REPORT DIGEST

ILLINOIS COURT OF CLAIMS

FINANCIAL AND COMPLIANCE AUDIT
(In Accordance with the Single Audit Act and OMB Circular A-128)
For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
March 24, 1998

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Illinois Court of Claims failed to file a contract with the Comptroller's Office and did not include all required certifications on one contract.

• The Illinois Court of Claims did not submit two of four required GAAP reports to the Comptroller's Office. Of the two reports that were filed, one was inaccurate and the other was late.
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• Total Expenditures (All Funds)
  
  OPERATIONS TOTAL
  % of Total Expenditures
  
  Personal Services
  % of Operations Expenditures
  Average No. of Employees
  Part-Time (including 7 judges)
  Full-Time
  
  Other Payroll Costs (FICA, Retirement)
  % of Operations Expenditures
  
  Contractual Services
  % of Operations Expenditures
  
  Lump Sum and Other Purposes
  % of Operations Expenditures
  
  All Other Operations Items
  % of Operations Expenditures
  
  GRANTS TOTAL
  % of Total Expenditures
  
  
  
• Cost of Property and Equipment

$32,018,769

$919,555
2.9%

$715,028
77.8%

47
3

$110,264
12.0%

$30,363
3.3%

$34,018
3.7%

$29,882
3.2%

$31,099,214
97.1%


$115,368

$18,132,020

$893,208
4.9%

$689,620
77.2%

49
3

$106,052
11.9%

$32,784
3.7%

$35,180
3.9%

$29,572
3.3%

$17,238,812
95.1%


$142,000

$23,365,476

$3,842,377
16.4%

$674,812
17.6%

50
3

$99,581
2.6%

$34,347
.9%

$3,006,694
78.2%

$26,943
.7%

$19,523.099
83.6%


$136,324

FY 1997

FY 1996

FY 1995

• Filing Fees Collected
  
  
• Total Claims Awarded
  
  
• Total Claims Denied
  
  
• Total Claims Dismissed
  

$7,543

5,193

1,241

1,768

$8,145

4,798

1,768

1,695

$8,950

4,207

805

1,731

During Audit Period: Roger A. Sommer

Currently: Roger A. Sommer

A contract was not filed with the Comptroller's Office as required by statute

All required certifications were not included on one contract tested

Two of four GAAP reports were not filed with the Comptroller's Office

Of the two GAAP reports filed, one was inaccurate and the other was not filed on a timely basis

INTRODUCTION

The Court of Claims consists of seven judges appointed by the Governor with the advice and consent of the Senate. The Office of the Secretary of State provides employees to perform administrative, accounting, and clerical duties and to serve the function of the Court of Claims.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTRACTING PROCEDURES

The Court of Claims (Court) failed to file a contract with the Comptroller's Office even though disbursements to the vendor totaled $14,591 in FY96 and $13,984 in FY97. In addition, the Court did not include the Educational Loan Certification on one contract tested.

The Comptroller's Act (15 ILCS 405/15) states, "Whenever a contract liability . . .exceeding $5,000 is incurred by any State agency, a copy of such contract, . . . shall be filed with the Comptroller within fifteen (15) days". The Educational Loan Default Act (5 ILCS 385/3) states "any contract used by any State agency shall include a statement certifying that the individual is not in default on an educational loan". (Finding 1, pages 17-18)

We recommended all contracts be filed with the Comptroller's Office as required by statute. We also recommended required statements and certifications be included in all contracts.

Agency officials stated a blanket obligation was established at the Comptroller's Office for such payments, and at no time did that office refuse to draw warrants nor was there any notice given by that office, in which case the Court's compliance would have been immediate. They also stated that several responsibilities historically held by the Clerk's Office have shifted to the Court, and that with sufficient funding to hire and maintain personnel to perform the various duties, the Court will endeavor to comply with all regulatory requirements.

FAILURE TO FOLLOW GAAP REPORTING GUIDELINES

The Court of Claims failed to submit two of four Generally Accepted Accounting Principles (GAAP) reports for both FY96 and FY97 to the Comptroller's Office. Of the GAAP reports that were filed, one contained inaccurate information and the other, which was to be filed on a quarterly basis, was filed late five times.

All GAAP reporting information supplied to the Comptroller's Office should be accurate and timely to ensure the Statewide financial statements are fairly presented. (Finding 2, pages 19-20)

We recommended steps be taken to ensure all required GAAP information is submitted accurately and on a timely basis to the Comptroller's Office.

Agency officials stated they accept the recommendation. They also stated that several responsibilities historically held by the Clerk's Office have shifted to the Court, and that with sufficient funding to hire and maintain personnel to perform the various duties, the Court will endeavor to comply with all regulatory requirements.

OTHER FINDINGS

The remaining findings are less significant and are being given appropriate attention by the Agency. We will review progress toward implementing the recommendations during the Agency's next audit.

AUDITORS' OPINION

The auditors state the Court of Claims' financial statements for the two years ended June 30, 1997 are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Geary & Salisbury, LTD were our special assistant auditors for this audit.