REPORT DIGEST

JOINT COMMITTEE ON ADMINISTRATIVE RULES

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2018

Release Date:  October 9, 2019

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: 0

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

• (18-01) The Committee did not exercise
adequate control over voucher processing.
• (18-02) The Committee did not exercise
adequate control over its State property
and equipment.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

VOUCHER PROCESSING WEAKNESSES

The Joint Committee on Administrative Rules
(Committee) did not exercise adequate
control over voucher processing.

Non-Payroll Vouchers
During testing of 40 non-payroll vouchers,
we noted the following:

• Five (13%) vouchers tested, totaling
$2,683, were not date stamped when received
by the Committee. As such, we were not able
to determine if the vouchers were approved
timely or if interest was due on the
invoices and properly paid.

• One (3%) voucher tested, totaling $1,922,
did not have the related equipment recorded
on the Committee’s property listing and
thus was not reported to the Department of
Central Management Services on the annual
inventory certification report.

• One (3%) voucher tested, totaling $758,
did not utilize the correct detail object
code.

• During testing of 15 travel vouchers, we
noted the following:

– Seven (47%) vouchers tested, totaling
$3,239, had hotel rates reimbursed that
were higher than the State rate, but did
not document that at least three hotels
were contacted before the higher rate was
paid.

– One (7%) voucher tested, totaling $186,
contained excessive mileage, which resulted
in an overpayment of $137 to the traveler.

– One (7%) vouchers tested, totaling $241,
contained a non-business related item,
totaling $17, that was reimbursed to the
traveler.

Interest

• Fiscal Year 2017 prompt payment interest,
totaling $2,446, was not paid by the
Committee.  (Finding 1, pages 9-12)

We recommended the Committee strengthen
controls over voucher processing to ensure
date of receipt is properly documented,
purchases of equipment are properly
recorded on property and equipment records,
accurate detail object codes are utilized,
travel vouchers are properly completed, and
interest is paid in accordance with the
State Prompt Payment Act.  Further, we
recommended the Committee seek
reimbursement for the identified
overpayments.

Committee officials accepted our
recommendation and indicated corrective
action has been or will be taken to address
the conditions noted.

PROPERTY CONTROL WEAKNESSES

The Committee did not exercise adequate
control over its State property and
equipment.

During testing of 120 equipment items, we
noted the following:

• 27 (23%) items, totaling $5,556, were
located in a different geographical
location than reported on the Committee’s
property listing.

• Two (2%) items, totaling $308, did not
have a location listed on the Committee’s
property listing.

• Five of 120 (4%) items, totaling $1,347,
could not be located.  (Finding 2, pages
13-14)

We recommended the Committee take action to
strengthen its controls over the recording
and reporting of its State property and
equipment to provide assurance the
Committee is in compliance with applicable
State laws and regulations.

Committee officials accepted our
recommendation and indicated corrective
action has been or will be taken to address
the conditions noted.

ACCOUNTANT’S OPINION

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

This compliance examination was conducted
by the Office of the Auditor General’s
staff.

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

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