|
REPORT DIGEST DEPARTMENT OF VETERANS’ AFFAIRS – CENTRAL
OFFICE COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this report 16 Total last report 8 Release Date: June 25, 2009
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the
Report contact: Office of the Auditor
General (217) 782-6046 or TTY (888)
261-2887 This Report Digest is also
available on the worldwide web at http://www.auditor.illinois.gov
|
SYNOPSIS · The Department did not maintain adequate internal controls over travel.
{Expenditures and Activity Measures are summarized on the reverse page.} |
DEPARTMENT OF VETERANS’ AFFAIRS
COMPLIANCE EXAMINATION
For The Two Years Ended June 30, 2008
|
EXPENDITURE STATISTICS |
FY
2008 |
FY
2007 |
FY
2006 |
|
Total Expenditures (All Funds)........... |
$14,397,061 |
$12,989,913 |
$10,292,714 |
|
OPERATIONS TOTAL.................... % of Total Expenditures.............. Personal Services........................ % of Operations Expenditures...... Average No. of Employees........... |
$10,203,207
71%
$5,528,719
54%
115 |
$9,403,560
72%
$5,807,756
62%
115 |
$7,658,195
74% $4,927,548
64% 106 |
|
Other Payroll Costs (FICA, Retirement) % of Operations Expenditures...... |
$1,414,832
14% |
$1,180,471
13% |
$866,834 11% |
|
Contractual Services.................... % of Operations Expenditures..... |
$703,598
7% |
$682,107
7% |
$744,969 10% |
|
All Other Items......................... % of Operations Expenditures.... |
$2,556,058 25% |
$1,733,226
18% |
$1,118,844 15% |
|
GRANTS TOTAL......................... % of Total Expenditures........ |
$4,193,854
29% |
$3,586,353
28% |
$2,634,519
26% |
|
Cost of Property and Equipment..... |
$1,629,422 |
$1,475,748 |
$1,595,737 |
|
SERVICE EFFORTS AND
ACCOMPLISHMENTS (NOT EXAMINED) |
FY
2008 |
FY
2007 |
FY
2006 |
|
|
Field Services Number of Permanent full-time offices....... Number of part-time itinerant offices…… Grants Number of claims processed................... |
50 41 4,973 |
50 39 6,346 |
49 35 7,278 |
|
|
|
|
|
|
|
|
AGENCY DIRECTOR |
|||
|
During Examination Period: Mr. Roy Dolgos (7-1-06 – 12-14-06), Ms. Tammy Duckworth (12/15/06 – 2/6/09) |
|||
|
Currently: Mr. Dan Grant (eff. 2-9-09) |
|||
|
Excess rates claimed for lodging Travel vouchers did not state in specific terms the purpose of travel
Mileage claimed was greater than mileage for
the usual route
Plane tickets were reimbursed without proper documentation Employees’ time sheets did not agree to CTAS Employees’ EET/overtime worked on their time sheet did not agree to the EET/overtime request Employees’ time sheets did not agree to the leave requests Employees’ leave requests were not submitted and/or approved timely
Annual reviews not conducted Task force not established Method to assist eligible members or
veterans not established Department personnel disagreed with the
finding Auditors’ Comment Statistical reports did not accurately trace to the underlying reports
Statistical reports were not mathematically correct The Department was unable to provide reports
Hours of operation stated by VSO varied from hours listed on the Department’s website Division field office supervisors’ itineraries did not match the supervisor sign-in records
Failure to enforce grant agreements’
requirements Grantees failure to report or timely report Failure to report information to the State
Comptroller The Department did not report a
pass-through grant of $4,383,464
Auditors’ Comment |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS INADEQUATE INTERNAL CONTROLS OVER TRAVEL The Department did not exercise adequate control over its travel expenditures. We noted the following weaknesses: · One of 25 (4%) travel vouchers tested, totaling $976, was paid to a vendor at rates in excess of State travel allowances. We noted 4 instances of reimbursement for lodging rates claimed in excess of rates set forth by the Governor’s Travel Control Board. Excess rates claimed for lodging totaled $616. · Three of 25 (12%) travel vouchers tested, totaling $2,216 did not state in specific terms the purpose of travel and the auditors could not determine if travel was required by the official State duties of the employee. · One of 25 (4%) travel vouchers tested claimed mileage in amounts greater than the usual route. The traveler did not explain or separately detail the reasons for the excess mileage. Mileage claimed was greater than mileage for the usual route by 17 to 44 miles, resulting in payments of $196. · One of 25 (4%) travel vouchers tested was not supported by proper documentation. Plane tickets in the amount of $956 were reimbursed without proper documentation to support the expense. (Finding 1, page 11-12) We recommended the Department strengthen its internal controls over travel to ensure reimbursements are in accordance with the Governors Travel Control Board and Travel Regulation Council rules and travel vouchers are properly supported. Further, the Department should obtain reimbursements for overpayments. Department officials agreed with the finding. Department officials stated they will provide refresher training on travel processes and Governor’s Travel Control Board rules. The Department will provide a copy of the Governor’s Travel Control Board and Department travel policies to staff. INADEQUATE CONTROLS OVER EMPLOYEE ATTENDANCE The Department
did not exercise adequate controls over employee
attendance. Some of the problems noted
in our tests of 41 employees
follow:
·
Twenty-one
(51%) employees’ time sheets did not agree to Central Time and Attendance
System (CTAS) reports. We noted 41 discrepancies between time sheets and CTAS
reports.
