(In accordance with the Single Audit Act and OMB Circular A-133)

For the Two Years Ended:
June 30, 1998

Summary of Findings:

Total this audit 2
Total last audit 8
Repeated from last audit 1

Release Date:
September 2, 1999

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

 

• The Office of the Attorney General has not always complied with federal reporting deadlines for several fiscal reports.
• The Office of the Attorney General has not updated its rules and polices governing the Solicitation for Charity Act to cover recent legislative changes.

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

When reporting deadlines are not met, determining the status of programs is difficult, and future funding is jeopardized

The Office of the Attorney General has not updated its rules governing the Solicitation for Charity Act to cover recent statutory changes

FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

FEDERAL REPORTING DEADLINES NOT ALWAYS MET

The Office of the Attorney General has not always complied with federal reporting deadlines for several fiscal reports. For example, none of the six final program expense reports were submitted to the Illinois Criminal Justice Information Authority within the 45 day period specified in the grant agreement. Three of the 34 monthly performance reports examined were not submitted by the 15^th day of the following month. One of seven final performance reports was not submitted within 45 days of program expiration. When reporting deadlines are not met, determining the status of programs is difficult, and the Agency jeopardizes future federal funding. (Finding 98-1, pages 13-14). This finding is repeated from 1996.

We recommended the Agency implement measures to ensure reporting deadlines are met. The Office of the Attorney General responded that they had implemented new procedures in March 1999 and did not contemplate recurrence of this finding.

 

RULES GOVERNING SOLICITATION FOR CHARITY ACT NEED UPDATING

The Office of the Attorney General has not updated its rules governing the Solicitation for Charity Act since 1982. For instance, changes to the Act in 1992 required charities collecting under $4000 to register. Changes to the Act in 1997 required a registration fee and penalties for late registration. Neither of these changes were reflected in the Attorney General’s rules at the time of our audit. Charitable organizations are also required to file an annual report within six months of the close of their fiscal year. The Agency has no formal policies regarding this timeliness requirement. Agency staff said delinquent letters are mailed out approximately six and one-half months after the close of an organization’s fiscal year if they haven’t filed. If the report is not received within 10 to 12 months, the organization’s registration could be canceled. However, for charitable organizations with fiscal years ending December 31, 1997, no delinquent letters were sent because of staff shortages. (Finding 98-2, pages 15-16).

We recommended the Attorney General promulgate rules and policies to ensure charities are regulated according to the Act. The Office of the Attorney General responded it is in the process of drafting updated rules. In addition, policies and procedures were being revised to ensure consistent and timely regulation of all charitable organizations.

 

AUDITORS’ OPINION

Our auditors stated the Agency’s financial statements for the two years ended June 30, 1998 were fairly presented except for the effects of such adjustments, if any, as might have been determined to be necessary had they been able to examine evidence regarding year 2000 disclosures.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:pp

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were PricewaterhouseCoopers LLP.