FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
MANDATORY SITE VISITS NOT PERFORMED
The Department did not complete required fiscal monitoring site visits for
subgrantees receiving federal grant funds under the Illinois Home Weatherization
Assistance Program for fiscal year 1999.
The Department receives approximately $7 million annually for this program and is
required to perform periodic on-site fiscal monitoring prior to closeout of grants. Of 18
grants tested, five were found to be noncompliant. No questioned costs were noted in the
five grants; however, on-site fiscal monitoring is a key element of internal control
relating to grants and should be performed. (Finding 99-1, pages 22-23)
We recommended the Department comply with the requirements of this grant program.
Department officials agreed and stated they would conduct on-site monitoring visits for
these grants prior to December 31, 2000. They will revise the State Plan to allow on-site
monitoring visits to be based on risk assessment criteria.
NONCOMPLIANCE WITH STATUTORY MANDATES
The Department has over 600 statutory mandates, of which many have been in place
since the early 1980’s. For some of the mandates, the Department believes compliance
is not possible due to lack of resources and other factors, even though appropriations
increased during the audit period. In some cases, mandates are no longer relevant or
applicable, but the Department has not taken action to have the mandates rescinded.
During the current and prior audit periods, we reviewed a sample of mandates and found
the Department to be noncompliant with several, including the requirement to establish a
consolidated clearinghouse containing all existing building requirements (the Building
Commission developed its own clearinghouse); the requirement to submit an economic review
to the General Assembly every two years (the Department cited lack of resources); the
requirement to facilitate and enhance the use of Illinois’ navigable waterways by
accepting applications and conducting a cost/benefit analysis for each project (the
Department cited lack of resources); and the requirement to create an advisory board to
study the potential reuse of Illinois military bases abandoned by the federal government
(the Department did not comply with this mandate because the required Board appointments
were never made).
Both current and prior years’ findings of noncompliance with certain statutory
mandates indicates the need for the Department to take a comprehensive approach to
addressing its problems in this area. (Finding 99-2, pages 24-26) This finding has been
repeated since 1990.
We recommended the Department allocate sufficient staff and resources to the Task Force
it formed in April, 1999, to review statutory mandates to ensure compliance with all those
applicable. The Department agreed, stating it has identified unfunded mandates and
unfunded permissive legislation to determine those needed to be amended or rescinded. (For
previous Department responses, see Digest footnote #1)
OTHER FINDINGS
The other two findings, which dealt with fixed asset reporting and procedures
for computer system changes, were less significant. We will review progress towards
implementation of all recommendations in our next compliance audit.
AUDITORS’ OPINION
Our auditors stated the Department’s financial statements as of June 30,
1999 were fairly presented.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:KMC:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were Friedman Eisenstein Raemer
and Schwartz, LLP.
DIGEST FOOTNOTE
#1 NONCOMPLIANCE WITH STATUTORY MANDATES – Previous Agency Responses.
1998: "The Department will form a task force to review the statutory
mandates. Current Year Issue 1. The Department will review the Export Trading
Company Act to determine if it should be rescinded. Prior Year Issue 1-3. The
Department will pursue legislation to rescind this legislation."
1996: "Accepted. A) Corridors of Opportunity and Development Act The
Department will pursue legislation to rescind this Act. B) Local Government The
Department will pursue legislation to amend this Act to reflect the current activities
performed under the Act. C) Unfunded Mandates". (Response goes on to list four
other mandates to which each the Department stated it will pursue legislation to rescind
this Act.)
1994 "The Department "Agreed" to
the recommendation to pursue legislation to have three of the five identified mandates
rescinded. It "Partially Agreed" to the recommendation for the other two
mandates, indicating they would attempt to amend the statute to more accurately reflect
the Department’s approach and resources for one of the mandates. In the case of the
other mandate they indicated there was no funding currently available, but thought the
program may be revised in future years and therefore would not take any action to rescind
the statute."
1992: "Partially Agree. We concur with the finding and recommendation only to the
extent that the Department has on several occasions tried to recommend legislation to
either fund or rescind various cited provisions." (Response continues with
explanations of past efforts and efforts to be undertaken.)
1990: "We concur with the finding and
recommendation only to the extent that the Department has on several occasions tried to
recommend legislation to rescind various of the cited provisions, and in at least one
example, has almost been successful in securing funding for the requirement."
(Response continues with explanations of past efforts and efforts to be undertaken.)
