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REPORT DIGEST
ILLINOIS MATHEMATICS & SCIENCE ACADEMY FINANCIAL AUDIT AND COMPLIANCE EXAMINATION For the Year Ended: June 30, 2007 Summary of Findings: Total this audit 2 Total last audit 5 Repeated from last audit 2 Release Date: July 24, 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 Iles Park Plaza 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full
Report the worldwide web at http://www.auditor.illinois.gov |
SYNOPSIS
· The Illinois Mathematics and Science Academy did not have adequate controls over agency head signature authority, competitive procurement and contract documentation.
· The Academy did not maintain adequate controls over the recording and reporting of fixed assets.
{Expenditures and Activity Measures are summarized on the reverse page.} |
ILLINOIS MATHEMATICS AND SCIENCE ACADEMY
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Year Ended June 30, 2007
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STATEMENT
OF ACTIVITIES |
FY 2007 |
FY 2006 |
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REVENUES AND OTHER SOURCES Operating Grant Revenue......................................... Interest/Investment Income....................................... State Appropriations................................................ Other Revenues........................................................ Other Sources (Uses)............................................... EXPENDITURES Education................................................................. Employment and Economic Development.................. |
$2,301,617 873,921 91,540 17,652,900 12,090 (35,748) $20,896,320
$21,167,358 16,700 $21,429,888 $(533,568) |
$1,797,060 1,495,555 39,250 16,322,900 0 0 $19,654,765
$21,039,017 8,400 151,472 $21,198,889
$(1,544,124) |
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SELECTED ACCOUNTS –
STATEMENT OF NET ASSETS |
FY 2007 |
FY 2006 |
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Assets: Cash and Cash Equivalents............................................. Receivables, Net............................................................ Capital Assets, Net........................................................ Liabilities: Accounts Payable/Accrued Liabilities.............................. Unearned Revenue......................................................... Compensated Absences (Short Term)............................ Compensated Absences (Long Term)............................. Net Assets........................................................................... |
121,912 22,040,876 $2,020,714 435,859 240,000 410,000 $25,034,273 |
55,879 23,780,098 $1,434,104 552,159 294,000 481,000 $25,567,842 |
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SUPPLEMENTARY INFORMATION |
FY 2007 |
FY 2006 |
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Average Number of Employees...................................... |
242 |
238 |
ACADEMY
PRESIDENT
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During
Audit Period: Stephanie P. Marshall,
Ph.D. |
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Currently: Glenn McGee Ph.D. |
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The Academy did not
properly use agency head signature authority Agency
head stamp usage was improper
Competitive
bidding requirements not followed
CODs
not properly completed Equipment
additions not recorded on property listing
Equipment
items could not be located |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER SIGNATURE AUTHORITY, PROCUREMENT AND CONTRACT
DOCUMENTATION The
Illinois Mathematics and Science Academy (Academy) did not have adequate controls
over agency head signature authority, competitive procurement and contract
documentation. During our testing, we
noted the following: ·
Twenty of 25
contracts tested in our sample (80%) did not properly use agency head
signature authority. We noted the
following exceptions during our testing of the 25 contracts:
·
The Academy
granted five administrative staff (without signature authority) in the
Business Office access to agency head stamps for the purpose of affixing the
agency head signature to vouchers to achieve efficiency. ·
One
administrative staff employee (without signature authority) was granted
access to an agency head stamp for the purpose of affixing the agency head
stamp to contracts to achieve efficiency. ·
In two of 25
(8%) contracts tested, the Academy did not follow competitive bidding
requirements in the procurement of services.
The Academy awarded two professional and artistic contracts totaling
$30,334 and $29,543, both of which were for the development of a professional
development plan for its Technology Immersion Pilot Project (TIPP)
grant. The Academy identified the
contracts as professional and artistic services - small purchase and did not
solicit bids for the services since they believed grant funds received by the
Academy were exempt from competitive bid requirements. ·
In three of 25 (12%) contracts tested, the Academy
did not properly complete the Contract Obligation Documents (CODs). Two contracts were multiple year contracts,
and the Academy did not enter the multiple year information or the maximum
contract amount on the CODs. One
contract did not indicate the correct contract action. (Finding 1, pages
12-14) We recommended the Academy ensure that every contract signatory have their name and title typed or printed legibly below their actual signature and the agency head signature stamps are secured and used only by those individuals delegated with the proper authority. Further, we recommended the Academy strengthen its internal controls to ensure the proper approval of contracts, to ensure competitive procurements are made when required and to ensure its contractual obligation documents are accurately completed. Academy agreed with the finding and will implement the recommendations. PROPERTY CONTROL
WEAKNESSES The
Illinois Mathematics and Science Academy (Academy) did not maintain adequate
controls over the recording and reporting of fixed assets. We noted the following: ·
14 of 25 (56%) of
equipment additions tested, totaling $61,113, were not recorded on the
Academy property listing. The items
were purchased in January through June of 2007. ·
Four of 25 (16%)
equipment deletions tested (two vans, a mower and a hydraulic broom),
totaling $53,642, were not reported in the proper period in which they were
traded-in. Items should have been
reported as deleted in FY05 and FY06, but were reported in FY07. · One of 50 (2%) equipment items tested (a spectrometer), totaling $52,185, did not contain a proper State identification tag. ·
One of 50 (2%) equipment items noted (desk) during
observation was tagged but not included on the property listing. · Seven of 50 (14%) equipment items tested (two scanners, a digital camera, two laptops, a cordless drill and a DVD/VCR), totaling $8,419, could not be located. (Finding 2, pgs. 15-16) To ensure compliance with the State Property Control Act,
the Illinois Administrative Code, and the Statewide Accounting Management
System, we recommended the Academy properly tag all property items with
easily identifiable State identification tags, and we recommended the
Academy
exercise adequate control over property and maintain accurate property
control records. The Academy agreed with the finding and noted the safeguarding and accuracy of Academy property is of critical importance to the Academy. It recognizes the importance of exercising control over its property and will review and revise its process for tagging and tracking property within the Academy’s control to ensure compliance with state requirements. __________________________________ WILLIAM G. HOLLAND, Auditor General WGH:CML This
audit was performed by the Office of the Auditor General’s staff. |