REPORT DIGEST

DEAF AND HARD OF HEARING COMMISSION

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit                          2

Total last audit                          1

Repeated from last audit           0

Release Date:

February 9, 2006 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

·        The Commission made efficiency initiative payments from improper line item appropriations.

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

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

     Total Expenditures (All Funds)...................

$548,273

$520,526

$597,463

         Personal Services...................................

            % of Total Expenditures....................

            Average No. of Employees...............

$344,766

62.9%

7

$304,736

58.5%

6

$355,775

59.5%

7

       Other Payroll Costs (FICA, Retirement).....

            % of Total Expenditures....................

$77,164

14.1%

$49,653

9.5%

$76,127

12.7%

         Contractual Services...............................

            % of Total Expenditures....................

$41,858

7.6%

$83,189

16.0%

$87,109

14.6%

         Lump Sums…………………………………….

           % of Total Expenditures……………………...

$24,893

4.5%

$29,494

5.7%

$22,440

3.8%

         All Other Operations Items.....................

             % of Total Expenditures....................

$59,592

10.9%

$53,454

10.3%

$56,012

9.4%

     Cost of Property and Equipment..................

$215,748

$212,467

$224,569

SELECTED ACTIVITY MEASURES

FY 2005

FY 2004

FY 2003

Public inquiries addressed

Materials distributed *

Promotional items distributed

Complaints satisfactorily resolved

Library materials loaned

Newsletter subscribers

Workshops presented

13,200

11,000

13,000

25

420

10,000

75

12,357

16,935

22,003

24

298

9,338

49

11,327

131,986

38,381

25

457

12,306

55

*FY04 and FY05 reported numbers do not include internet distribution of materials as in FY03.

AGENCY DIRECTOR

     During Examination Period:  Gerald Covell, Director (7/1/03-8/8/03)

                                                     Janet Lambert, Acting Director (8/8/03-3/1/04)

                                                     John Miller, Director (effective 3/1/04)

     Currently:  John Miller, Director

Commission did not receive guidance or documentation with the billings

Commission reported no savings were experienced

Efficiency initiative payments totaled $658.35

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

     EFFICIENCY INITIATIVE PAYMENTS

      The Deaf and Hard of Hearing Commission (Commission) made payments for efficiency initiative billings from improper line item appropriations

      The State Finance Act details that the amount designated as savings from efficiency initiatives implemented by the Department of Central Management Services (CMS) shall be paid into the Efficiency Initiatives Revolving Fund.  “State agencies shall pay these amounts…from the line item appropriations where the cost savings are anticipated to occur.”

      The Commission reported it did not receive guidance or documentation with the billings from CMS detailing where savings were to occur nor did CMS provide evidence of savings for the amounts billed.  Additionally, the Commission reported that it had not experienced any savings from the efficiency initiatives for which it was billed in FY04 and FY05.

      Two billings to the Commission from CMS for savings from efficiency initiatives totaled $658.35.   We found that the Commission made payments for these billings not from line item appropriations where the cost savings were anticipated to have occurred but from line items where Commission staff reported they had available appropriation lines.  The Commission used the personal services line item appropriation to pay the FY04 Online Legal Research Consolidation billing totaling $500.95.  The FY05 Procurement Efficiency Initiative billing totaling $157.40 was paid from a lump sum appropriation to the Commission for expenses relative to the operation of the Commission. 

      We recommended that the Commission only make payments for efficiency initiative billings from line item appropriations where savings would be anticipated to occur.  Further, the Commission should seek an explanation from the Department of Central Management Services as to how savings levels were calculated, or otherwise arrived at, and how savings achieved or anticipated impact the Commission’s budget. 

      The Commission accepted the finding and stated they will review any future billings in detail from CMS recommending efficiency initiative payments and obtain verification of cost savings for future payments from appropriation lines.

OTHER FINDING

      The remaining finding is less significant and is reportedly being given attention by the Commission.  We will review the Commission's progress toward implementation of our recommendations in our next examination

AUDITORS’ OPINION

      We conducted a compliance examination of the Commission as required by the Illinois State Auditing Act.   We have not audited any financial statements of the Commission for the purpose of expressing an opinion because the Commission does not, nor is it required to, prepare financial statements.

_________________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

AUDITORS ASSIGNED

        This examination was performed by staff of the Office of the Auditor General.