REPORT DIGEST

JUDICIAL INQUIRY BOARD

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1996

Summary of Findings:

Release Date:
February 26, 1997

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Board did not properly calculate salary increases resulting in an overpayment of approximately $4,189 to one employee and an underpayment of $198 to a second employee.

• The Board miscalculated its liability for compensated absences (accrued vacation and sick time) by $6,000. It also underpaid a retired employee approximately $3,214 of a lump sum payment for accrued and unused sick and vacation time.

• The Board did not maintain accurate property records resulting in an understatement of $535 on the Board's Fixed Assets Reports.

{Expenditures and Activity Measures are summarized on the reverse page.}

• Total Expenditures (All Funds)..............

• Cost of Property and Equipment........

The Board miscalculated salary increases for two employees

Liability for vacation and sick leave was overstated by $6,000

Property records were not adequate

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

IMPROPER CALCULATIONS OF SALARY ADJUSTMENTS

The Board miscalculated salary increases for two employees resulting in an overpayment of $4,189 to one employee and an underpayment of approximately $198 to another employee. Good business practices require the establishment of a proper internal control structure to prevent improper expenditures, ensure accuracy and reliability of data, and promote operational efficiency.

 

We recommended Board management strengthen its internal controls to ensure proper expenditures of State funds and comply with the State Comptroller's Act and CUSAS procedures. (Finding 1, page 6)

Board management agreed with our finding and recommendation and stated that steps have been taken to recover the overpayment and to prevent future miscalculations in salary increases.

 

LIABILITY FOR COMPENSATED ABSENCES WAS INCORRECT

 

The Board miscalculated its compensated absences liability for vacation and sick leave in FY96 causing an overstatement of the liability of $6,000. In addition, a retired employee was underpaid a lump sum payment of approximately $3,214 for accrued and unused sick time. Improper calculations for compensated absence liability could result in improper reporting to the Comptroller which misrepresents State liability.

We recommended the Board comply with the State Finance Act and CUSAS procedures to ensure accurate computation of compensated absence liability. (Finding 2, page 8)

 

Board management agreed with our finding and recommendation. They stated that corrective action has been taken to ensure accurate payment for compensated absence liabilities.

 

INADEQUATE CONTROLS OVER PROPERTY RECORDS

 

The Board did not properly maintain adequate property records which resulted in an understatement of $535 on the Board's Fixed Asset Reports.

 

Inadequate property and equipment reporting prevents fair presentation of the Board's financial information and statewide accountability as well as reduces the Board's ability to adequately safeguard State property.

 

We recommended the Board record all property under its control as required by the State Property Control Act and the Illinois Administrative Code. (Finding 3, page 9)

Board management agreed with our finding and recommendation. They stated that adequate property records are now on file and will be properly maintained

 

AUDITORS' OPINION

 

The Board does not have any non-shared or locally held State or federal funds. Consequently, there are no financial statements requiring an auditors' opinion presented in this report.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JW:NLA

 

AUDITORS ASSIGNED

The audit was performed by the Auditor General's staff.