REPORT DIGEST

 

DEPARTMENT OF AGRICULTURE

DUQUOIN STATE FAIR

 

COMPLIANCE AUDIT AND

SUPPLEMENTARY

FINANCIAL

INFORMATION

For the Two Years Ended:

September 30, 2003

 

Summary of Findings:

 

Total this audit                       4

Total last audit                       3

Repeated from last audit        1

 

Release Date:

April 20, 2004

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

SYNOPSIS
  • The DuQuoin State Fair parking supervisors did not adequately supervise parking on the fairgrounds.
     
  • The DuQuoin State Fair had weaknesses in the timekeeping system for temporary employees.
     
  • The DuQuoin State Fair expenditures exceeded revenues by $488,815 and $1,178,075 for the years ended September 30, 2003 and 2002, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Revenues, expenditures and supplementary information are summarized on the reverse page.}

 

                                ILLINOIS DEPARTMENT OF AGRICULTURE

                                                 DUQUOIN STATE FAIR

 

                                                  COMPLIANCE AUDIT

                                  For The Two Years Ended September 30, 2003

 

REVENUE AND EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Revenue

          Tickets

               % of Revenue

          Space Rental:Fair

               % of Revenue

          Entry Fees

               % of Revenue

          Sponsorship

               % of Revenue

 

! Total Expenditures (All Funds)

          Personal Services

               % of Expenditures

          Other Payroll Costs (FICA, Retirement)

               % of Expenditures

          Contractual Services

               % of Expenditures

          Fair Entertainment

               % of Expenditures

          Premiums and Awards

               % of Expenditures

          Horse Racing Purses

               % of Expenditures

          All Other Operations Items

               % of Expenditures

! (Deficiency) of Revenues Over Expenditures

$1,020,421

$465,809

45.7%

$507,451

49.7%

$20,361

2.0%

$26,800

2.6%

 

$1,509,236

$331,813

22.0%

$69,699

4.6%

$319,015

21.1%

$479,482

31.8%

$151,282

10.0%

$37,527

2.5%

$120,418

8.0%

$(488,815)

$940,831

$429,411

45.6%

$467,060

49.6%

$20,360

2.2%

$24,000

2.6%

 

$2,118,906

$325,213

15.4%

$64,693

3.0%

$424,889

20.1%

$479,601

22.6%

$149,371

7.0%

$575,269

27.2%

$99,870

4.7%

$(1,178,075)

$1,102,406

$589,628

53.5%

$450,389

40.9%

$19,926

1.8%

$42,463

3.8%

 

$1,981,171

$246,103

12.4%

$50,478

2.6%

$531,670

26.8%

$493,421

24.9%

$142,459

7.2%

$282,233

14.3%

$234,807

11.8%

$(878,765)

SUPPLEMENTARY INFORMATION

FY 2003

FY 2002

FY 2001

! Employment Statistics (Approximate)

          Full Time Employees

          September through May (Temporary)

          June (Temporary)

          July through August (Temporary)

! Selected Activity Measures

          Estimated Attendance (Unaudited)

          Grandstand Shows – Tickets Sold (Unaudited)

          Grandstand Show Revenues

          Grandstand Show Expenditures

! Competitive Events

          9; Competitive Events Revenues

          9; Competitive Events Expenditures

! Pari-mutuel Wagering

          Pari-mutual Wagering Receipts

          Pari-mutual Wagering Expenditures

 

3

4

9

157

 

270,346

19,331

$255,951

$314,306

 

$20,361

$193,516

 

$72,832

$172,682

 

3

4

2

146

 

500,854

12,816

$217,415

$630,906

 

$20,360

$206,295

 

$99,538

$168,466

 

3

5

5

120

 

447,955

21,668

$356,539

$567,998

 

$19,926

$194,797

 

$136,026

$204,353

AGENCY DIRECTOR

During Audit Period: Mr. Joseph Hampton (7/1/01 to 4/28/03); Mr. Charles A. Hartke (4/29/03 to Present)

Currently: Mr. Charles A. Hartke

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Parking passes tested were missing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DuQuoin employed 269 temporary employees at a total cost of $605,547

 

 

 

 

 

60% of temporary employees were not required to use a time clock

 

 

 

 

Employees were not required to sign timesheets

 

 

Required forms not completely filled out

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

NEED TO IMPROVE SUPERVISION OF FAIR PARKING

The DuQuoin State Fair parking supervisors did not adequately supervise parking on the fairgrounds.