·
Three (7%)
employees’ EET/overtime worked on their time sheet did not agree to the
EET/overtime request totaling approximately 10 hours.
·
Nine (22%)
employees’ time sheets did not agree to the leave requests. We noted ten
discrepancies between time sheets and leave request forms. Five instances
were noted where the type of time taken on the employees’ time sheet did not
agree to the type of time taken on the leave request totaling approximately
21 hours. Seven instances were noted
where the number of hours taken for leave on the leave request did not agree
to the number of hours taken on the employees’ time sheet or vice versa.
·
Fifteen (37%)
employees’ leave requests were not submitted and/or approved timely.
Thirty-three instances were noted where the date approved was from 3 to 215
days after the date the leave occurred. Seventeen instances were noted where
the date the request was signed by the employee was from 3 to 195 days after
the time off occurred. (Finding
2, page 13-15) We recommended the Department implement
controls to ensure employees complete leave requests for time off, accurately
complete the time sheets and agree those records to CTAS to ensure accrued
absence balances are accurate. Department officials agreed with the finding and stated the Department will provide training on attendance records as well as ensure attendance records are reconciled to CTAS. FAILURE TO CONDUCT ANNUAL REVIEW OF
BENEFITS RECEIVED BY The Department did
not comply with the Department of Veterans Affairs Act regarding an annual
review of the benefits received by The Department was unable to provide documentation that
they conducted annual reviews of benefits received by We recommended the Department of Veterans’ Affairs conduct
an annual review of the benefits received by Illinois veterans that compares
benefits received by Illinois veterans with the benefits received by veterans
in all other states and U.S. territories or seek legislative remedy. Department officials agreed with the finding and stated they are reviewing the legislation to determine what type of report will provide value and address the legislative intent of this requirement. NONCOMPLIANCE WITH
THE NATIONAL GUARD VETERANS EXPOSURE TO HAZARDOUS MATERIALS ACT The Department of Veterans’ Affairs (Department) did not comply with the National Guard Veterans Exposure to Hazardous Materials Act (Act). We noted the following deficiencies:
·
A task
force was not established within the Department to study the possible health
effects of the exposure to hazardous materials or to submit a report to the
General Assembly. The Act also states that the task force shall terminate on
the date that it submits the report or on January 31, 2008, whichever is
earlier.
·
The Department had not established a method to
assist eligible members or veterans in obtaining information on available
federal treatment services for exposure to depleted uranium. (Finding 7, page 23 – 25) We
recommended the Department of Veterans’ Affairs implement controls to ensure
statutory requirements are complied with in a timely manner. Further, the Department should ensure a task
force is established with the Department and ensure all duties of the task
force are carried out in accordance with the National Guard Veterans Exposure
to Hazardous Materials Act. Lastly,
the Department should establish a method to timely assist eligible members or
veterans in obtaining information on available federal treatment services for
exposure to depleted uranium. Department personnel disagreed with the finding. The Department stated that neither the Department nor the Director were given the power or authority by this Act to establish a task force, to study the possible health effects of the exposure to hazardous materials or to submit a report to anybody of the State government. Department personnel further stated that although the Department did not establish new methods to assist in obtaining this specific information, the auditors failed to examine the Department’s current methods to assist members or veterans in obtaining information on all available federal treatment services, which would have shown that the established protocols meet any new requirements created by this Act. The Department never provided the auditors with any information about the Department’s current method to assist members or veterans in obtaining information on all available federal treatment services, including, as specifically required by law, “a best practice health screening test for exposure to depleted uranium using a bioassay procedure involving sensitive methods capable of detecting depleted uranium at low levels and the use of the equipment with the capacity to discriminate between different radioisotopes in naturally occurring levels of uranium and the characteristic ratio and marker for depleted uranium.” When asked about compliance with the Act, the Department merely gave the auditors a memo stating that the task force terminated on January 31, 2008 and the legislation expired before any of the named entities made the appropriate appointments. Further, the Department provided no documentation or communication showing that it attempted to have the appointments to the task force made by the appropriate entities. THE DEPARTMENT INACCURATELY COMPILED AND
REPORTED THE ACTIVITIES OF ITS VETERANS’ SERVICE OFFICERS The Department inaccurately compiled and reported the activities of its Veterans’ Service Officers. We tested 10 of 49 (20%) full-time field offices operated by the Department. We noted the following:
·
Six of 89
(7%) weekly statistical reports did not accurately trace to the underlying
daily interview records.
