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REPORT DIGEST DEPARTMENT OF COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this audit 6 Total last audit 7 Repeated from last audit 4 Release Date: April 1, 2008
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 Attn: Records Manager 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 http://www.auditor.illinois.gov |
SYNOPSIS · The Department did not maintain adequate financial records or prepare accurate accounting reports. · The Department did not meet the procedural time limits set forth when a charge of a civil rights violation had been filed. · The Department did not have adequate controls over voucher processing.
{Expenditures and Activity Measures are summarized on the next page.} |
DEPARTMENT OF HUMAN RIGHTS
For The Two Years Ended June 30, 2007
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EXPENDITURE STATISTICS |
FY 2007 |
FY 2006 |
FY 2005 |
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Total Expenditures (All
Funds).................................. OPERATIONS TOTAL................................................ % of Total
Expenditures............................................. Personal Services....................................................... % of Operations Expenditures.................................. Average No. of
Employees...................................... Other Payroll Costs (FICA, Retirement and Group Insurance).............................................................. % of Operations
Expenditures.................................. Contractual Services................................................... % of Operations
Expenditures.................................. Lump Sums and other Purposes................................... % of Operations Expenditures.................................. All Other Operations Items........................................ % of Operations Expenditures.................................. ·
Cost of Property and
Equipment................................ |
$9,857,339 $9,857,339 100% $6,775,423 68.7% 158 $1,608,649 16.3% $340,577 3.5% $853,795 8.7% $278,895 2.8% $938,896 |
$8,357,013 $8,357,013 100% $6,269,342 75.0% 133 $1,200,103 14.3% $540,276 6.5% $148,797 1.8% $198,495 2.4% $912,973 |
$8,804,022 $8,804,022 100% $6,203,841 70.4% 147 $1,689,759 19.2% $386,797 4.4% $156,440 1.8% $367,185 4.2% $946,262 |
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SELECTED ACTIVITY MEASURES
(Not Examined) |
FY 2007 |
FY 2006 |
FY 2005 |
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Open Discrimination Cases
as of 6/30................................... |
3,412 |
3,131 |
2,779 |
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New Discrimination Cases
Filed........................................... |
3,385 |
3,555 |
3,791 |
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Cases Completed during
year............................................... |
2,897 |
3,240 |
3,567 |
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Charges Completed per
Month per Investigator..................... |
6.7 |
7.5 |
8.0 |
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Investigators employed at
end of year................................... |
30 |
33 |
35 |
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AGENCY DIRECTOR(S) |
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During Audit Period: Mr. Rocco Claps Currently: Mr. Rocco Claps |
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Failure to maintain
adequate financial records or prepare accurate accounting reports for
submission to the Office of the State Comptroller Accounts Receivable
and Deferred Revenue Reporting Problems Persistent Issue
since 1997
Agency agrees with
auditors
Failure to meet the
procedural time limits Agency agrees with
auditors
Vouchers not
approved within 30 days
Interest due to
Vendors not paid Persistent Issues
since 1995
Agency Agrees with
Auditors |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE FINANCIAL REPORTING The Department of Human Rights did not maintain adequate financial records or prepare accurate accounting reports for submission to the Illinois Office of the Comptroller. The Department did not keep adequate records, schedules, or reconciliations to support grant/contract data, accounts receivables, and deferred revenues. In our review of the Generally Accepted Accepted Accounting Principles (GAAP) Packages (accounting reports) submitted to the Comptroller’s Office, we noted:
The Department’s books and records were maintained using the balances in the Comptroller’s appropriation reports which is on a cash basis of accounting. As part of the year-end closing process, State Agencies are required to prepare adjustments to convert to the accrual basis of accounting and submit to the State Comptroller their GAAP Reporting Packages which summarize their yearly financial activities and the status of their funds at year-end. (Finding 1, pages 9-10) This finding, or variations thereof, has been repeated since 1997. Department Officials agreed with our recommendation to keep adequate records, schedules, and reconciliations to support grant/contract data, accounts receivables, and deferred revenues so that accurate “GAAP Reporting Packages” can be prepared in the future. (For previous agency response, see Digest Footnote 1.) NONCOMPLIANCE WITH STATUTORILY MANDATED TIME LIMITS The Department of Human Rights did not meet the procedural time limits set forth when a charge of a civil rights violation had been filed. In our review of 30 cases filed with the Department (15 employment cases and 15 housing cases), we noted: · in two employment cases, the Department did not serve a copy of the charge on the respondents within 10 days (6-7 days late); · in one housing case the Department did not serve a copy of the charge on the respondent within 10 days of when the charge was filed (21 days late). Department management stated that the untimely issuance of notices was due to lack of personnel and numerous cases filed in the Charge Processing Division. (Finding 2, page 11) We recommended that the Department adhere to the processing timetable as mandated by the Illinois Human Rights Act. Department officials stated they will adhere to this recommendation. INADEQUATE CONTROLS OVER VOUCHER PROCESSING
The Department of Human Rights did not have adequate controls over voucher processing. In our review of 263 vouchers, some of the problems we noted were: - Seventy-four (28%) of vouchers tested totaling $130,850 were approved more than 30 days after receipt of the vendors invoice (1 to 437 days late). - Forty-five (17%) vouchers totaling $44,695 were paid 1 to 103 days late. Interest totaling $197 for 12 vouchers was paid to vendors upon request and interest totaling $297 for three vouches was due but not paid. - Other problems noted involved late payments to other State agencies, two travel vouchers submitted 111 and 131 days after completion of travel, and voucher amounts improperly charged to different fiscal years. (Finding 4, pages 14 -16) This finding has been repeated since 1995. We recommended the Department strengthen controls over voucher processing to ensure compliance with statutory requirements and its own policies. Department officials stated they will adhere to this recommendation. (For previous agency response, see Digest Footnote 2.) OTHER FINDINGS Other findings dealt with inadequate controls over property and equipment, inadequate monitoring of telephone usage, and inaccurate processing of payroll. We will review progress toward implementation of all our recommendations during our next examination. ___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KMC:drh SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were E. C. Ortiz & Co., LLP. Digest Footnotes
1.
INADEQUATE FINANCIAL
REPORTING – (Previous Department Response) 2005: “The Department agrees with the
recommendation. The Department has
secured additional software to help manage, reconcile, and support the GAAP
Reporting Package.” 2.
INADEQUATE
CONTROLS OVER VOUCHER PROCESSING - (Previous Department Response) 2005: “The Department agrees with the
recommendation. The Department has
made significant improvements in regards to timely processing of
vouchers. All travel vouchers are
processed within 1 week of receipt.
All other vouchers are processed within 2 weeks of receipt. In addition, the Department will continue
to approve and process vendor invoices in a timely manner.” |