REPORT DIGEST

 

ILLINOIS EMERGENCY MANAGEMENT AGENCY

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

 

Summary of Findings:

Total this audit                          6

Total last audit                          8

Repeated from last audit           4

 

Release Date:

March 9, 2006 

 

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

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

is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

SYNOPSIS

 

 

¨      The Agency made payments for efficiency initiative billings from improper line item appropriations.

 

¨      Employee performance evaluations were not completed in a timely manner.

 

¨      The Department of Nuclear Safety, which merged with the Illinois Emergency Management Agency, did not seek repayment from an employee who received a single lump sum payment of $48,299 for accrued vacation and sick leave upon retirement. 

 

¨      A former State Officer of the Department of Nuclear Safety who was transferred to a new position not requiring the advice and consent of the Senate on July 1, 2003 at the Illinois Emergency Management Agency, continues to receive retirement annuity payments prohibited by the Pension Code.

 

¨      The Agency did not incorporate statutorily required information into their applications for permits for the transport of low-level radioactive waste.

     

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the next page.}

 

 


ILLINOIS EMERGENCY MANAGEMENT AGENCY

                                                     COMPLIANCE EXAMINATION

                                                For the Two Years Ended June 30, 2005

 

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

     Total Expenditures (All Funds).................

 

$105,273,939

$58,489,720

$61,678,507

     OPERATIONS TOTAL...............................

         % of Total Expenditures......................

$99,791,865

94.79%

$53,294,338

91.12%

$47,651,224

77.26%

         Personal Services.................................

            % of Operations Expenditures.........

            Average No. of Full-time Employees

$13,471,586

45.68%

250

$12,842,813

41.78%

250

$14,899,790

31.03%

247

         Other Payroll Costs (FICA, Retirement).

            % of Operations Expenditures.....

$5,580,405

10.71%

$4,518,488

7.17%

$4,852,783

6.61%

         Contractual Services..........................

            % of Operations Expenditures.........

$1,413,327

6.16%

$3,070,902

6.01%

$2,692,754

4.29%

         All Other Operations Items.................

             % of Operations Expenditures........

 

$79,326,547

37.45%

$32,862,135

45.04%

$25,205,897

58.07%

     PERMANENT IMPROVEMENTS TOTAL..

         % of Total Expenditures......................

 

$436,600

.42%

$0

0%

$0

0%

     GRANTS AND REFUNDS TOTAL............

         % of Total Expenditures......................

 

$3,760,434

3.57%

$5,066,964

8.66%

$13,852,038

22.46%

       NON-APPROPRIATED FUNDS..............

% of Total Expenditures..............................

 

$1,285,040

1.22%

$128,418

.22%

$175,245

.28%

     Cost of Property and Equipment...............

$24,882,000

$23,607,000

$25,975,000

 

AGENCY DIRECTOR

During Audit Period:    William C. Burke

     Currently:  William C. Burke

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency did not receive guidance or documentation with the billings from CMS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency initiative payments totaled $733,294 in FY04 and FY05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repeat finding since 1997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


A lump sum payment of $48,299 was made to an employee who returned to work with the Department within 2 days after taking retirement

 

 

 

 

 

 

 

 

 

Opinion requested from the Attorney General on April 5, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement annuity payments were made that are prohibited by the Pension Code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opinion requested from the Attorney General on October 7, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Agency is not in compliance with the Illinois Low-Level Waste Management Act

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency continues to seek legislation to amend the law

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

PAYMENTS WERE MADE FOR EFFICIENCY INITIATIVE BILLINGS FROM IMPROPER LINE ITEM APPROPRIATIONS

 

      The Agency made payments for efficiency initiative billings from improper line item appropriations.

Public Act 93-0025, in part, outlines a program for efficiency initiatives to reorganize, restructure, and reengineer the business processes of the State.  The State Finance Act details that the amount designated as savings from efficiency initiatives implemented by the Department of Central Management Services (CMS) shall be paid into the Efficiency Initiatives Revolving Fund.  The Act further requires State agencies to pay these amounts from line item appropriations where cost savings are anticipated to occur.

 

            The Agency did not receive guidance or documentation with the FY04 billings from CMS detailing from which line item appropriations savings were anticipated to occur.  While Agency staff reported, for the FY04 billings, they had reviewed documentation from the Governor’s Office of Management and Budget (GOMB) and a letter from the Executive Office of the Governor, none of this documentation provided guidance on where savings were anticipated to occur.

 

            The Agency made payments in FY04 for billings not from line item appropriations where the cost savings were anticipated to have occurred but from line items that had available funds.  The Agency methodology for the FY04 payments was spread across multiple funds and multiple line items.  The Agency paid:

 

·        $200,180 toward procurement and information technology billings from a lump sum appropriation to the division of environmental safety.

