REPORT DIGEST

ILLINOIS DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR

COMPLIANCE AUDIT AND SUPPLEMENTARY FINANCIAL INFORMATION
For the Two Years Ended:
September 30, 1997

Summary of Findings:

Release Date:
April 15, 1998

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 Department is not following appropriate methodology for charging fair costs among line items. This condition has existed since 1993.

• The Department does not reconcile grandstand ticket sales to grandstand deposits recorded by the State Comptroller.
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• Total Revenue
  Tickets
  % of Revenue
  Space Rental: Fair
  % of Revenue
  Space Rental: Non-Fair
  % of Revenue
  Entry Fees
  % 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
  Non-Fair Activities
  % of Expenditures
  All Other Operations Items
  % of Expenditures
• (Deficiency) of Revenues Over Expenditures

$1,288,281
$600,803
47%
$417,654
32%
$241,258
19%
$28,566
2%
$1,569,763
$188,098
12%
$29,818
2%
$403,340
26%
$467,547
30%
$154,280
10%
$241,312
15%
$85,368
5%
$(281,482)

$1,194,566
$600,266
50%
$410,838
34%
$161,405
14%
$22,057
2%
$1,593,652
$212,262
13%
$24,657
1%
$379,519
24%
$491,400
31%
$152,535
10%
$212,438
13%
$120,841
8%
$(399,086)

$1,283,135
$668,906
52%
$396,476
31%
$194,003
15%
$23,750
2%
$1,707,623
$199,664
12%
$26,996
1%
$489,565
29%
$490,550
29%
$159,594
9%
$245,254
14%
$96,000
6%
$(424,488)

FY 1997

FY 1996

FY 1995

• 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
• Pari-mutuel Wagering Receipts
  Pari-mutuel Wagering Receipts
  Pari-mutuel Wagering Expenditures

5
8
13
310

400,000
28,339
$390,538
$450,765

$153,339
$206,855

5
4
14
320

378,000
37,138
$392,817
$583,885

$108,696
$156,467

6
5
6
272

364,105
31,980
$474,067
$544,509

$141,858
$189,075

During Audit Period: Ms. Rebecca Doyle
Currently: Ms. Rebecca Doyle

The Department is not following appropriate methodology for charging fair costs

The unreconciled difference [1996] indicated sales exceeded receipts by approximately $8,000

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EXPENDITURES CHARGED TO INCORRECT LINE ITEMS

The Department is not following appropriate methodology for charging fair costs among line items.

The Department charged approximately $5,500 of Du Quoin State Fair costs to the Department's "non-fair" expenditure line item. These included golf cart rentals, t-shirts, and Du Quoin State Fair books. In addition, the Department circumvented appropriation restrictions by transferring employees of the Division of the Executive Office to the Division of Fairs and Horseracing's appropriation. In fiscal years 1996 and 1997, the Fairs and Horseracing appropriation was charged $28,724 and $87,460, respectively, for Executive Office employees, and its non-fair appropriation was charged $28,571 and $64,229, respectively, for Du Quoin State Fair employees. (Finding 1, page 9) This finding has been repeated since 1993.

We recommended the Department develop appropriate methodology for charging fair costs among line items as specified in the Department's appropriation. The Department agrees with this finding and states it is developing a consistent and documented methodology for charging fair costs among line items. (For previous Agency responses, see Digest Footnote #1.)

WEAKNESSES IN RECONCILING GRANDSTAND TICKET SALES

The Department does not reconcile grandstand ticket sales reported by Ticketmaster to grandstand deposits recorded by the State Comptroller. Differences between sales and deposits may occur because of bad checks, refunds, or other adjustments. Our auditors were able to help reconcile 1997 sales and deposits, but the Department was unable to reconcile 1996 sales and deposits. The unreconciled difference indicated sales exceeded receipts by approximately $8,000. (Finding 3, page 12)

We recommended the Department reconcile the Ticketmaster sales reports to deposits recorded by the State Comptroller. The Department agrees with this finding and will reconcile sales reports to deposits.

OTHER FINDINGS

The other two findings were less significant and were being given appropriate attention by the Department. We will review progress toward implementing all recommendations in our next audit.

AUDITORS' OPINION

The Du Quoin State Fair's funds were audited in our financial audit of the Illinois Department of Agriculture.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Sikich Gardner & Co, LLP.

DIGEST FOOTNOTES

#1 EXPENDITURES CHARGED TO INCORRECT LINE ITEMS - Previous Agency Responses

1995: "The Department concurs. It should be noted that some expenditures relate to both fair and non-fair activities. When this occurs, the Department must assign costs as they deem appropriate."

1993: "The Department concurs in part. The Department has determined that it is necessary to charge 20% of non-fair related revenue received by the Office of Fairs and Horse Racing to pay administrative expenditures incurred by the Office of the Director (formerly the Division of Administrative Services). Some fair expenditures must be paid prior to the Department receiving its appropriation. This late receipt of funds made it necessary to utilize funds from non-fair revenue."