REPORT DIGEST LEGISLATIVE PRINTING UNIT COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2009 Summary of Findings: Total this audit 1 Total last audit 0 Repeated from last audit 0 Release Date: January 14, 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 Iles Park Plaza 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and the Full Report are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS · The Legislative Printing Unit did not exercise adequate control over the recording and reporting of State Property. {Financial Information is summarized on the reverse page.}

LEGISLATIVE PRINTING UNIT

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2009

EXPENDITURE STATISTICS	FY 2009	FY 2008	FY 2007
Total Expenditures........................................... Personal Services.................................... % of Operations Expenditures............ Average No. of Employees................ Other Payroll Costs................................. % of Operations Expenditures............ Contractual Services................................ % of Operations Expenditures............ Equipment........…………………. % of Operations Expenditures… All Other Operations Items...................... % of Operations Expenditures............	$2,425,016 $1,313,240 54.1% 30 $426,273 17.6% $210,907 8.7% $239,145 9.9% $235,451 9.7%	$2,393,501 $1,310,039 54.7% 29 $365,692 15.3% $229,563 9.6% $272,583 11.4% $215,624 9.0%	$2,328,644 $1,263,588 54.3% 29 $289,772 12.4% $226,012 9.7% $304,957 13.1% $244,315 10.5%
Cost of Property and Equipment......................	$4,682,723	$4,369,167	$3,966,367

SELECTED ACTIVITY MEASURES (Not Examined)	FY 2009	FY 2008	FY 2007
· Total number of jobs completed …............. · Total number of impressions.......................	5,003 21,208,362	3,129 23,335,765	3,562 27,481,732

EXECUTIVE DIRECTOR

During Audit Period: Mr. John L. Rodems

Currently: Mr. John L. Rodems

Additions totaling $397,500 not reported Additions totaling $34,067 recorded late Locations of property differed from records Trade-in allowance improperly deducted Agency agreed with auditor recommendation

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROL OVER THE RECORDING AND REPORTING OF STATE PROPERTY The Legislative Printing Unit (LPU) did not exercise adequate control over the recording and reporting of State Property. We noted the following: · LPU did not properly record the cost of an item acquired under an installment purchase agreement. LPU recorded an addition to their property records for the acquisition of this item totaling $157,500. However, the Office of the Comptroller (Comptroller) had determined the cost of this item to be $555,000. As a result, the item’s value was understated on the LPU property records by $397,500, and LPU improperly understated additions on their Quarterly Report of State Property (C-15) for the corresponding quarter by $397,500. · LPU did not timely record 5 of 23 (22%) equipment additions tested, totaling $34,067, on its property records. These items were recorded from 15 to 48 days late. In addition, one item acquired prior to the current examination period was not added to the property records or tagged, and historical cost or value information for this item could not be located. · For 5 of 25 (20%) items tested, the items were located within LPU; however, the physical locations differed from the locations specified in LPU’s records. · In addition, LPU did not properly record the value of an item acquired during the examination period. LPU purchased the equipment item, which had a total cost of $8,600. However, LPU deducted the trade-in allowance of $500 when recording the value of the equipment on LPU’s property records. As a result, the item’s value was understated by $500, and LPU improperly understated additions on their C-15 for the corresponding quarter by $500 (Finding 1, pages 8-9) We recommended LPU strengthen controls over the recording and reporting of State property by ensuring all equipment is accurately and timely recorded on LPU’s property records. Agency officials agreed with our recommendation and stated they have taken corrective action to ensure that all future installment purchases are recorded in the proper manner on property control records in accordance with Comptroller rules. Additionally, LPU stated they will ensure that all property acquired with trade-in allowances are properly valued on property control records and strengthen controls over equipment additions to ensure they are recorded in a timely manner and adjust physical locations of property items as they are moved from one location to another. AUDITOR’S OPINION We conducted a compliance examination of the Legislative Printing Unit as required by the Illinois State Auditing Act. We have not audited any financial statements of the Legislative Printing Unit for the purpose of expressing an opinion because the Legislative Printing Unit does not, nor is it required to, prepare financial statements. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:CMD:pp AUDITORS ASSIGNED The compliance examination was conducted by the Auditor General’s staff.