REPORT DIGEST

ILLINOIS ARTS COUNCIL

COMPLIANCE EXAMINATION

For the Two Years Ended: June 30, 2009

Summary of Findings:

Total this audit: 3

Total last audit : 4

Repeated from last audit: 2

Release Date: March 9, 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, Attn: Records Manager, 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

• The Illinois Arts Council did not adopt formal Agency rules.

• Contractual service payment made from incorrect fiscal year appropriation.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ADOPT FORMAL RULES FOR AGENCY AND GRANT PROCEDURES

The Illinois Arts Council did not draft or adopt formal agency rules, including rules relating to grant procedures.

The Illinois Administrative Procedure Act (5 ILCS 100/5 et seq.) states that each agency shall maintain and file organizational rules, including a current description of the agency’s organization, current procedures for information requests, and a current description of the agency’s rulemaking procedures. (Finding 1, page 9)

We recommended the Agency draft organizational rules and grant procedures, then contact the Joint Committee on Administrative Rules (JCAR) for assistance with the formal adoption process.

Agency Officials stated they did not currently have the staff or legal support to engage in this process and due to the financial crises of the State, did not foresee funds being appropriated for this. The Agency will however, continue to seek guidance from the Office of the Governor on this finding.

CONTRACTUAL SERVICE PAYMENT MADE FROM INCORRECT FISCAL YEAR APPROPRIATION

The Illinois Arts Council paid for services from the incorrect fiscal year appropriation.

The Agency made a contractual service payment of $4,886 from fiscal year 2008 appropriations that included computer technical services performed in fiscal year 2009.

We recommended the Agency strictly adhere to the State Finance Act requirements that restrict appropriated funds to the fiscal year in which the services were rendered.

(Finding 3, page 11)

Agency officials stated they will monitor contractual needs more closely, especially as the end of the fiscal year approaches.

Agency officials stated they will monitor contractual needs more closely, especially as the end of the fiscal year approaches.

OTHER FINDING

The remaining finding dealt with expired terms for Council members. We will review progress toward implementation of all recommendations during the next compliance examination.

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this engagement were Robert J. Ripp & Associates.