REPORT DIGEST

OFFICE OF BANKS AND REAL ESTATE

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2000

Summary of Findings:

Total this audit 7
Total last audit 13
Repeated from last audit 3

Release Date:
March 29, 2001

 

 

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 TDD (217) 524-4646

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

  

 

 

SYNOPSIS

 
  • The Agency did not place certain past due accounts receivable in the Comptroller’s Offset System.
  • The Agency did not perform audits of major systems of internal accounting and administrative controls.

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

OFFICE OF BANKS AND REAL ESTATE
FINANCIAL AND COMPLIANCE AUDIT
For The Two Year Ending June 30, 2000

EXPENDITURE STATISTICS

FY 00

FY 99

FY 98
Total Expenditures (All Funds)

$26,173,653

$24,224,599

$22,946,662
OPERATIONS TOTAL
% of Total Expenditures

$25,925,794
99.0%

$24,121,729
99.6%

$22,871,441
99.7%
Personal Services
% of Total Expenditures
Average Number of Employees

$15,017,159
57.9%
278

$14,034,823
58.2%
277

$13,673,342
59.8%
271
Other Payroll Costs (FICA, Retirement)
% of Total Expenditures

$4,868,732
18.8%

$4,446,677
18.4%

$3,753,894
16.4%
Contractual Services
% of Total Expenditures

$2,469,229
9.5%

$2,304,368
9.6%

$2,119,130
9.3%
Electronic Data Processing
% of Total Expenditures

$1,372,160
5.3%

$1,349,285
5.6%

$1,187,307
5.2%
Travel
% of Total Expenditures

$1,127,978
4.4%

$1,189,601
4.9%

$1,174,750
5.1%
Other Expenditures
% of Total Expenditures

$1,070,536
4.1%

$796,975
3.3%

$963,018
4.2%
NonAppropriated/Locally Held Funds Total
% of Total Expenditures

$247,859
1.0%

$102,870
.4%

$75,221
.3%
Cost of Property and Equipment

$4,295,684

$4,506,236

$4,364,763
SELECTED ACTIVITY MEASURES (unaudited)

June 30, 2000

June 30, 1999

June 30, 1998

Trust Companies, Trust Departments of State Banks, Savings and Loans, and Foreign Corporate Fiduciaries Regulated

State Chartered Banks Regulated
Foreign Banking Offices Regulated
Financial Information Systems Regulated

Pawnshops Regulated

State-Chartered Savings and Loan Associations, Savings Banks, and Service Corporations Regulated

Mortgage Banking Licenses in Force

 


336

519
28
596

221

 

94

1,551

 


352

519
31
460

207

 

100

1,383

 


366

545
36
453

0

 

115

1,187
 

FY 2000

FY 1999

FY 1998
Real Estate
Initial Applications Received
Renewals Issued
Cases Opened
Real Estate Appraisers
Applications Received
Renewals Issued
Complaints Against Licenses
Auctioneers
Initial Applications Received (law effective 1/1/00)
Complaints against licensees


7,799
29,556
1,421

1,488
589
202


1,333
166


6,238
54,725
1,195

1,892
4,689
164


0
0


6,608
29,679
699

400
3,800
110


0
0
AGENCY COMMISSIONER(S)
During Audit Period: Mr. William Darr
Currently: Mr. William Darr
 

 

 

 

Past due accounts receivable were not placed in the Comptroller's Offset System

 

 

 

 

 

 

 

 

 

 

 

 

Internal audits were not performed on major systems

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO IMPROVE PROCEDURES RELATED TO PAST DUE ACCOUNTS RECEIVABLE

The Agency did not place past due accounts receivable in the Comptroller’s Offset System. During audit testing, it was noted at June 30, 2000, the Agency had three accounts receivable balances over $1,000 totaling $9,500 which were over 90 days old and had not been placed in the Comptroller's Offset System. It was also noted at June 30, 2000 that the Agency had two accounts receivable balances totaling $20,000, that had been submitted to the Comptroller's Offset System but were returned due to lack of information.

We recommended the Agency routinely review outstanding accounts receivable to determine that collection attempts have been made and that those receivables over $1,000 and 90 days old are promptly placed in the Comptroller’s Offset System. The Agency also needs to maintain adequate information to properly submit accounts receivable balances to the Comptroller's Offset System. (Finding 00-2, page 12) This finding has been repeated since 1996.

Agency officials concurred with the recommendation and indicate they have taken action to submit the three accounts receivable to the Comptroller's Offset System and the remaining two accounts receivable to the Attorney General's Office. (For Previous Agency responses, see digest footnote #1.)

NONCOMPLIANCE WITH THE FISCAL CONTROL AND INTERNAL AUDITING ACT

The Agency did not perform audits of major systems of internal accounting and administrative controls at least once every two years. The Internal Audit Department should have tested the following areas as submitted in the two year audit plan: Personnel/payroll, fixed assets/property control, travel, telecommunications, operations of auto, contractual services, printing, revenues/receivables, petty cash/local funds, GAAP reporting, and lapse period expenditures.

We recommended the Agency allocate staff and resources necessary to ensure compliance with the Fiscal Control and Internal Auditing Act. (Finding 00-4, page 14)

Agency officials concurred with our recommendation and stated they are re-evaluating the Agency's internal audit goals and assessing the need to hire additional audit staff.

OTHER FINDINGS

The remaining findings are less significant and are being given attention by Agency management. We will review progress toward implementation of our recommendations during our next audit.

Mr. William Darr, Commissioner, provided responses to our recommendations.

AUDITORS’ OPINION

Our auditors state the Office of Banks and Real Estate financial statements as of June 30, 2000 and 1999, and for the years then ended, are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

SPECIAL ASSISTANT AUDITORS

Clifton Gunderson L.L.C. were our special assistant auditors for this audit.

DIGEST FOOTNOTE

#1 NEED TO IMPROVE PROCEDURES RELATED TO PAST DUE ACCOUNTS RECEIVABLE

1998: The Agency agrees with this finding and is in the process of placing past due accounts receivable in the Comptroller's Offset System.

1996: The Agency concurs with this finding and has begun the filing process by contacting the debtor to start the hearing process.