REPORT DIGEST

 

ILLINOIS COMMUNITY COLLEGE BOARD

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2004

 

Summary of Findings:

Total this audit                          7

Total last audit                          5

Repeated from last audit           3

 

Release Date:

March 31, 2005 

 

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 Illinois Community College Board (Board) did not receive required informational grant reports from Community College districts by the required deadline.

¨      The Board did not comply with the State Finance Act and failed to enforce travel regulations.

¨      The Board did not conduct employee performance and probationary evaluations in a timely manner.

¨      The Board was not staffed at a total of 12 members as required by the Public Community College Act.

¨      The Board did not have adequate controls over information systems.

¨      The Board is not maintaining time sheets for its exempt employees as required by the State Officials and Employees Ethics Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 


                                      ILLINOIS COMMUNITY COLLEGE BOARD

                                                  COMPLIANCE EXAMINATION

                                              For the Two Year Ended June 30, 2004

 

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

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

$388,411,726

$417,723,447

$402,539,442

 

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

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

 

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

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

            Other Payroll Costs (FICA, Retirement)..

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

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

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

            EDP .......................................................

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

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

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

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

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

 

      AWARDS & GRANTS TOTAL..................

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

 

 

$7,366,302

1.9%

 

$1,281,297

17.4%

$14,891

.2%

$346,127

4.7%

$403,803

5.5%

$5,223,884

70.9%

$96,300

1.3%

 

$381,045,424

98.1%

 

 

$17,929,064

4.3%

 

$1,305,351

7.3%

$14,937

.1%

$435,952

2.4%

$401,826

2.2%

$15,660,785

87.4%

$110,213

.6%

 

$399,794,383

95.7%

 

 

$8,010,559

2.0%

 

$1,373,131

17.1%

$15,353

.2%

$428,803

5.4%

$491,174

6.1%

$5,561,282

69.4%

$140,816

1.8%

 

$394,528,883

98.0%

 

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

$1,230,425

$1,255,330

$1,082,944

 

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

FY 2002

·        Total Receipts (All Funds).............................

·        Expenditures of Federal Awards....................

·        Adult Education Students Served...................

·        Annual Students Served.................................

·        Associate Degrees and Certificates Awarded.

·        Annual Average Tuition and Fees for FTE......

·        Number of Community Colleges....................

·        Number of Employees...................................

$27,389,282

$46,086,000

*

*

*

$1,735.90

49

54

$39,514,167

$44,234,000

131,825

693,285

45,329

$1,634.63

49

52

$22,498,595

$25,465,000

134,225

676,412

38,946

$1,522.78

49

55

* Information not available at this time

AGENCY HEAD

During Audit Period:  Geoffrey S. Obrzut, President (1/04 - 6/04); Dr. Joseph Cipfl, Jr., President (7/02 -  2/04)

Currently:  Geoffrey Obrzut, President

 

 


 

 

 

 

 

 

 

 

 

 

Approximately 25% of grant informational reports were received late

 

 

Some reports were not submitted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Travel was not approved in advance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance evaluations not performed timely

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Community College Board has four vacancies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficiencies in controls over information systems

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exempt employees did not maintain time sheets

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

COMMUNITY COLLEGE DISTRICTS SUBMITTED GRANT INFORMATIONAL REPORTS LATE

 

                    The Illinois Community College Board did not receive required informational grant reports from community college districts by the required deadline.

 

                    We noted 464 of 1,833 (25%) informational reports for fiscal year 2003 were 1 day to 8.5 months late and 29 (2%) information reports were not submitted to the Board.  We also noted 465 of 1,989 (23%) informational reports for fiscal year 2004 were 1 day to 7 months late and 57 (3%) informational reports were not submitted to the Board.

 

                    Board management stated it has little recourse to enforce timely filing of the reports due to a lack of a penalty mechanism to impose upon the districts that file late.

            

       The Board uses the informational reports to evaluate the effectiveness of grant programs and prepare for future budgets.  The failure to receive the community college information reports promptly could delay the Board’s completion of its own internal summary reports and budget preparation.  (Finding #1, page 9)  This finding was first reported in 1996.

 

                                         We recommended the Board perform a comprehensive review of reporting deadlines to determine if deadlines should be revised.  In conjunction with this review we recommended the Board implement rule changes to address a penalty mechanism for all reports not filed by the required deadline in an effort to improve community colleges’ compliance with reporting deadlines.

                 

                                        Board officials concurred with our recommendation and stated that they would work with the Management Information Systems Advisory Group to decrease the number of late reports received.  The Management Information Systems Advisory Group is made up of college representatives that meet quarterly.  (For the previous Board response, see Digest Footnote #1.)

 

 

NEED TO IMPROVE TRAVEL COMPLIANCE

 

                 The Illinois Community College Board (Board) did not comply with the State Finance Act and failed to enforce the travel regulations.

 

                 During our review of 125 employee or Board members travel vouchers we noted the following:

 

·           We noted 29 (23%) vouchers out of the 125 tested that had a total of 45 instances where an authorized employee did not approve the employee’s travel in advance. 

 

·           The Board did not file semi-annual Form TA-2 with the Legislative Audit Commission in a timely manner.  The report due July 15, 2003 was filed 17 days late, and the report due January 15, 2004 was filed 123 days late.

     

                         Board officials stated that the prior administration did not make corrective action to address the prior audit finding on advance approval of travel vouchers a priority.  Management further stated the semi-annual Form TA-2 was filed late due to oversights and human error.  (Finding #2, pages 10-11)  This finding was first reported in 2002.

 

                         We recommended the Board enforce its travel policies regarding the preauthorization of travel.  Further, the Board should take the necessary measures to ensure the timely filing of Form TA-2.

