REPORT DIGEST

ILLINOIS STATE FAIR

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  June 22, 2022

FINDINGS THIS AUDIT:  6

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  3 -- 2 -- 5
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 3 -- 6

FINDINGS LAST AUDIT: 3

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

• (21-1) The Illinois State Fair did
not properly reconcile its financial
records.
• (21-2) Due to ambiguous language
within the Illinois Horse Racing Act
of 1975, we were unable to conclude
whether the Illinois State Fair was in
compliance with the Act during the
examination period.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

WEAKNESS IN RECEIPT RECONCILIATIONS

The Illinois State Fair (ISF) did not
properly reconcile its financial
records.

The ISF was unable to properly
reconcile the 2021 Fair receipts in
the Fair Management System (FMS) to
the Illinois Department of
Agriculture’s (Department) Receipting
System. The Department’s monthly
Deposit and Cash reconciliations have
not been completed or balanced.
Therefore, ISF was unable to provide
supporting documentation for Fiscal
Years 2021 adjustments entered in the
Department’s Receipting System to
ensure entries were correct and
supported. (Finding 1, page 10-11)
This finding has been reported since
2017.

We recommended ISF work with the
Department to ensure monthly receipt
reconciliations are performed,
reviewed, and approved. We also
recommended, after the reconciliations
are performed, the ISF notify the IOC
and resolve all differences noted
during the reconciliation process, if
applicable.

ISF officials accepted the finding and
stated ISF Management is working with
the Bureau of Budget and Fiscal
Services (BBFS) to establish a system
for monthly reconciliations between
ISF and BBFS. Further, ISF officials
stated it is also working with the
Department of Innovation and
Technology to replace the Fair
Management System (FMS), which is no
longer supported, with a program that
will work cohesively with established
software systems within the State’s
financial system.

AMBIGUOUS STATUTORY LANGUAGE

Due to ambiguous language within the
Illinois Horse Racing Act of 1975
(Act) (230 ILCS 5/31(j)(3))), we were
unable to conclude whether the
Illinois State Fair (ISF) was in
compliance with the Act during the
examination period.

The Illinois Horse Racing Act (230
ILCS 5/31(j)(3)) states, “…at least a
5-day racing program shall be
conducted at the State Fair each
year….”

Since the release of the ISF’s State
Compliance Examination for the two
years ended September 30, 2011, we
have interpreted § 31(j)(3) of the Act
to mean a five day racing program
should be annually conducted at both
the ISF and the DuQuoin State Fair
(DSF). Our consistent recommendation
over the past ten years has been the
ISF should either hold a five-day
racing program or seek legislative
remedy.  The ISF has consistently
agreed with this recommendation over
the past ten years.

However, during the current period’s
examination, ISF management has
reviewed and reassessed its
interpretation of the definition of
the term “State Fair” within § 31(j)
(3) of the Act.  According to ISF
officials, they conducted an in-depth
review of the whole Act, particularly
§ 31(l) and § 31(g) of the Act, to
conclude the Act requires a total
five-day racing program between both
the ISF and DSF.  As the ISF held a
four-day racing program and the DSF
held a two-day racing program during
2021, ISF management believes it is in
compliance with the Act.

When re-reading the Act in its
entirety, we noted the Act appears to
have made, at least, some distinction
between the DSF and ISF.  We noted
some sections of the Act appear to use
ISF and “State Fair” interchangeably,
and other sections appear to use
“State Fair” as meaning both fairs.
However, most sections of the Act
refer to ISF as the “Illinois State
Fair” and the DSF as the “DuQuoin
State Fair.” We also were unable to
determine if a typographical error
existed by omitting an “s” at the end
of “State Fair” when the legislation
was drafted.  Further, we noted “State
Fair” is not defined by the Act.  As
such, we concluded an ambiguity exists
within the Act as currently drafted on
how to interpret the Act’s racing
program requirement. (Finding 2, page
12-13)  This finding has been reported
since 2011.

We recommended the ISF either hold a
five-day racing program or work with
the General Assembly to seek
legislative remedy to clarify the
meaning of the term “State Fair”
within the Act, as the State has both
the DSF and the ISF.

ISF officials accepted the finding and
stated it will do its best to hold a
five-day racing program, unless an
alternate racing program is requested
by the Illinois Standardbred Breeders
Fund Advisory Board pursuant to
Section 31(j)(3) of the Horse Racing
Act of 1975.

OTHER FINDINGS

The remaining findings pertain to
weaknesses in contract administration
and inadequate controls over gates and
parking admissions, space rentals, and
temporary employee timesheets. 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, 2021, as
required by the Illinois State
Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2021-001.
Except for the noncompliance described
in this finding, 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:jv