REPORT DIGEST

DEPARTMENT OF AGRICLUTURE
DU  QUOIN STATE FAIR

COMPLIANCE AUDITAND SUPPLEMENTARY FINANCIAL INFORMATION

For the Two Years Ended:
September 30, 1999

Summary of Findings:

Total this audit             10
Total last audit               4
Repeated from last audit 0

Release Date:
September 7, 2000

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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
Attn: Records Manager
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

  • Advertising revenue for Fiscal Years 1998 and 1999 was deposited into the wrong fund.
  • The Du Quoin State Fair unnecessarily incurred ticket collection costs for contractors of auto races, horse races, and gospel shows.
  • Grandstand receipts were not timely deposited into the State Treasury.
  • The Du Quoin State Fair paid an invoice for $6,300 from Fiscal Year 2000 appropriations for services rendered during Fiscal Year 1999.

 

 

DU QUOIN STATE FAIR
COMPLIANCE AUDIT
For The Two Years Ended September 30, 1999

REVENUE AND EXPENDITURE STATISTICS

FY 1999

FY 1998

FY 1997

  • Total Revenue
       Tickets
          % of Revenue
       Space Rental:  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
       Horse Racing Purses
          % of Expenditures
       All Other Operations Items
          % of Expenditures
  • (Deficiency) of Revenues Over
      Expenditures

$1,003,849
$558,492
55.6%
$421,111
42.0%
$24,246
2.4%

$1,878,727
$276,104
14.7%
$52,793
2.8%
$431,398
23.0%
$478,959
25.5%
$141,046
7.5%
$375,231
20.0%
$123,196
6.5%


$(874,878)

$978,576
$543,667
55.6%
$403,472
41.2%
$31,437
3.2%

$1,864,674
$246,363
13.2%
$44,358
2.4%
$407,657
21.9%
$515,251
27.6%
$153,836
8.3%
$379,206
20.3%
$118,003
6.3%


$(886,098)

$1,047,023
$600,803
57.4%
$417,654
39.9%
$28,566
2.7%

$1,328,451
$188,098
14.2%
$29,818
2.2%
$403,340
30.4%
$467,547
35.2%
$154,280
11.6%
$0
0%
$85,368
6.4%


$(281,428)

SUPPLEMENTARY INFORMATION

FY 1999

FY 1998

FY 1997

  • 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
4
7
170

411,749
21,750
$338,236
$532,556

$133,836
$192,855

5
2
4
225

400,633
21,757
$356,861
$467,693

$118,390
$166,850

5
0
2
185

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

$153,339
$206,855
AGENCY DIRECTOR

During Audit Period: Ms. Rebecca Doyle (10/1/97 - 1/18/99), Mr. Joseph Hampton (1/19/99 - 9/30/99)
Currently: Mr. Joseph Hampton
















Advertising revenue of over $27,000 for FY 1998 and $60,000 for FY 1999 were deposited into the wrong fund










The Fair unnecessarily incurred ticket collection costs for contractors of auto races, horse races and gospel shows





























The Ticket Office did not timely deposit receipts into the State Treasury






















An invoice for $6,300 was paid from the wrong Fiscal Year appropriation

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

REVENUE NOT DEPOSITED INTO CORRECT FUND

Du Quoin State Fair advertising revenue of $27,675 for Fiscal Year 1998 and $60,402 for Fiscal Year 1999 was deposited into the State Fair Promotional Activities Fund rather than the Agricultural Premium Fund as required by the State Fair Act (20 ILCS 210/6). Fair officials said they were not aware of this deposit requirement. (Finding 3, page 12)

We recommended the future advertising revenue be deposited into the correct fund. Department officials accepted this recommendation.

INAPPROPRIATE COLLECTION OF MONEY FOR LESSEES

The lease agreements for auto races, horse races, and gospel shows provide only that the Du Quoin State Fair is responsible for providing ticket booths for the contractors. However, the Fair collected ticket admission fees for these events, thus unnecessarily incurring costs for Fair personnel, credit card fees, and losses on bad checks because ticket proceeds were commingled with other Fair revenue. Further, the Fair’s ticket contractor sold tickets for these events, the fees of which were also absorbed by the Fair instead of the event contractors. Deposits of cash for the full amounts of ticket sales were made to the accounts of the contractors with no reductions for any of the above costs. Because proceeds for auto races, horse races, and gospel shows were commingled with other Fair proceeds, the costs incurred by the Fair on behalf of these contractors could not be determined. (Finding 6, pages 15-16)

We recommended the Fair discontinue the practice of selling tickets for these events or modify the contracts to avoid incurring unnecessary costs. Department officials accepted this recommendation and stated they will continue to sell tickets to all grandstand events but will ensure that future contracts specifically provide for the services rendered by the Du Quoin State Fair.

 

 

GRANDSTAND RECEIPTS NOT DEPOSITED TIMELY

The Ticket Office did not deposit receipts in a timely manner. The State Officers and Employees Money Disposition Act requires that a single receipt of $10,000 or more be deposited into the State Treasury the same day; receipts of $10,000 or more be deposited into the Treasury within 24 hours; and accumulations of receipts between $500 and $10,000 be deposited with 48 hours. Receipt testing for 44 days (June 29 through August 27, 1999) showed nine instances of receipts over $10,000 being deposited three to fourteen days after receipt and 35 instances of receipts from $500 to $10,000 being deposited from four to 14 days after receipt. Untimely deposit of funds can lead to errors and discrepancies and can result in loss of investment earnings for the State. (Finding 8, page 18)

We recommended the Department deposit receipts in accordance with the State Officers and Employees Money Disposition Act. Department officials accepted this recommendation and stated that receipts are now being deposited in accordance with the Act.

PAYMENT MADE FROM WRONG YEAR’S APPROPRIATION

The Du Quoin State Fair paid an invoice for $6,300 from Fiscal Year 2000 appropriations for services rendered during Fiscal Year 1999. The Fair’s Pari-Mutual contractor did not receive its 1998 satellite billing until 1999. The Fair reimbursed the contractor for the billing in October 1999 and charged the expenditure to the Fiscal Year 2000 appropriation. Recourse for payment when the time limit has expired may be made only through the Illinois Court of Claims. (Finding 9, page 19)

We recommended the Fair not make payments for services for which appropriations have lapsed. Department officials accepted this recommendation, stating the payment was inadvertent.

 

OTHER FINDINGS

The remaining findings were being given 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 and compliance 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 Sleeper, Disbrow, Morrison, Tarro & Lively.