were never recorded on the Commission’s property listing or the C-15’s submitted to the Comptroller.
• The
Commission did not timely add and remove equipment from its property records.
• The
Commission filed the Fiscal Year 2010 Annual Real Property Utilization Report
326 days late. (Finding 1, pages 8-9)
We
recommended the Commission strengthen controls over the recording and reporting
of its State property by ensuring equipment is recorded at its proper cost and
is added to inventory records in a timely manner. We also recommended the Commission thoroughly
review reports prepared from internal records for accuracy before submission to
the Comptroller and submit its Annual Real Property Utilization Report
timely.
Commission
management accepted the finding and recommendation and stated they will review
their controls to ensure equipment is properly and timely recorded and all
required reports are submitted timely.
INADEQUATE CONTROLS OVER CONTRACTUAL SERVICES EXPENDITURES
The
Commission did not maintain adequate controls over its contractual services
expenditures.
The
Commission entered into a contract with a vendor to provide catering services
for the Commission’s annual conference which exceeded $10,000. However, the Commission did not file the
contract with the Office of the Comptroller (Comptroller) and did not prepare
and submit a Contract Obligation Document (COD) with the Comptroller which is
used to obligate the funds for the contract.
The Commission then attempted to submit a voucher totaling $10,524.82 to
the Comptroller for payment. When the
Comptroller subsequently rejected the voucher for payment because no COD was on
file, the Commission submitted two vouchers for $5,262.41 to the Comptroller
for payment resulting in the stringing of payments to avoid the COD filing
requirement. (Finding 2, page 10)
We
recommended the Commission ensure contracts exceeding $10,000 are filed with
the Comptroller within 15 days of execution and proper documentation to
obligate funds is submitted to the Comptroller prior to submitting the vouchers
for payment.
Commission
management accepted the finding and recommendation and stated they have
implemented controls to ensure compliance in the future.
AUDITORS’ OPINION
We
conducted a compliance examination of the Commission as required by the
Illinois State Auditing Act. The
Commission has no funds that require an audit leading to an opinion of
financial statements.
WILLIAM G. HOLLAND
Auditor General
WGH:JSC
AUDITORS ASSIGNED
This examination was performed by the Office of the Auditor General’s staff.