REPORT DIGEST
ILLINOIS MATHEMATICS & SCIENCE ACADEMY
COMPLIANCE EXAMINATION
For the Year Ended: June 30, 2009
Summary of Findings:
Total this audit: 2
Total last audit : 2
Repeated from last audit: 2
Release Date: March 9, 2010
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 www.auditor.illinois.gov
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
equipment. We noted the following:
• Eight of 60 (13%) equipment items tested, totaling $36,356
did not contain a proper State identification tag.
• Fifteen of 60 (25%) equipment items tested, totaling
$100,452 could not be located. Seven of
these items were listed as surplus property on the Academy’s property control
records and were believed to be shrink wrapped on
pallets awaiting transfer to the Department of Central Management Services
(DCMS) surplus warehouse.
• Two of 45 (4%) items tested (new purchases, additions, and
items selected from the Academy grounds) were recorded on the property listing
at a zero value instead of a value equal to their purchase cost or value at
time of donation.
• Five of 60 (8%) equipment items tested, totaling $37,841
were located at a different location than was recorded on the property records.
• One of 60 (2%) equipment items tested, with a cost of $547
had been transferred to the DCMS surplus warehouse during June 2004, but had
not been removed from the Academy’s property control records.
• One of 10 (10%) items of equipment tested that was located
on Academy grounds, with a cost of $1,155, had an incorrect purchase date
recorded on the property control records. While scanning the property control
records, we noted 30 additional items with the same incorrect purchase date.
• One (piano) of 10 (10%) items of equipment tested that
were located on Academy grounds was not recorded on the Academy’s property
control records.
• The Academy’s property control records and Agency Report
of State Property (C-15) do not include fiscal year 2009 costs of $60,703 for
the purchase of library books or any of the library books purchased in previous
years.
• The Academy prepares its quarterly C-15 report from its
accounting records. These reports do not
agree to the Academy’s property control records. As of June 30, 2009, equipment reported on the
C-15 report exceeded the property control records by $1,119,140. The Academy had not prepared a reconciliation
of the two.
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. In addition,
not maintaining accurate records may result in duplicate purchases of various
equipment items. (Finding 1, pages 8-10)
We recommended the Academy implement procedures to ensure
adequate control over State property to ensure accurate property control
records are maintained in accordance with the State Property Control Act, SAMS,
and the Illinois Administrative Code.
The Academy agreed and stated that 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 its process for tagging, tracking and
inventorying property within the Academy’s control to ensure compliance with
State requirements.
Regarding the Academy’s library, IMSA
is a member of the Consortium of Academic and Research Libraries in Illinois (CARLI). The Academy
utilizes that system for recording additions and deletions to its library
collection. The system is also used when
conducting a physical inventory of the collection. The Academy was not aware it was not in
compliance with respect to the capitalization and reporting of its library
collection, however we agree with this finding and will take the steps required
for proper recording and capitalization of the IMSA
library collection.
INADEQUATE CONTROLS
OVER PERSONAL SERVICES
The Academy did not have adequate controls over personal
services. During our testing of employee
compensated absence records, we noted the following:
• For two of 35 employees (6%) tested, we noted that hours
taken for personal/vacation days in one month per the attendance controller
sheets and authorization forms were recorded in a different month in the
employee’s attendance records.
• For one of 35 (3%) employees tested, we noted
discrepancies when comparing employee authorization forms to attendance controller
sheets and attendance records. The
attendance records included time taken off for vacation that was not reflected
on the authorizations or the attendance controller sheets.
• For four of 35 (12%) employees tested, there were no
authorization forms on file to compare to the attendance controller sheets and
attendance records. The attendance
controller sheets and attendance records indicated that absences were taken.
• For one of 35 (3%) employees tested, we noted the employee
had taken three religious holidays. The Academy’s
policies allow employees to take two religious holidays. Employees must use vacation or personal days
for any additional religious holidays.
This employee’s vacation and personal time was not charged for the third
religious holiday absence.
• For one of
35 (3%) employees tested, there were no authorization forms or attendance
controller sheets on file to compare to the attendance records. The attendance records indicated that
absences were taken.
• We noted
that three of 35 employees (9%) tested, did not receive annual performance
appraisals as is required by Academy policy.
Two evaluations (6%) were not performed at all during the examination
period. One evaluation (3%) was
performed approximately 5 months late.
• For one of
13 newly hired employees (8%) tested, the employee did not complete the
required ethics training within the first six months of employment. This employee completed the required ethics
training 19 days late.
Failure to maintain complete and accurate attendance records
increases the risk that the Academy may pay for services not rendered by its
employees. In addition, employees may
not receive all benefits they have rightfully earned. Failure to perform annual performance
appraisals limits the Academy’s ability to adequately make decisions regarding
salary adjustments, promotion, demotion, termination and reinstatement. Failure to provide ethics training within 6
months of employment is a violation of the State Officials and Employee Ethics
Act. (Finding 2, pages 11-13)
We recommended the Academy strengthen controls over personal
services to ensure accurate attendance records are maintained, that annual
evaluations are completed for all employees, and that ethics training is
completed within the required time frame.
The Academy agreed with the auditors’ findings and will
reinforce and monitor compliance with its internal policies. The Academy has adjusted the personal leave balance
for the employee who took one more religious holiday than Academy policy
allows.
The Academy will develop better procedures for managing
personal service records, and will emphasize existing procedures that address
performance reviews and ethics training.
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
The public accounting firm of Borschnack, Pelletier & Co. was our special assistant auditor for this engagement.