REPORT DIGEST

STATE POLICE MERIT BOARD

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2018

Release Date:  February 6, 2018

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  2 -- 0 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 0 -- 2

FINDINGS LAST AUDIT: 2

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance
with State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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
www.auditor.illinois.gov

SYNOPSIS

• (2018-001)	The State Police Merit
Board did not have adequate controls over
personal services.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PERSONAL SERVICES

The State Police Merit Board (Board) did
not have adequate controls over personal
services.

We noted the following weaknesses during
testing of personal services:

• Eight of 9 (89%) payroll vouchers tested,
paid from special State funds, did not
include applicable employer group insurance
cost remittance, required to be paid to the
Department of Central Management Services
(DCMS). The Board was unable to provide the
amount of the omission. During Fiscal Year
2017 and 2018, the Board had a total of
$2,305,049 in personal services
expenditures for regular positions, and
submitted no insurance payments to DCMS.

• During testing of employee attendance
records, we noted the following:
– Two of 4 (50%) employees tested were paid
overtime hours that were not supported by
proper documentation showing overtime had
been worked. The overpayments totaled $779.
– Two of 40 (5%) monthly time sheets tested
had formula errors which caused incorrect
overtime hours to be calculated. One error
resulted in a $97 overpayment to an
employee, and the other resulted in a $26
underpayment to an employee.
– During our testing of 40 monthly time
sheets, 22 reported overtime hours worked.
Approvals for 12 of 22 (55%) were approved
with a stamped signature of an authorized
approver. Additionally, 11 of 22 (50%)
reported instances of extensive overtime
being worked with no lunch or break
periods.
– The Board’s timekeeping policy is
inadequate and does not require absences or
overtime to have prior written approval.
Approvals are done at the end of each month
after overtime has been worked and time off
has been taken.

• During testing of Agency Workforce
Reports (Report), we noted the Fiscal Year
2017 Report did not list the Board’s
contractual employee. Additionally,
inaccurate percentages were reported.
(Finding 1, pages 9-11)

We recommended the Board ensure proper
employer group insurance costs are remitted
to DCMS as required by the State Employees
Group Insurance Act of 1971. We also
recommended the Board maintain accurate
overtime records and implement controls to
ensure that overtime is approved with a
proper signature of authorized approver
prior to being worked. We further
recommended the Board ensure accurate
information is reported in Agency Workforce
Reports.

The Board agrees and has since added
another approval level to the personal
services area to catch human errors within
the timekeeping system.

OTHER FINDINGS

The remaining finding pertains to voucher
processing weaknesses. Auditors will follow
up on the Board’s progress towards the
implementation of our recommendations in
the next engagement.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Board for the two years
ended June 30, 2018 as required by the
Illinois State Auditing Act.  The
accountants stated the Board complied, in
all material respects, with the
requirements described in the report.

This compliance examination was conducted
by West & Company, LLC.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:SWK