REPORT DIGEST

EDUCATIONAL LABOR RELATIONS BOARD

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2013


Release Date:   January 23, 2014

Summary of Findings:
Total this audit: 4
Total last audit:  2
Repeated from last audit: 2

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL

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SYNOPSIS

• The Educational Labor Relations Board did not
employ the minimum number of staff as required
by the Educational Labor Relations Act.

• The Educational Labor Relations Board had an
inadequate segregation of duties in the areas of
payroll, expenditure control, State property,
and receipt processing.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO EMPLOY REQUIRED STAFF

The Educational Labor Relations Board (Board)
did not employ the minimum number of staff as
required by the Educational Labor Relations Act
(Act).   The Board did not employ a minimum of
eight attorneys and five investigators.  As of
June 30, 2013 the Board employed six attorneys
and one investigator. (Finding 1, page 9)

We recommended the Board comply with the Act’s
requirements for attorneys and investigators or
seek legislative remedy to the statutory
requirements.

The Board agreed with the recommendation and
stated this requirement was subject to the
Board’s annual appropriation by the General
Assembly and to date, no funds have been
appropriated to hire additional staff.

INADEQUATE SEGREGATION OF DUTIES

The Board had an inadequate segregation of
duties in the areas of payroll, expenditure
control, State property, and receipt processing.
We noted the following:

• One person had the authority to prepare and
approve vouchers, maintain accounting records,
enter transactions into the accounting system,
and perform monthly reconciliations.

• One person had the authority to approve all
property purchases, tag all inventory, maintain
the property records, and complete the quarterly
reports of State property.

• One person had the authority to prepare
payroll, make adjustments to payroll, approve
payroll, and distribute payroll stubs.

• One person had the authority to prepare
receipts, deposit receipts, and maintain the
receipts ledger. (Finding 2, pages 10-11)   This
finding was first reported in 2007.

We recommended the Board implement procedures to
ensure they maintain effective internal control
over the record keeping and accounting duties
concerned with expenditures, property control,
payroll, and receipts.

The Board agreed with the recommendation and
stated the inadequate segregation of duties
finding continues because the Board has no
authorized headcount or funding to hire an
assistant fiscal officer or accountant.   (For
previous Board response, see Digest Footnote #
1.)

OTHER FINDINGS

The remaining findings pertain to: (1)
inadequate controls over equipment and (2)
failure to implement provisions of the Identity
Protection Act. We will review the Board’s
process towards the implementation of our
recommendations in or next engagement.

AUDITORS’ OPINION

We conducted a compliance examination of the
Board as required by the Illinois State Auditing
Act.  The Board has no funds that require an
audit leading to an opinion of financial
statements.

WILLIAM G. HOLLAND
Auditor General

WGH:jv

AUDITORS ASSIGNED

The examination was conducted by staff of the
Office of the Auditor General.

DIGEST FOOTNOTES

#1 - INADEQUATE SEGREGATION OF DUTIES

2011:    The Board agreed with the
recommendation and stated the inadequate
segregation of duties finding continues because
the Board has no authorized headcount or funding
to hire an assistant fiscal officer or
accountant.