REPORT DIGEST

DUQUOIN STATE FAIR

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  June 22, 2022

FINDINGS THIS AUDIT:  7

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  1 -- 5 -- 6
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 6 -- 7

FINDINGS LAST AUDIT:  10

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

• (21-6) The DuQuoin State Fair did
not have adequate controls over
camping revenue to ensure all revenues
for camping were received.

• (21-1) Due to ambiguous language
within the Illinois Horse Racing Act
of 1975, we were unable to conclude
whether the DuQuoin State Fair was in
compliance with the Act during the
examination period.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER CAMPING
REVENUE

The DuQuoin State Fair (DSF) did not
have adequate controls over camping
revenue to ensure all revenues for
camping were received.

The DSF rents campsites at the
fairgrounds during the time of the
DuQuoin State Fair.

We requested the DSF provide us a
population of camping permits issued
during the 2021 Fair. In response to
our request, the DSF was unable to
provide adequate documentation
demonstrating the accuracy of the
population of camping permits issued.

Due to these conditions, the
accountants were unable to conclude
the DSF’s population records were
sufficiently precise and detailed
under the Attestation Standards
promulgated by the American Institute
of Certified Public Accountants (AT-C
§ 205.35) to fully test the DSF’s
camping permits.

Despite the population limitations
noted above, which hindered our
ability to conclude whether the
selected samples were representative
of the population as a whole, we
selected a sample from the camping
permits identified by the DSF,
performed testing, and identified the
following deficiencies:

• Eight of 41 (20%) camping permits
tested were not displayed by campers
during the time of observation.

• Two of 41 (5%) of camping permits
tested, amounting to $275, had dates
covered that did not agree with the
permit receipt, ranging in differences
from 4 to 6 days.

• One of 41 (2%) of camping permits
tested, amounting to $100, was missing
the payment date on the camping
receipt. As a result, we were unable
to determine timeliness of deposit.
(Finding 6, page 20-21)  This finding
has been reported since 2013.

We recommended the DSF strengthen its
internal controls over camping permits
and revenue collection procedures.

DSF officials accepted the finding and
stated it will continue to advise
campers where to place the permits.
DSF will also begin posting flags in
front of each campsite to show check
in/out dates. DSF will be painting
lines throughout the campground to
allow for easier mapping and
monitoring of campers coming and
going. In addition, DSF has simplified
the camping application/receipt
allowing for more clarity of amount
owed/paid and check in/out dates.

AMBIGUOUS STATUTORY LANGUAGE

Due to ambiguous language within the
Illinois Horse Racing Act of 1975
(Act) (230 ILCS 5/31(j)(3))), we were
unable to conclude whether the DuQuoin
State Fair (DSF) was in compliance
with the Act during the examination
period.

The Illinois Horse Racing Act (230
ILCS 5/31(j)(3)) states, “…at least a
5-day racing program shall be
conducted at the State Fair each
year….”

Since the release of the DSF’s State
Compliance Examination for the two
years ended September 30, 2011, we
have interpreted § 31(j)(3) of the Act
to mean a five day racing program
should be annually conducted at both
the DSF and the  Illinois State Fair
(ISF). Our consistent recommendation
over the past ten years has been the
DSF should either hold a five-day
racing program or seek legislative
remedy.  The DSF has consistently
agreed with this recommendation over
the past ten years.

However, during the current period’s
examination, DSF management has
reviewed and reassessed its
interpretation of the definition of
the term “State Fair” within § 31(j)
(3) of the Act.  According to DSF
officials, they conducted an in-depth
review of the whole Act, particularly
§ 31(l) and § 31(g) of the Act, to
conclude the Act requires a total
five-day racing program between both
the DSF and ISF.   As the DSF held a
two-day racing program and the ISF
held a four-day racing program during
2021, DSF management believes it is in
compliance with the Act.

When re-reading the Act in its
entirety, we noted the Act appears to
have made, at least, some distinction
between the DSF and ISF.  We noted
some sections of the Act appear to use
ISF and “State Fair” interchangeably,
and other sections appear to use
“State Fair” as meaning both fairs.
However, most sections of the Act
refer to ISF as the “Illinois State
Fair” and the DSF as the “DuQuoin
State Fair.” We also were unable to
determine if a typographical error
existed by omitting an “s” at the end
of “State Fair” when the legislation
was drafted.  Further, we noted “State
Fair” is not defined by the Act.  As
such, we concluded an ambiguity exists
within the Act as currently drafted on
how to interpret the Act’s racing
program requirement. (Finding 1, page
11-12)  This finding has been reported
since 2011.

We recommended the DSF either hold a
five-day racing program or work with
the General Assembly to seek
legislative remedy to clarify the
meaning of the term “State Fair”
within the Act, as the State has both
the DSF and the ISF.

DSF officials accepted the finding and
stated it will do its best to hold a
five-day racing program, unless an
alternate racing program is requested
by the Illinois Standardbred Breeders
Fund Advisory Board pursuant to
Section 31(j)(3) of the Horse Racing
Act of 1975.

OTHER FINDINGS

The remaining findings pertain to
inadequate controls over competitive
events, gates and parking admissions,
grandstand ticket office receipts, and
space rentals, and weaknesses in
contract administration. We will
review the DSF’s progress towards the
implementation of our recommendations
in our next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the DSF for the two
years ended September 30, 2021, as
required by the Illinois State
Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2021-006.
Except for the noncompliance described
in this finding, the accountants
stated the DSF complied, in all
material respects, with the
requirements described in the report.

This compliance examination was
conducted by Adelfia LLC.

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

FJM:jv