REPORT DIGEST

ILLINOIS ARTS COUNCIL

COMPLIANCE

EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit                          3

Total last audit                          3

Repeated from last audit           0

Release Date:

March 2, 2006 

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

Attn:  Records Manager

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

·        The Arts Council did not have adequate controls over employee timekeeping requirements.

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

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

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

$19,591,515

$17,986,834

$18,588,741

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

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

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

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

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

$1,679,532

8.6%

$1,090,997

65.0%

20

$1,615,069

9.0%

$1,082,236

67.0%

19

$1,787,021

9.6%

$1,200,698

67.2%

23

                Other Payroll Costs (FICA, Retirement)...............

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

$257,172

15.3%

$197,452

12.2%

$263,720

14.8%

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

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

$189,521

11.3%

$189,217

11.7%

$181,433

10.1%

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

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

$141,842

8.4%

$146,164

9.1%

$141,170

7.9%

          GRANTS TOTAL...............................................

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

$17,911,983

91.4%

$16,371,765

91.0%

$16,801,720

90.4%

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

$182,855

$178,042

$184,916

SELECTED ACTIVITY MEASURES

FY 2005

FY 2004

FY 2003

   Federal Grant Receipts..............................................

$679,800

$608,000

$678,400

  Grant Applications Received (Not examined)..............

2,533

2,164

2,480

EXECUTIVE DIRECTOR

     During Audit Period:  Richard Carlson, Acting Interim Executive Director (7/1/03 to 2/28/05)

                                        Mr. Terry Scrogum (3/1/05 to 6/30/05)

     Currently:                   Mr. Terry Scrogum

The Agency did not require

employee timesheets

documenting the employees’

time spent each day on

official business

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

IMPROPER TIMEKEEPING PRACTICES   

        The Illinois Arts Council did not have adequate controls over employee timekeeping requirements.

        The Agency did not require employee timesheets documenting the employee’s time spent each day on official State business to the nearest quarter hour, in accordance with the State Officials and Employees Ethics Act (5 ILCS 430/5-5).  (Finding 2, page 10)

        The Arts Council agreed with our recommendation to establish policies and procedures which will ensure timesheets were being prepared, submitted, and maintained as required.  The Arts Council stated they have asked the Department of Central Management Services (DCMS) for direction about how to best implement this requirement and the Council will implement the procedure DCMS recommends.

OTHER FINDINGS

           The remaining finding dealt with untimely employee performance evaluations and untimely approval of contractual agreements. We will review progress toward implementation of all recommendations during the next audit

__________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

           Our special assistant auditors on this audit were De Raimo Hillger & Ripp.