·
Two of 89
(2%) monthly statistical reports did not accurately trace to the underlying
weekly statistical reports.
·
Four of 89
(4%) monthly statistical reports were not mathematically correct.
·
One of 89
(1%) weekly statistical reports was not mathematically correct.
·
Five of 89
(6%) monthly statistical reports were not signed by the Veterans’ Service
Officer. · Twenty-six of 89 (29%) weekly statistical reports were not signed by the Veterans’ Service Officer. · Four of 89 (4%) months tested contained between one and twelve reports which the Department was unable to provide. In addition, we selected 7 of 32 (22%) itinerant offices with telephones to inquire anonymously about hours of operation with the Veterans’ Service Officers (VSO). We then compared the hours stated by the VSO with the hours listed on the Department’s website. Three of 7 (43%) itinerant offices stated hours of operation which varied from the hours listed on the Department’s website. Additionally, one of 7 (14%) itinerant offices did not have a valid phone number listed on the Department’s website. Furthermore, we reviewed four consecutive weekly itineraries as submitted by the North, Central, and South division field office supervisors. We noted the itineraries did not match the supervisor sign-in records for 4 of 37 (11%) visits tested. (Finding 8, page 26-28) We recommended the Department establish appropriate internal controls and enforce procedures to ensure employees maintain accurate and complete records. Department officials agreed with the finding and stated the Department will review internal policies and procedures for Veterans’ Service Officers reporting and implement internal controls to ensure accurate and complete records are maintained. INADEQUATE CONTROLS OVER GRANT AGREEMENTS The Department did not enforce compliance with its grant agreements’ requirements regarding timely submission of required reports. As a result, the Department’s ability to monitor State grants was negatively impacted. The Department awarded Veterans’ Assistance grants totaling $1,852,377 and $1,408,204 in FY07 and FY08, respectively. We noted seven of 15 (47%) grants tested totaling $661,000, where the grantees did not submit or timely submit a semi-annual report. One of 15 (7%) grantees did not submit the semi-annual report. Six of 15 (40%) grantees submitted the semi-annual report between 57 and 186 days late. (Finding 13, page 35-36) We recommended the Department adequately monitor its grants to ensure all required reports are received from the grantee. We further recommended the Department adequately document its monitoring efforts. Department officials agreed with the finding and stated they will rewrite the grant agreement and provide a standard reporting format for grantees. In addition, the Department is working on Administrative Rules for the Veterans Cash Grant Program. This will assist the Department to adequately monitor the Veterans Cash Grant reports. The Department has developed a Veterans Cash Grant database to assist with monitoring of the grant program and grant reporting. The Department will enhance the database program to provide improved documentation of grant monitoring.
NEED TO IMPROVE FINANCIAL REPORTING The Illinois Department of Veterans’ Affairs (Department) did not report certain financial information to the Office of the Comptroller through the financial reporting process. During FY08 the Department received a
pass-through grant with the Capital Development Board of $4,383,464 for
expenditures incurred for the construction improvements to the Department’s
LaSalle Veterans’ Home in accordance with the State Homes Construction
Program. However, the Department failed to report this amount from the
federal government in its FY08 Generally Accepted Accounting Principles
(GAAP) package for the General Revenue (001) Fund. (Finding 16, page 42-43) We recommended the Department report all financial information to the Office of the Comptroller through the GAAP reporting process. Department officials agreed with the finding and stated the Department did report the pass-through State Homes Construction grant on the SCO-568 form. Completion of the SCO-563 was inadvertently omitted in the FY08 GAAP package as this was a late addition to the GAAP package. This omission also was not found in the Comptroller’s review of the Department GAAP package. The Department will complete the SCO-563 form in future GAAP packages for State Homes Construction pass-through grants. The
Department did not inform the auditors of the State Homes Construction grant.
The grant was identified through the Statewide Single Audit. When the
Department was questioned about the grant, the auditors were told the grant
was the responsibility of the Capital Development Board. The auditors were
later provided a copy of the SCO-568 GAAP form that was generated by the
Comptroller’s Office. OTHER FINDINGS The
remaining findings pertain to 1) Annual report not timely completed,
2) Failure to establish the Veterans’ Conservation Corps, 3) Failure to fully
establish the Veterans’ Memorial Commission, 4) Performance evaluations not
timely completed, 5) Inadequate controls over employee overtime, 6)
Inadequate controls over State vehicles, 7) Lack of current Disaster
Contingency Planning or Testing to Ensure Recovery of Computer Systems, 8)
Inadequate controls over voucher processing and 9) Inadequate controls over
equipment. We will follow up on these findings during our next examination of
the Department. AUDITORS’ OPINION We conducted a compliance examination of the Department as required by the Illinois State Auditing Act. We have not audited any financial statements of the Department for the purpose of expressing an opinion because the Department does not, nor is it required to, prepare financial statements. ___________________________________ WILLIAM
G. HOLLAND, Auditor General WGH: GSR:pp ASSIGNED AUDITORS The Auditor General’s staff performed this compliance examination. |