REPORT DIGEST

 

DEPARTMENT OF AGRICULTURE

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

 

Summary of Findings:

Total this audit                  8

Total last audit                16

Repeated from last audit   3

 

Release Date:

June 5, 2008

 

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 TTY (888) 261-2887

 

This Report Digest and Full Report are also available on the worldwide web at

www.auditor.illinois.gov

 

 

 

 

 

 

SYNOPSIS

 

¨      The Department did not have adequate control over State property and did not report deletions accurately.

¨      The Department did not inspect weighing and measuring devices at least once annually as required by State law.

¨      The Soil Conservation Domestic Allotment Act contains obsolete provisions requiring preparation of an annual plan and the filing of an annual report with the U.S. Secretary of Agriculture.

¨      The Department did not report accidents on State vehicles in a timely manner.

 

 

 

 

 

 

 

 

 

 

 

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

 

 


DEPARTMENT OF AGRICULTURE

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2007

 

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

·         Total Expenditures (All Funds)...................

 

$124,478,201

$110,306,345

$100,242,380

     OPERATIONS TOTAL..................................

         % of Total Expenditures........................

$93,035,659

74.7%

$82,475,593

74.8%

$74,336,187

74.2%

         Personal Services...................................

            % of Operations Expenditures...........

            Average No. of Employees...............

            Average Salary per Employee...........

$20,748,000

22.3%

454

$45,700

$20,541,608

24.9%

457

$44,949

$21,123,001

28.4%

479

$44,098

         Other Payroll Costs (FICA, Retirement)..

            % of Operations Expenditures...........

$5,137,233

5.5%

$4,393,563

5.3%

$6,098,259

8.2%

   Interfund Cash Transfers........................

 % of Operations Expenditures..............

$38,995,540

41.9%

$26,524,680

32.2%

$25,287,592

34.0%

         Contractual Services...............................

            % of Operations Expenditures...........

$4,395,534

4.7%

$4,994,683

6.0%

$4,014,354

5.4%

         Lump Sum.............................................

           % of Operations Expenditures...............

$20,671,918

22.2%

$23,156,131

28.1%

$14,848,075

20.0%

         All Other Operations Items.....................

            % of Operations Expenditures.......................

$3,087,434

3.4%

$2,864,928

3.5%

$2,964,906

4.0%

     GRANTS, PERMANENT IMPROVEMENTS, AND REFUNDS EXPENDITURES - TOTAL

         % of Total Expenditures.................................

 

$31,442,542

25.3%

 

$27,830,752

25.2%

 

$25,906,193

25.8%

·         Cost of Property and Equipment.................

$191,029,620

$191,298,357

$190,402,931

SELECTED ACTIVITY MEASURES

FY 2007

FY 2006

FY 2005

Number of Inspections by Division*

       Agricultural Products.........................................

       Animal Health (Animals Tested).........................

      Animal Disease Laboratories (Tests Performed)..

Environmental Programs (Pesticide Misuse)........

Meat Inspections:

·            Livestock (Head)...................................

·            Plants/Brokers.......................................

·            Compliance Reviews..............................

Warehouses (Grain Examinations)......................

Weights & Measures (Devices)..........................

Total Cash Receipts.................................................

Total Federal Expenditures (in thousands)..................

Number of Stakes and Restricted Horse Races*........

Conservation Practices Program Projects Approved*

Total Marketing Expenditures (in thousands)*............

* Not Examined

**Information not available for this fiscal year

 

7,682

3,161

769,410

89

 

912,092

1,034

5,899

890

112,839

$62,876,610

$9,593

**

1,680

$3,332

 

 8,205

5,812

807,644

    84

 

993,223

1,015

6,990

883

 92,576

$43,147,911

$5,578

1,552

1,860

$3,590

 

7,566

15,753

751,269

    80

 

858,726

966

5,773

947

111,521

$42,354,964

$8,334

1,512

**

$3,564

AGENCY DIRECTOR

 

 

 

During Audit Period: Mr. Charles A. Hartke

Currently:  Mr. Tom Jennings (Acting)


 

 

 

 

 

 

 

 

 

 

Controls inadequate

 

 

 

Lost or stolen property

 

 

Property deletions were not reported in proper period

 

 

 

 

 

 

 

 

 

 

 

 

Agency officials agree with auditors

 

 

 

 

 

 

 

 

Annual inspections not performed

 

18% of inspections not performed in 2005 and 30% not performed in 2006

 

 

 

 

 

 

 

 

 

 

 

 

Agency officials agree with auditors

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Act no longer requires a plan and report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency officials agree with auditors

 

 

 

 

 

 

 

 

 

 

Auditor tests show accidents reported late

 

 

 

 

 

 

 

 

 

 

 

Agency officials agree with auditors

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

 

CONTROLS OVER STATE PROPERTY NEED IMPROVEMENT

 

The Department did not have adequate control over State property and did not report deletions accurately.