Parking passes at the DuQuoin State Fair cost $4 per day. During our audit testing we observed that many vehicles in the parking lots on the fairgrounds had no visible parking passes.

Parking passes were tested on 2 different days, with the following results: 32 (8%) out of 405 vehicles in the main lot and 20 (21%) out of the 96 vehicles in Lot 1 were missing passes during the first day’s testing, and 22 (7%) out of 305 vehicles in the main lot were missing passes during the second day’s testing. The parking supervisors were not adequately observing whether the sellers were properly issuing passes to vehicles or if vehicles were entering the parking lots in the correct manner.

Fair officials stated that they do not believe they can enforce the placement of parking passes and believe the system in place to monitor payment for parking at the parking gates is adequate. (Finding 2, page 10)

We recommended that DuQuoin State Fair management develop procedures for the parking supervisors to follow to ensure that all vehicles entering the fairgrounds parking have paid for and received their parking pass and appropriately displayed the pass in the vehicle. Fair management should also consider enforcing the rules requiring that vehicles be towed if parking passes are not appropriately displayed in their vehicles.

Department officials agreed with the finding and noted in their response that they have taken action to improve supervision over fair parking passes.

 

NEED TO IMPROVE TIMEKEEPING SYSTEM FOR TEMPORARY EMPLOYEES

There were weaknesses in the timekeeping system for temporary employees.

The DuQuoin State Fair (Fair) employed over two hundred temporary employees at the 2003 Fair with a total payroll of $605,547. The Fair employed fifteen supervisors to manage the work of the Fair temporary employees. During the 2003 Fair, we noted the following condition and weaknesses in time reporting for temporary employees:
    • 162 (60%) of 269 temporary employees were not required to use time clocks. There was no written documentation of when those employees began and ended their workday. Nothing was submitted by the employees to substantiate how many hours that they worked. The supervisors for those areas kept track of the time for all such employees.
    • There was not a procedure to require the employees to sign their time cards or the timesheets prepared by the supervisors to certify correctness.
    • For some employees, a required form was not completely filled out (Form I-9, employment verification).

Good internal control procedures would require all temporary employees to use time clocks to track the time they have worked and to sign their timecards each pay period. In addition good internal control procedures would require human resource personnel to ensure that temporary employees complete all the required personnel forms including the Form I-9 before they are hired for employment.

Department of Agriculture personnel stated that time clocks were not tested prior to commencement of the Fair to determine they were in good working condition. Department personnel also noted that there were several new supervisory employees who were not familiar with procedures. (Finding 3, page 11)

We recommended the Department review and develop procedures to strengthen controls over temporary employee payroll.

Department officials indicated in their response that they are reviewing employee payroll procedures to strengthen controls.

OTHER FINDINGS

The remaining findings are less significant and are reportedly being given attention by Department management. We will review the progress toward implementation of our recommendations during our next audit.

Mr. Thomas Jennings, Chief of Staff, provided the responses to our findings and recommendations.

FINANCIAL RESULTS OF THE FAIR

Fair expenditures exceeded revenues by $488,815 and $1,178,075 for the years ended September 30, 2003 and 2002, respectively. (page 17)

AUDITORS’ OPINION

Our auditors subjected the supplementary financial information of the DuQuoin State Fair to the tests and other auditing procedures applied in our special State financial related audit testing and internal control review. With respect to the items tested no matters were noted that require adjustment to the supplementary information.

 

 

_______________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

Our Special assistant auditors for this audit were Sleeper, Disbrow, Morrison, Tarro & Lively, LLC.