REPORT DIGEST

ILLINOIS ARTS COUNCIL

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2013


Release Date:   January 23, 2014

Summary of Findings:
Total this audit: 3
Total last audit:  2
Repeated from last audit: 2

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, 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

• Formal rules for the Illinois Arts Council
were not drafted or adopted.

• The Illinois Arts Council did not reconcile
its cash receipts to cash receipts reported by
the Comptroller.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ADOPT FORMAL RULES FOR AGENCY AND
GRANT PROCEDURES

The Illinois Arts Council (Council) did not
draft or adopt formal agency rules, including
rules relating to grant procedures.  Grant
expenditures were $7,432,415 and $8,106,501 for
fiscal years 2013 and 2012, respectively.

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,
pages 9-10) This finding was first reported in
2007.

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

Council officials stated they have been in
contact with the Office of the Governor for
funding and will continue to seek guidance.
(For previous Council response, see Digest
Footnote #1)

FAILURE TO RECONCILE CASH RECEIPTS TO THE STATE
COMPTROLLER’S RECORDS

The Council did not monthly reconcile its cash
receipts received to cash receipts reported by
the State Comptroller.  Cash receipts were
$1,043,297and $1,148,834 for Fiscal Year 2013
and Fiscal Year 2012, respectively.

• In Fiscal Year 2013, a $10,000 receipt
reported on the Comptroller’s records in the
Illinois Arts Council Federal Grant Fund was not
recorded on the Council’s records.

• In Fiscal Year 2012, a $41 receipt reported on
the Comptroller’s records in the Illinois Arts
Council State Trust Fund was recorded on the
Council’s records as a receipt in the General
Revenue Fund.  (Finding 2, pages 11-12)

We recommended the Council perform monthly cash
receipt reconciliations and investigate any
irreconcilable differences as required by SAMS
Procedures.

Council officials stated they will perform
monthly cash receipt reconciliations as required
by SAMS procedures.

OTHER FINDING

The remaining finding in regard  to the failure
to implement an identity-protection policy is
reportedly being given attention by the Council.
Auditors will review the Council’s progress
towards the implementation of the recommendation
in the next engagement.

AUDITORS’ OPINION

A compliance examination of the Illinois Arts
Council as required by the Illinois State
Auditing Act was performed.  The Council has no
funds that require an audit leading to an
opinion on financial statements.

WILLIAM G. HOLLAND
Auditor General

WGH:JGR

AUDITORS ASSIGNED

Our special assistant auditors on this
engagement were McGreal & Company, PC.

DIGEST FOOTNOTES

#1 –  FAILURE TO ADOPT FORMAL RULES FOR AGENCY
AND GRANT PROCEDURES

2011:	The Agency does not currently have the
staff or legal support to engage in this
process.  Due to the State’s on-going financial
crisis, we do not anticipate IAC budget
increases to support such an initiative during
the next fiscal years.  The Agency will seek the
guidance of the Office of the Governor on this
finding.