REPORT DIGEST

PROPERTY TAX APPEAL BOARD

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

Summary of Findings:

Release Date:
May 21, 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 have adequate controls over processing and recordkeeping of cash receipts and refunds.

• The Board did not properly process certain vouchers for payment.

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

FY 1996

FY 1995

FY 1994

• Total Expenditures (All Funds)

OPERATIONS TOTAL
% of Total Expenditures

 

Personal Services
% of Operations Expenditures
Average No. of Employees

 

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

 

Contractual Services
% of Operations Expenditures

 

All Other Operations Items
% of Operations Expenditures

 

GRANTS TOTAL
% of Total Expenditures

• Cost of Property and Equipment

$972,055

$972,055
100.0%

$545,650
56.13%
17

$87,674
9.02%

$41,861
4.31%

$296,870
30.54%

$0
0%

$174,998

$651,498

$651,498
100.0%

$463,935
71.21%
15

$73,517
11.28%

$35,087
5.39%

$78,959
12.12%

$0
0%

$182,369

$621,855

$621,855
100.0%

$465,421
74.84%
14

$69,289
11.14%

$24,180
3.89%

$62,965
10.13%

$0
0%

$166,251

FY 1996

FY 1995

FY 1994

• Total Properties Appealed
• Total Properties Closed
• Total Properties Pending at June 30,

43,036
36,250
6,786

36,249
28,885
7,364

29,628
18,975
10,653

AGENCY DIRECTOR(S)

During Audit Period: James Chipman
Currently: James Chipman

Controls over cash receipts and refunds need to be strengthened

Vouchers were not all charged to the proper fiscal year or approved timely

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER CASH RECEIPTS AND REFUNDS

The Board did not have adequate controls over the processing and recordkeeping of cash receipts and refunds. The following inadequacies were noted:

• Cash receipts were not immediately restrictively endorsed upon receipt;

• Reconciliations of cash receipts to deposits into the State Treasury were not adequate; and,

• A detailed cash refunds ledger was not maintained. In addition, the receipt dates for three of five (60%) of the refunds were not recorded. Therefore, the timeliness of deposits could not be determined.

We recommended the Board strengthen controls over cash receipts by immediately restrictively endorsing receipts when received, recording receipt dates, maintaining a cash refunds ledger and performing monthly reconciliations between the Board's cash receipts ledger and the Comptroller's deposit records. (Finding 1, page 6)

The Board agreed with our finding and noted measures have been taken to ensure adequate controls over the processing and recordkeeping of cash receipts.

VOUCHERS NOT PROPERLY PROCESSED

The Board did not properly process certain vouchers for payment. The following inadequacies were noted:

• Three of 40 (8%) vouchers tested totaling $824 were not charged to the proper fiscal year; and

• Seven of 50 (14%) vouchers tested totaling $1,074 were approved for payment 4 to 40 days late.

We recommended the Board comply with the State Finance Act and State rules by implementing controls to ensure vouchers are charged to the proper fiscal year and approved within the required timeframe. (Finding 2, page 7)

The Board agreed with our finding and plans to implement the necessary procedures to ensure timely approval and processing of vouchers.

OTHER FINDINGS

The remaining findings are less significant, and Board management has responded that appropriate corrective action is in process. We will review progress towards implementation of our recommendations in the next audit.

Mr. James Chipman, Executive Director, provided responses to our findings and recommendations.

AUDITORS' OPINION

We conducted a compliance audit of the Property Tax Appeal Board as required by the Illinois State Auditing Act. The Board had no locally held funds or federal or State trust funds. Consequently, there are no financial statements requiring a financial audit leading to an opinion.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:GR:pp

AUDITORS ASSIGNED

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