REPORT DIGEST

ILLINOIS STATE FAIR

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2017

Release Date:  April 26, 2018

FINDINGS THIS AUDIT:  3

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  2 -- 1 -- 3
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 1 -- 3

FINDINGS LAST AUDIT: 2

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

• (17-2) Noncompliance with provisions of the
Illinois Horse Racing Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE ILLINOIS HORSE RACING
ACT

The Illinois State Fair (ISF) was not in
compliance with the Illinois Horse Racing Act
of 1975.  During testing, we noted the
following:

• The ISF is required to provide at least a 5
day racing program to be conducted at the
State Fair each year; however, the ISF
provided only a 4 day racing program in
Fiscal Years 2017 and 2016.

• The nominating, sustaining, and starting
fee of $200 to be paid by entrant exceeded
the 2% purse for 8 of 40 (20%) races in 2017
and 8 of 32 (25%) races in 2016.  The
nominating, sustaining, and starting fee
exceeded 2% of the purse by 67% for the races
held at the 2017 and 2016 ISF.  (Finding 2,
pages 12-13)  This finding has been repeated
since 2011.

We recommended the ISF comply with the
provisions of the Illinois Horse Racing Act
or seek legislative remedy.

Fair officials agreed with the finding and
stated they will look into the possibility of
legislative remedy.  (For the previous
Department response, see Digest Footnote #1.)

OTHER FINDINGS

The remaining findings pertain to weaknesses
in receipt and expenditure reconciliations
and weaknesses in contract administration.
We will review the ISF’s progress towards the
implementation of our recommendations in our
next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the ISF for the two years
ended September 30, 2017, as required by the
Illinois State Auditing Act.  The accountants
stated the ISF complied, in all material
respects, with the requirements described in
the report.

This compliance examination was conducted by
Adelfia LLC.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

FJM:skm

DIGEST FOOTNOTES

#1 – NONCOMPLIANCE WITH THE ILLINOIS HORSE
RACING ACT – prior response

2015:	The Department agrees with the
finding and will continue to strive to comply
while legislative remedies are being sought.