REPORT DIGEST

EDUCATIONAL LABOR RELATIONS BOARD

Compliance Examination
For the Two Years Ended June 30, 2015

Release Date:  January 21, 2016

FINDINGS THIS AUDIT:  3

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

FINDINGS LAST AUDIT: 4

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

• (15-1) The Board failed to employ
the minimum number of staff as
required by the Educational Labor
Relations Act.
• (15-2) The Board lacks an adequate
segregation of duties in the areas of
expenditure control, State property,
payroll, 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
8 attorneys and 5 investigators.  The
Board employed 6 attorneys and 1
investigator during FY14 and FY15.
(Finding 1, page 9)  This finding has
been repeated since 2011.

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.  (For previous Board response,
see Digest Footnote #1.)

INADEQUATE SEGREGATION OF DUTIES

The Board had an inadequate
segregation of duties in the areas of
expenditure control, State property,
payroll, 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
has been repeated since 2007.

We recommended the Board implement
procedures to ensure it maintains
effective internal control over the
record keeping and accounting duties
concerned with expenditure control,
State property, payroll, and receipts
processing.

The Board agreed with the
recommendation and stated the
inadequate segregation of duties
finding continues because the Board
has neither authorized headcount nor
adequate funding to hire an assistant
fiscal officer or accountant.  (For
previous Board response, see Digest
Footnote #2.)

OTHER FINDING

The remaining finding pertains to
inadequate controls over equipment.
We will follow up on the Board’s
process towards the implementation of
our recommendations in our next
engagement.

ACCOUNTANT’S OPINION

We conducted a compliance examination
of the Board for the two years ended
June 30, 2015 as required by the
Illinois State Auditing Act.  The
accountants stated the Board complied,
in all material respects, with the
requirements described in the report.

FRANK J. MAUTINO
Auditor General

FJM:jv

AUDITORS ASSIGNED

This examination was performed by the
Office of the Auditor General’s staff.

DIGEST FOOTNOTES

#1 – FAILURE TO EMPLOY REQUIRED STAFF

2013:    The Board agrees with this
finding, however, 115 ILCS 5/5(f)
states that the requirement for hiring
is, “subject to the annual
appropriation by the General
Assembly”.  To date, no funds have
been appropriated to hire additional
staff.

 #2 - INADEQUATE SEGREGATION OF DUTIES

2013:    The Board agrees with this
finding, however, the inadequate
segregation of duties finding
continues because the Board has no
authorized headcount or funding to
hire an assistant fiscal officer or
accountant.