REPORT DIGEST ILLINOIS STATE FAIR COMPLIANCE EXAMINATION FOR THE TWO YEARS ENDED SEPTEMBER 30, 2015 Release Date: December 15, 2016 FINDINGS THIS AUDIT: 2 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 0 -- 2 -- 2 Category 3: 0 -- 0 -- 0 TOTAL: 0 -- 2 -- 2 FINDINGS LAST AUDIT: 4 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 • (15-02) Noncompliance found with provisions of the Illinois Horse Racing Act. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH THE ILLINOIS HORSE RACING ACT During testing of all races held at the ISF in 2015 and 2014, we noted the following: • The nominating, sustaining and starting fee of $300 to be paid by an entrant exceeded 2% of the purse for 27 of 30 (90%) races in 2015 and 16 of 36 (44%) races in 2014. The nominating, sustaining and starting fee exceeded 2% of the purse by 0.5% to 19.1% for the races held at the 2015 ISF and 0.1% to 5.5% for the races held at the 2015 ISF. • The Illinois Horse Racing Act requires the Department of Agriculture to provide at least a 5-day racing program at the State Fair each year, which the program shall include at least the following races limited to Illinois conceived and foaled horses: (a) a two year old Trot and Pace, and Filly Division of each; (b) a three year old Trot and Pace, and Filly Division of each; (c) an aged Trot and Pace, and Mare Division of each. We found that the ISF provided a 4-day racing program in 2015. In addition, the 2015 ISF program did not include an aged Trot and Pace, and Mare Division limited to Illinois conceived and foaled horses. (Finding 02, pages 10-11) This finding was first reported in 2011. We recommended the ISF comply with provisions of the Illinois Horse Racing Act or seek legislative remedy to assist its compliance. Fair officials agreed with the finding and stated they will continue to strive to comply while legislative remedies are being sought. (For the previous Department response, see Digest Footnote #1) OTHER FINDINGS The remaining finding is reportedly being given attention by the Illinois State Fair. We will follow up on any progress toward implementation of our recommendations during the next examination of the ISF. AUDITOR’S OPINION We conducted a compliance examination of the Illinois State Fair as required by the Illinois State Auditing Act. The Fair has no funds that require an audit leading to an opinion of financial statements. FRANK J. MAUTINO Auditor General FJM:ETL SPECIAL ASSISTANT AUDITORS Sikich, LLP were our Special Assistant Auditors for this engagement. DIGEST FOOTNOTES #1 - NONCOMPLIANCE WITH THE ILLINOIS HORSE RACING ACT 2013: The Illinois State Fair agrees with the finding and will comply with provisions of the Illinois Horse Racing Act or seek legislative remedy to assist its compliance.