·        $85,000 toward the information technology initiative billing from a lump sum appropriation to the division of radiation safety.

·        $30,000 toward the procurement billing from a General Revenue Fund lump sum appropriation for “Training and Education” in federally-assisted programs.

·        $18,500 in procurement efficiency billings in FY04 from travel line item appropriations.

 

      The Agency paid a total of $733,294 for the FY04 and FY05 efficiency initiative billings.  (Finding 1, pages 9-12)

 

      We recommended that the Agency only make payments for efficiency initiative billings from line item appropriations where savings would be anticipated to occur.  Further, the Agency should seek an explanation from the Department of Central Management Services as to how savings levels were calculated, or otherwise arrived at, and how savings achieved or anticipated impact the Agency’s budget.

 

      The Agency accepted our recommendation and stated that they will make future savings payments from lines from which savings are anticipated to occur.  In addition, the Agency will request documentation from CMS for any savings payments that are requested.

 

 

NEED TO COMPLETE EMPLOYEE PERFORMANCE EVALUATIONS ON A TIMELY BASIS

 

The Agency did not conduct employee performance evaluations on a timely basis.  During our testing, we noted 21 of 50 (42%) employee personnel files did not contain a current performance evaluation or their performance evaluation was not performed timely.  The Agency is required by the Illinois Administrative Code to perform an employee evaluation not less than annually.  (Finding Code 2, pages 13-14)  This finding has been repeated since 1997.

 

      We recommended the Agency comply with the Illinois Administrative Code and Agency policies by completing and approving annual performance evaluations in a timely manner.  (For previous Agency response see Digest Footnote 1.)

      Agency officials concurred stating that in January 2005, the Personnel Officer instituted new procedures on notification of evaluations due.

 

 

QUESTIONABLE VACATION AND SICK LEAVE PAYOUT

 

      The Department of Nuclear Safety (Department) which merged with the Illinois Emergency Management Agency (Agency) effective July 1, 2003 did not seek repayment from an employee who received a single lump sum payment of $48,299 of accrued vacation and sick leave upon retirement.

 

      An employee received a single lump sum payment of accrued vacation and sick leave as a result of the individual’s early retirement.  However, the individual then returned to work with the Department two days after his early retirement and did not repay the amount previously received as a lump sum payment.

 

      According to the State Finance Act (30 ILCS 105/14a(c)), if an “employee returns to employment in any capacity with the same agency or department within 30 days of the termination of his or her previous State employment, the employee must, as a condition of his or her new State employment, repay the lump sum amount within 30 days after his or her new State employment commences.”

 

      According to Agency personnel, a formal written opinion from the Attorney General was requested on April 5, 2004, however, the matter is still pending with the Attorney General.  (Finding 3, pages 17-18) 

 

      We recommended the Agency pursue its request with the Attorney General for a formal, written opinion to determine whether it has any obligation to recoup State funds paid from appropriations.

 

      The Agency accepted our recommendation and indicated that on April 5, 2004, the Agency requested a formal, written opinion of the Attorney General concerning this finding and the Agency continues to monitor this request.  However, as of the date of the response, the matter is still pending with the Attorney General.

 

 

RETIREMENT ANNUITY PAYMENTS

 

      A former State Officer of the Department of Nuclear Safety (Department), who was transferred to a new position on July 1, 2003 at the Illinois Emergency Management Agency (Agency) without the advice and consent of the Senate, continues to receive retirement annuity payments prohibited by the Pension Code. 

 

      The individual retired from the Department as Manager of the Office of Nuclear Facility Safety on February 14, 2003 and began receiving retirement annuity payments from the State Employees Retirement System (SERS) on April 23, 2003.  On February 16, 2003 he was appointed Director of the Department and was confirmed in that position with the advice and consent of the Senate on February 28, 2003.  At the time of his appointment as a State Officer, the individual elected not to participate in the SERS in his new position.  However, he continued to draw a pension from SERS related to his prior position. 

 

      Subsequently, by operation of the Governor’s Executive Order #12, effective July 1, 2003, the Department was abolished and its functions moved to the Illinois Emergency Management Agency (IEMA).  Section II (B) of  Executive Order #12 provided that “the Director of Nuclear Safety shall be transferred to the Illinois Emergency Management Agency and be made the Assistant Director of the Illinois Emergency Management Agency.”  The individual’s transfer to his current position as Assistant Director of IEMA was not subject to the advice and consent of the Senate.     