 

       Board officials concurred with our recommendation and stated that an Employee Travel Guide has been developed so that all staff has a copy of the rules.  (For the previous Board response, see Digest Footnote #2.) 

 

 

NEED TO CONDUCT EMPLOYEE EVALUATIONS IN A TIMELY MANNER

 

      The Illinois Community College Board did not perform employee performance and probationary evaluations in accordance with Board policy.

 

      We noted that 12 of 13 (92%) performance evaluations tested were not performed in accordance with Board policy for fiscal years 2003 and 2004.  For fiscal year 2003 evaluations, 7 individuals (54%) had untimely performance evaluations, ranging from 2 to 21 days past the due date.  Four individuals (31%) did not have probationary evaluations performed.  One individual (8%) did not have an annual performance evaluation on file.  For fiscal year 2004 evaluations, 8 individuals (62%) had untimely performance evaluations, ranging from 2 to 105 days past the due date.  Three individuals (23%) did not have an annual performance evaluation on file.

 

      The Board’s Director of Human Resources stated employees’ supervisors are responsible for ensuring that evaluations are performed in a timely manner and not all Board supervisors performed employee evaluations in accordance with Board policy.  (Finding #4, page14)

 

       We recommended the Board establish written procedures to ensure performance evaluations are performed in a timely manner.  We also recommend the Board follow-up with supervisors to ensure compliance with these procedures.

 

       Board officials concurred with our recommendation and state that the Human Resources Director will ensure that all evaluations are done timely. 

 

NEED TO FILL COMMUNITY COLLEGE BOARD VACANCIES

 

                    The State Board was not staffed at a total of 12 members as required by the Public Community College Act.

 

       The Public Community College Act (110 ILCS 805/2-1) states, "The State Board shall consist of 12 members as follows:  a nonvoting student member selected by the recognized advisory committee of students of the Illinois Community College Board … and 4 members, one of whom shall be a senior citizen age 60 or over, to be appointed by the Governor by and with the advice and consent of the Senate."

 

                    For 18 of 24 months of the engagement period, the Board was fully staffed at 12 members, and in accordance with the Act, had a student and senior citizen member.  Beginning in January 2004, three members of the Board resigned in order to comply with amendments to the State Officials and Employees Ethics Act passed in Public Act 93-0617 in December 2003.  As of the end of the engagement period, the Board consisted of only 9 members.  An additional member resigned in September 2004 to bring the total Board members down to 8.   (Finding #5, page 15)

 

                    We recommended the Board work with the Governor’s Office to ensure the Board vacancies are filled in a timely manner.

 

       Board officials concurred with our recommendation and stated that they have been working with the Governor’s Office to remind them that the Board is not in compliance with the Public Community College Act.  

 

NEED TO IMPROVE INFORMATION SYSTEMS CONTROLS

 

      We noted deficiencies in controls over information system resources including lack of a complete updated disaster recovery plan, no testing of the disaster recovery plan during the examination period, lack of a long-range information systems plan, and password change intervals longer than the recommended 35 days.  (Finding #3, pages 12-13)  This finding was first reported in 2002. 

 

      We recommend the Board continue its efforts to update its disaster recovery plan, test its disaster recovery plan, develop and maintain a long-range IS plan and reduce its local area network password change interval to 35 days.

 

      Board officials concurred with our recommendation and stated that the disaster recovery plan has been updated; the testing plan will be implemented and maintained annually.  Also, the long range information systems plan will not be completed until the Department of Central Management Services Information Technology rationalization program is finalized.  Further, administrative passwords for the operating system had been changed to within the recommended 35-day interval.  (For the previous Board response, see Digest Footnote #3.)

 

NEED TO COMPLY WITH STATE OFFICIALS AND EMPLOYEES ETHICS ACT

 

      The Board is not maintaining time sheets for its exempt employees in compliance with the State Officials and Employees Ethics Act (Act).

 

      The Act requires the Board to adopt personnel policies consistent with the Act.  The Act (5 ILCS 430/5-5(c)) states, "The policies shall require State employees to periodically submit time sheets documenting the time spent each day on official State business to the nearest quarter hour."

 

      We noted 39 exempt (non civil service) employees did not maintain time sheets in compliance with the Act.  (Finding 04-7, page 17)

 

      We recommended the Board amend its policies to require exempt employees to maintain time sheets in compliance with the Act.

 

      Board officials stated they would switch to a "positive" time keeping system for exempt staff.

 

OTHER FINDING

 

      The remaining finding is less significant and is reportedly being given attention by Board management.  We will review progress toward implementation of our recommendations during our next compliance examination.  

 

      Ellen Andres, Chief Operating Officer, provided responses to our findings and recommendations. 

 

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JAF:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

      The accounting firm of Sikich Gardner & Co, LLP served as our special assistant auditors for this engagement.

 

DIGEST FOOTNOTES

 

#1  LATE GRANT INFORMATIONAL REPORTS - Previous Board Response

 

2002:  The Board concurs with the finding.  The Board does not have statutory authority to penalize the districts for late submissions of grant reports.  We will continue to send reminders to colleges when the final reports are due to the Board. 

 

 

 

#2 TRAVEL NONCOMPLIANCE - Previous Board Response

 

2002:  The Board concurs with this finding.  We will take corrective action and review travel policies with the staff and supervisors to ensure that the policies are followed. 

 

#3 WEAKNESSES IN INFORMATION SYSTEM CONTROLS – Previous Board Response

 

2002:  The Board concurs with this finding.  The Board is in the process of revising its disaster recovery plan, local area network policy, and system development methodology.  When complete, the document will be reviewed and updated regularly.  We will also develop and maintain a long range IS plan.