REPORT DIGEST

DEAF AND HARD OF HEARING COMMISSION

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

Summary of Findings:

Total this audit                   1

Total last audit                   2

Repeated from last audit    0

Release Date:

April 10, 2008

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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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 and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

·        The Commission had inadequate segregation of duties in the areas of expenditure control and State property.

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

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

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

$641,018

$526,804

$548,273

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

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

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

$368,859

57.6%

7

$314,208

59.6%

6

$344,766

62.9%

7

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

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

$69,836

10.9%

$47,776

9.1%

$77,164

14.1%

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

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

$84,850

13.2%

$60,743

11.5%

$41,858

7.6%

         Lump Sums……………………………….

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

$29,774

4.6%

$49,477

9.4%

$24,893

4.5%

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

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

$87,699

13.7%

$54,600

10.4%

$59,592

10.9%

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

$212,656

$215,559

$215,748

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2007

FY 2006

FY 2005

Public inquiries addressed

Materials distributed

Promotional items distributed

Library materials loaned

Newsletter subscribers

Workshops presented

12,500

10,500

13,500

350

0*

67

12,000

10,000

14,000

300

2,000

60

13,200

11,000

13,000

420

10,000

75

*The Commission no longer produces newsletters.

AGENCY DIRECTOR

     During Examination Period:  John Miller, Director

     Currently:  John Miller, Director

Inadequate segregation of authorization, custody, and record keeping duties

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

The Deaf and Hard of Hearing Commission (Commission) had inadequate segregation of duties in the areas of expenditure control and State property.  During testing we noted the following:

·        One person had authority to perform procurement functions, prepare and approve vouchers, initiate correction of errors, maintain accounting records and perform monthly expenditure reconciliations.

·        One person had authority to approve property purchases, tag inventory, maintain the property records, perform the annual physical inventory and complete the quarterly reports of State property.

·        One person had the authority to prepare payroll, make adjustments to payroll, and approve payroll.

Commission personnel stated the inadequate segregation of duties was due to the limited number of staff.  (Finding 1, page 9)

We recommended the Commission allocate sufficient personnel in order to maintain effective internal control over the authorization, custody, and record keeping and accounting duties concerned with expenditure and property control.

Commission personnel accepted the finding and stated they will review agency personnel access to systems and make necessary changes to reflect proper controls.

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.