REPORT DIGEST

STATE BOARD OF ELECTIONS

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit 2

Total last audit 3

Repeated from last audit 1

Release Date:

February 16, 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 is also available on

the worldwide web at

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

SYNOPSIS

¨ The Board failed to identify the gross receipts, expenses, and net proceeds relating specifically to raffles as required by the Raffles Act.

¨ The Board failed to require its employees to submit time sheets documenting the time spent each day on official State business.

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

STATE BOARD OF ELECTIONS

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2005

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

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

$15,722,158

$18,167,542

$7,185,280

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

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

$12,329,475

78%

$15,971,298

88%

$4,996,297

70%

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

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

Average No. of Employees.............

$2,709,607

22%

$2,588,500

16%

$2,977,826

60%

Other Payroll Costs (FICA, Retirement)

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

$733,585

$534,394

$634,128

13%

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

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

$633,658

$1,203,580

$1,108,008

22%

Lump Sums...........................................

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

$7,899,151

64%

$11,354,024

71%

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

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

$358,474

$290,800

$276,335

GRANTS TOTAL....................................

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

$3,392,683

22%

$2,196,244

12%

$2,188,983

30%

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

$1,337,359

$1,168,575

$1,088,044

SELECTED ACTIVITY MEASURES

ELECTIONS DIVISION (Not Examined)

FY 2005

FY 2004

FY 2003

· Number of election judge schools requested…...

· Number of election jurisdictions submitting voter registration database files................................

· Number of nominating petitions filed...................

· Number of petition objections filed....................

· Number of petition copy requests received.........

· Number of election publications requested.........

155

479

21,944

103

324

1,435

119

479

30,330

155

477

43,056

AGENCY HEAD

During Examination Period: Mr. Daniel W. White

Currently: Mr. Daniel W. White

Current campaign disclosure report does not specifically identify gross receipts, expenses and net proceeds relating to raffles.

The Board utilizes negative time keeping instead of positive time keeping.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO PROPERLY REPORT RAFFLE RECEIPTS AND DISBURSEMENTS

The State Board of Elections (Board) failed to properly report all receipts and disbursements for raffles benefiting political campaigns.

The current campaign disclosure report used by the Board does not specifically identify the gross receipts, expenses and net proceeds relating specifically to raffles. This form reports the total receipts and disbursements of a political committee, but there is no way to determine which receipts relate to raffles. Currently, there is no reporting mechanism at the Board to obtain information specific to raffles.

Failure to report gross receipts, expenses, and net proceeds from raffles is noncompliance with the Raffles Act. The Raffles Act (230 ILCS 15/8.1) requires political committees licensed to conduct raffles to report the gross receipts, expenses and net proceeds from the raffles to the Board. Furthermore, the distribution of proceeds are required to be itemized as to payee, purpose, amount and date of payment by the political committee. (Finding 1, page 9)

We recommended the Board comply with the Raffles Act in the collection of specific information relating to raffles.

Board officials concurred with the finding and stated that its Campaign Disclosure Division developed revised forms and processes to address the finding. These forms and processes were approved by the Board and implemented in July 2005.

INADEQUATE CONTROLS OVER EMPLOYEE TIMEKEEPING

The Board did not require its employees to periodically submit time sheets documenting the time spent each day on official State business.

The Board employees were required to submit monthly time sheets during the engagement period documenting the time taken (negative reporting) instead of the time spent on official State business (positive timekeeping). (Finding 2, page 10)

We recommended that the Board comply with the State Officials and Employees Ethics Act (5 ILCS 430/5-5) and require employees to periodically submit time sheets documenting the time spent each day on official State business.

Board officials concurred with the finding and stated that the Board has developed a time sheet that reflects the time spent each day on official State business by each Board employee. Implementation was expected shortly.

The Board’s responses were provided by Executive Director, Mr. Daniel White.

AUDITOR’S OPINION

We conducted a compliance examination of the State Board of Elections as required by the Illinois State Auditing Act. We have not audited any financial statements of the Board 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:CML:pp

AUDITORS ASSIGNED

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