REPORT DIGEST ILLINOIS MATHEMATICS & SCIENCE ACADEMY COMPLIANCE EXAMINATION For the Year Ended: June 30, 2008 Summary of Findings: Total this audit 2 Total last audit 2 Repeated from last audit 1 Release Date: June 25, 2009 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 are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS · The Illinois Mathematics and Science Academy did not maintain adequate controls over the recording and reporting of capital assets. · The Academy did not have adequate controls over personal services. {Expenditures and Activity Measures are summarized on the reverse page.}

ILLINOIS MATHEMATICS AND SCIENCE ACADEMY

COMPLIANCE EXAMINATION

For The Year Ended June 30, 2008

STATEMENT OF ACTIVITIES	FY 2008	FY 2007
Total Expenditures (All Funds) ...................................... OPERATIONS TOTAL……………………..…………… % of Total Expenditures.................................................. Personal Services........................................................... % of Operations Expenditures..................................... Average No. of Employees.......................................... Other Payroll Costs (FICA, Retirement) ..................... % of Operations Expenditures..................................... Contractual Services....................................................... % of Operations Expenditures..................................... All Other Operations Items............................................. % of Operations Expenditures..................................... AWARDS & GRANTS, REFUNDS TOTAL................... % of Total Expenditures...................................... NON-APPROPRIATED FUNDS................................. % of Total Expenditures..................................... Cost of Property and Equipment.......................................	$ 22,207,625 $18,798,586 85% $12,401,222 66% 247 $186,757 1% $4,265,101 23% $1,945,506 10% $455,668 2% $2,953,371 13% $ 58,667,800	$ 21,636,257 $18,089,190 84% $11,926,359 66% 242 $179,880 1% $4,309,870 24% $1,673,081 9% $452,380 2% $3,094,687 14% $ 57,711,021
ACADEMY PRESIDENT
During Period: Glenn McGee Ph.D. Currently: Glenn McGee Ph.D.

Equipment items not properly recorded Equipment items not properly tagged Equipment items could not be located Equipment report not timely filed Employee files missing information Time cards did not match attendance sheets Accrued compensated balance computations could not be determined Late or missing performance appraisals

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NEED TO ENHANCE CONTROLS OVER PROPERTY The Illinois Mathematics and Science Academy (Academy) did not maintain adequate controls over the recording and reporting of capital assets. We noted the following: · Eight of 50 (16%) equipment items tested, totaling $11,980, were located at a different location than was recorded on the property records. · Six of 25 (24%) obsolete/surplus equipment items tested, totaling $3,075, were listed on the property listing under an incorrect department code. · For one of 25 (4%) equipment vouchers tested, totaling $26,068, equipment items were recorded on the property listing at a zero value instead of fair value cost and capitalized. The voucher was for a capital lease of 100 laptops. · For one of 13 (8%) equipment deletions tested, the State identification tag number was assigned to multiple equipment items. The State identification tag number was assigned to 17 chairs, totaling $7,113 · One of 50 (2%) equipment items tested, totaling $500 did not contain a proper State identification tag. · Two of 50 (4%) equipment items tested, totaling $1,405, could not be located. These missing items included a safety cabinet and a fax machine. · For one of 25 (4%) equipment vouchers tested, totaling $24,773, the Academy did not file a new furniture affidavit prior to purchasing new furniture equipment. · The Annual Real Property Utilization Report was not filed timely. The report was filed on December 17, 2008, 48 days after the October 30th deadline Failure to exercise adequate control over property, maintain accurate property control records, and properly identify equipment items with State identification tags increases the potential for fraud and possible loss or theft of State property. Property control objectives include preservation of assets to minimize the burden placed on State government to replace lost, stolen, or damaged property. Failure of Academy personnel to adequately control and monitor all property under its jurisdiction is noncompliance with the State Property Control Act. In addition, compliance with the State Property Control Act is important so the Academy does not make purchases of new furniture when comparable items may be available through State Surplus. Failure to submit timely Annual Real Property Utilization Reports is noncompliance with the State Property Control Act and could lead to delays or an inaccuracy in the State’s reporting of real property. (Finding 1, pages 9-10) We recommended the Academy exercise adequate control over property and maintain accurate property control records according to the State Property Control Act, SAMS, and the Illinois Administrative Code. 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. INADEQUATE CONTROLS OVER PERSONAL SERVICES The Academy did not have adequate controls over personal services. During our testing, we noted the following: · For two of 35 employees (6%) tested, the employee application was missing from their personnel file. The Academy recreated one of the missing applications but was unable to locate or reproduce the other missing application due to employee resignation. · For 32 of 35 (91%) employees tested, we noted 357 discrepancies when comparing employee time cards to attendance controller sheets. In addition, weekly time records for 18 of 35 (51%) employees tested could not be located by Academy personnel. · Four of 35 (11%) employees’ absences did not have supporting absence/leave authorization requests or other supporting documents. · Due to numerous discrepancies between attendance controller sheets and employee time sheets we were unable to determine whether accrued compensated absence balance was computed correctly for 34 of 35 (97%) employees tested. · For ten of 35 employees (29%) tested, the Academy did not perform annual performance appraisals per agency policy. Two evaluations (6%) were not performed at all during the examination period. Seven evaluations (20%) were performed 9 to 168 days late. One evaluation’s (3%) timeliness could not be determined due to the evaluation not being dated. Failure to maintain complete attendance records and reconcile accrued leave balances to payroll expenditures increases the risk that the Academy could pay for services not rendered by its employees. Further, failure to maintain accurate accumulated leave records for all employees could lead to miscalculations in accrued leave time in future years. Failure to perform annual performance appraisals limits the Academy to adequately make decisions regarding salary adjustments, promotion, demotion, discharge, layoff, recall, and reinstatement. (Finding 2, pages 11-12) We recommended the Academy strengthen controls over personal services to ensure accurate timekeeping records and personnel files are maintained, leave absences are documented in accordance with agency policy, and annual evaluations are completed timely The Academy agreed with the finding and will reinforce and monitor compliance with its internal policies and develop new procedures to strengthen controls over personal services. The Academy is in the process of implementing a computerized Human Resource Management System which will provide HR staff and managers with better tools for managing and strengthening controls over personal services records. AUDITOR’S OPINION We conducted a compliance examination of the Academy as required by the Illinois State Auditing Act. We have not audited any financial statements of the Academy for the purpose of expressing an opinion because the Academy does not, nor is it required to, prepare financial statements. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:AKS AUDITORS ASSIGNED This audit was performed by the Office of the Auditor General’s staff.