 

During our testing of the quarterly Agency Report of Fixed Assets we noted that 164 items totaling $168,410 of the total deletions of $584,394 (29%) for the two-year examination period were items that were lost or stolen.  The Department filed police reports for the stolen property and equipment.  We also noted that $109,503 of the total deletions reported of $584,394 (19%) for the two-year examination period was not reported in the quarter that the deletions occurred. 

 

Department personnel stated that some loss and theft of property occurs because of the agency’s large inspection staff that works in the field at all times. (Finding 1, page 10)

 

We recommended the Department strengthen its controls over State property to minimize loss or theft of items and ensure that deletions for each quarter are reported accurately and timely.

 

Agency officials agreed with our recommendation and stated they would strengthen controls over State property to minimize loss or theft of items and ensure that deletions for each quarter are reported accurately and timely in the report to the Illinois Office of the Comptroller.

 

 
WEIGHTS AND MEASURING DEVICES NOT INSPECTED EVERY TWELVE MONTHS

 

The Department did not inspect weighing and measuring devices at least once annually as required by State law.

 

We noted inspections were not performed for 22,182 of 125,410 weighing and measuring devices (18%) during calendar year 2005 and were not performed for 37,793 of 127,018 weighing and measuring devices (30%) during calendar year 2006.  The Department had 23 and 25 full-time inspectors in 2005 and 2006, respectively.

 

Department personnel indicated that the shortage of inspection staff prevented the Bureau from inspecting 100% of all known devices within each 12 month period.  (Finding 2, page 11)

 

We recommended the Department provide sufficient staff for the inspection of weights and measuring devices so that all such devices can be inspected annually as required by statute.

 

Agency officials agreed with our recommendation and stated they would maintain sufficient inspection staff to inspect all commercial weighting and measuring devices annually as required by statute. Agency officials stated they had already improved staffing levels and inspected 98.3% of devices in 2008.

 

OBSOLETE PROVISIONS OF STATE STATUE NOT ELIMINATED

 

The Soil Conservation Domestic Allotment Act (Act) contains obsolete provisions requiring the preparation of an annual plan and the filing of an annual report with the U. S. Secretary of Agriculture. 

 

The Act was passed in 1951 to carry out the provisions of the Soil Conservation and Domestic Allotment Act (Federal Act).  However, the Federal Act no longer requires such a plan and report, and none have been prepared for many years.  The Department did not introduce a bill to amend the Act to conform to the Federal Act. 

 

Department personnel stated they have not been able to get the provisions of this Act repealed because the number of matters they were allowed to introduce to the legislature was limited and they had other priorities.  (Finding 5, page 16)  This finding was first reported in 2003.

 

We recommended the Department continue in its efforts to obtain amendatory legislation to conform the Act to the Federal Act.

 

Agency officials agreed with our recommendation and stated they would continue in their efforts to obtain amendatory legislation to conform the Act to the Federal Act.  (For previous agency response, see digest footnote.)

 

 

ACCIDENTS ON STATE VEHICLES NOT REPORTED TIMELY

 

The Department did not report accidents on State vehicles in a timely manner.

 

During our detailed testing of operation of automotive expenditures, we noted that 10 of 30 accidents (33%) were not reported to the Department of Central Management Services (DCMS) timely.  The accidents were reported from 5 to 497 days late.

 

Department personnel stated that the accident reports were filed late due to employees’ not submitting the information to the agency in a timely manner.  (Finding 6, page 17)

 

We recommended the Department ensure timely reporting of accidents on State vehicles.

 

Agency officials agreed with our recommendation and stated they have notified bureau management and vehicle coordinators of their responsibility to file timely reporting of accidents.

 
 
 
OTHER FINDINGS

 

The remaining findings are reportedly being given attention by the Department.  We will review progress toward implementing our recommendations in our next examination.

 

 

 

 

_______________________________________

WILLIAM G. HOLLAND, Auditor General

 

 

WGH:JAF:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

McGladrey & Pullen LLP were our special assistant auditors for this State compliance examination.

 

DIGEST FOOTNOTE

 

OBSOLETE PROVISIONS OF STATE STATUTE NOT ELIMINATED – Previous Department Response

 

2005: The agency agrees with the finding and will continue its efforts to have the Act repealed.