REPORT DIGEST

DEPARTMENT OF AGRICULTURE

COMPLIANCE EXAMINATION

For the Two Years Ended: June 30, 2009

Summary of Findings:

Total this audit: 7

Total last audit: 8

Repeated from last audit: 4

Release Date: June 3, 2010

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

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SYNOPSIS

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

• The Department did not comply with the minimum mileage usage per month rules for its vehicles.

• The Department did not collect penalty fees required by the Soil Amendment Act.

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 Reports of Fixed Assets (Form C-15) for the two-year examination period, we noted:

• 218 items, totaling $193,098 of the total deletions reported of $686,493 (28%), were items that were lost or stolen.

• $6,872 was stolen equipment including a computer, GPS equipment printer, freezer, a cordless drill and a battery charger.

• $76,201 of the total deletions reported of $686,493 (11%) was not reported in the quarter that the deletion occurred.

• 4 of 60 (7%) vouchers tested, totaling $156,100, were not recorded in the Department’s property control records.

Department officials stated that property control was in a state of transition for a couple of years but has been assigned to one person since the end of fiscal year 2008. Department officials said lost and stolen property continues to remain a problem although the agency reduced its lost property by 36% from fiscal year 2009 to fiscal year 2010. (Finding #1, pages 10-11)

We recommended the Department strengthen its controls over State property to minimize loss or theft of items. In addition, we recommend the Department ensure that deletions for each quarter are reported accurately and timely on Form C-15 submitted to the Illinois Office of the Comptroller.

Agency officials agreed with the finding and indicated they are taking steps to minimize theft and loss, and to solve the recording and reporting issues.

FAILURE TO COMPLY WITH MINIMUM MILEAGE USAGE PER MONTH FOR VEHICLES

The Department did not comply with the minimum mileage per month rules for new and leased general purpose passenger vehicles.

During our testing, we noted 7 of the 37 (19%) vehicles tested did not comply with the minimum mileage usage of 1,500 miles per month. The mileage usage for these seven vehicles ranged from 322 miles to 1,481 miles per month.

Department personnel stated that failure to comply with the 1,500 mile rule was an oversight. (Finding #5, page 16)

We recommended the Department review the mileage usage of its general purpose passenger vehicles to ensure the requirement is being met or determine if it has a surplus of vehicles.

Agency officials agreed with the finding and stated they would review its vehicle fleet and the assignment of cars to individuals.

FAILURE TO COLLECT PENALTY FEES

The Department did not collect penalty fees required by the Soil Amendment Act.

During our testing, we noted 4 of 20 (20%) renewal registrations tested were received by the Department later than 30 days after the expiration date. The Department did not collect penalty fees for these late registrants.

Department personnel stated that failure to collect penalty fees for late applications was an oversight. (Finding #6, page 17)

We recommended the Department implement procedures to ensure that penalty fees are collected for late registrants. Agency officials agreed with the finding and indicated they began collecting the penalty collecting in January 2010.

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.