REPORT DIGEST

ILLINOIS EDUCATIONAL LABOR RELATIONS BOARD

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

Summary of Findings:

Total this audit 2

Total last audit 4

Repeated from last audit 1

Release Date:

February 7, 2008

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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SYNOPSIS

¨ The Board did not timely hold fair share hearings or make fair share payments.

¨ The Board did not maintain adequate segregation of duties.

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

ILLINOIS EDUCATIONAL LABOR RELATIONS BOARD

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2007

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

Total Expenditures (All Appropriated Funds)....

$1,198,782

$1,314,454

$1,231,435

OPERATIONS TOTAL..................................

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

$1,198,782

100%

$1,314,454

100%

$1,231,435

100%

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

% of Operations Expenditures...........

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

$844,765
70.5%

$925,519

70.4%

$896,430
72.8%

Other Payroll Costs (FICA, Retirement)..

% of Operations Expenditures...........

$158,410

13.2%

$139,792

10.7%

$209,534

17.0%

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

% of Operations Expenditures...........

$144,139

12.0%

$167,299

12.7%

$61,328

5.0%

Electronic Data Processing.....................

% of Operations Expenditures...............

$3,510

0.3%

$26,596

2.0%

$4,451

0.4%

Travel....................................................

% of Operations Expenditures...............

$13,019

1.1%

$18,719

1.4%

$14,938

1.2%

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

% of Operations Expenditures...........

$34,939

2.9%

$36,529

2.8%

$44,754

3.6%

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

$466,158

$464,587

$435,743

SELECTED ACTIVITY MEASURES (Not Examined)	FY 2007	FY 2006	FY 2005
Representation Cases Filed...................................	113	118	133
Unfair Labor Practice Cases Filed........................	295	346	357

AGENCY DIRECTOR(S)

During Audit Period: Victor Blackwell

Currently: Victor Blackwell

Three of 6 (50%) consolidated cases reviewed had hearings held 71 to 169 days after the last day for filing an objection

Ten of 10 (100%) vouchers tested involving 376 individual cases finalized by the Board were processed from 97 to 1,074 days after the Final Order was issued, and no documentation was maintained to substantiate the delays

Inadequate segregation of duties in the areas of procurement, expenditure control and State property

INTRODUCTION

The Illinois Educational Labor Relations Board was created on January 1, 1984 to administer the Illinois Education Labor Relations Act (115 ILCS 5/1 et seq.). The Board consists of a chairman and four members appointed by the Governor with the advice and consent of the Senate. The Board has jurisdiction over collective bargaining matters between educational employees and public school educational employers. The Board’s primary responsibilities under the Act are to process representation petitions including conducting elections, to process unfair labor practice charges, and to process mediation/arbitration requests.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

UNTIMELY PROCESSING OF FAIR SHARE CASES AND PAYMENTS

The Board did not timely hold fair share hearings or make fair share payments. We noted the following:

· Three of 6 (50%) consolidated cases reviewed had hearings held 71 to 169 days after the last day for filing an objection. The Illinois Educational Labor Relations Board Rules and Regulations (80 Ill. Adm. Code 1125.80) states that the hearing shall commence no later than 60 days after an objection is filed. Three of 6 (50%) consolidated cases reviewed have had final orders issued yet no payments have been made. As of June 30, 2007, these cases had not been paid for 228 to 536 days after the final order was issued.

· Ten of 10 (100%) vouchers tested involving 376 individual cases finalized by the Board were not processed for payment in a timely manner. The decisions included fair share disbursements of approximately $119,536, which includes accrued interest. The vouchers were processed from 97 to 1,074 days after the Final Order or withdrawal request approval was issued, and no documentation was maintained to substantiate the delays. (Finding 1, pages 9-10)

We recommended the Board hold hearings in accordance with their rules and regulations. We further recommend that the Board implement controls to expedite fair share payments. In addition, efforts to coordinate necessary information from outside parties should be documented to justify any delays.

Board personnel concurred with the finding and stated that the Board planned to meet with responsible staff and implement appropriate controls to remedy potential hearing delays.

INADEQUATE SEGREGATION OF DUTIES

The Board had inadequate segregation of duties in the areas of procurement, expenditure control and State property. We noted the following inadequate segregation of duties as of January 2007:

· One person had authority to perform procurement functions including the approval of contracts, prepare and approve vouchers, maintain accounting records and perform monthly expenditure reconciliations.

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

· One person had the authority to prepare payroll, make adjustments to payroll, approve payroll and distribute payroll stubs. (Finding 2, page 11)

We recommended the Board maintain an effective internal control over the record keeping and accounting duties concerned with procurement, expenditure and property control.

Board personnel concurred with the finding and stated that the Board is pursuing personnel actions to fill the position responsible for reviewing and countersigning fiscal documents.

AUDITORS’ OPINION

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

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

AUDITORS ASSIGNED

The examination was conducted by staff of the Office of the Auditor General.