 

      The Pension Code (40 ILCS 5/14-111) prohibits an annuitant who re-enters the service of a department and receives compensation on a regular payroll from simultaneously receiving a retirement annuity.  However under Section 14-103.05(b)(3) of the Pension Code, the term employee does not include “…any person appointed by the Governor with the advice and consent of the Senate unless that person elects to participate in this system.”  

 

      The individual stated he believed his transfer to Assistant Director of the Agency did not change his status as excluded from the definition of employee under the Pension Code.  Therefore, he believed he was entitled to continue to receive his monthly retirement annuity.  (Finding 5, pages 19-20) 

 

      We recommended the individual return the retirement annuity payments received since July 1, 2003 to the State Pension system or continue to seek legislative remedy confirming his current position as a State Officer with the advice and consent of the Senate.  

 

      Agency officials accepted our recommendation and indicated that on October 7, 2004, a letter was sent to the Attorney General asking that this issue be added to the Agency’s original request for an opinion that was requested on April 5, 2004.  The Agency continues to monitor this request, however, as of the date of this response, the matter is still pending with the Attorney General.

 

      In an Auditor’s Comment we noted that we do not believe that passage of Senate Bill 3201 (P.A. 93-1029) resolved the issue concerning the Assistant Director's simultaneous receipt of a paycheck and a pension.  Public Act 93-1029 provides an advice and consent process for all subsequent Assistant Directors of the Department but not for the current Assistant Director.  While Senate Bill 3201 was approved by a majority of the Senate members, this vote did not conform with Executive Appointment procedures set forth in the Senate Rules and, therefore, does not constitute advice and consent for the current Assistant Director of the Department.  While the advice and consent procedures were followed with regard to the person's previous position as Director of the Department of Nuclear Safety, we do not believe they were followed with regard to the person's current position as Assistant Director of IEMA.  While, because of P.A. 93-1029, advice and consent by the Senate is not required for this person to lawfully occupy the position of Assistant Director of IEMA, advice and consent by the Senate is required for this person to fall into an exception in the Pension Code permitting him to draw both a paycheck and a pension simultaneously (40 ILCS 5/14-103.05 (b) (3)).  We continue to believe that this individual may not simultaneously draw both a payroll check and a pension unless and until he is confirmed in his current position by the Senate.

 

 

APPLICATIONS FOR PERMITS TO TRANSPORT LOW-LEVEL RADIOACTIVE WASTE

     

      The Agency has not incorporated information required by statute into their applications for permits to allow individuals to transport low-level radioactive waste.

 

      The Illinois Low-Level Waste Management Act (420 ILCS 20/9(c)) requires that each application for a permit shall contain: 

 

1.                  The estimated quantities and types of wastes to be transported to a facility located in Illinois;

2.                  The procedures and methods used to monitor and inspect the shipments to ensure that leakage or spills do not occur;

3.                  The timetables according to which the wastes are to be shipped;

4.                  The qualification and training of personnel handling low-level radioactive waste; and

5.                  The use of interim storage and transshipment facilities.

 

      According to Agency personnel, they are attempting to amend the requirements of the statute so the law will be more applicable for the Agency’s operations.  (Finding 6, pages 21-22) 

 

      We recommended the Agency comply with the Illinois Low-Level Waste Management Act or continue to seek legislative remedy to the statutory requirement

 

      Agency officials accepted our recommendation and indicated that they are continuing to seek legislative remedy. 

 

OTHER FINDING

 

      The remaining finding is less significant and is reportedly being given attention by the Agency.  We will review the Agency’s progress towards the implementation of our recommendation in our next examination.

 

      Mr. Dennis Miner, Bureau of Finance, provided responses to the findings for the Illinois Emergency Management Agency. 

 

 

 

AUDITORS’ OPINION

 

      We conducted a compliance examination of the Agency as required by the Illinois State Auditing Act.  We have not audited any financial statements of the Agency for the purpose of expressing an opinion because the Agency does not, nor is it required to, prepare financial statements.

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:TLD:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

      De Raimo Hillger & Ripp were our special assistant auditors for this examination.

 

 

DIGEST FOOTNOTE

 

#1 NEED TO COMPLETE EMPLOYEE PERFORMANCE EVALUATIONS ON A TIMELY BASIS – PREVIOUS AGENCY RESPONSES

 

2003:     Agree.  Agency will employ procedures to complete evaluations timely.  At times, employees may be involved in disaster response making it difficult for evaluations to be completed on a timely basis.  All staff evaluations were completed.  Merit compensation employees receiving pay increases were compensated at the increased pay level effective back to the date the raise was to be given, regardless of the timing of the evaluation.  Bargaining unit employees received their pay increase independent of the date of evaluation.