REPORT DIGEST
ILLINOIS EMERGENCY MANAGEMENT AGENCY
COMPLIANCE AUDIT For the Two Years Ended: June 30, 2003
Summary of Findings:
Total this audit 3 Total last audit 1 Repeated from last audit 1
Release Date: April 27, 2004
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 TDD (217) 524-4646
This Report Digest is also available on the worldwide web at http://www.state.il.us/auditor |
SYNOPSIS
{Expenditures and Activity Measures are summarized on the next page.} |
ILLINOIS EMERGENCY MANAGEMENT AGENCY
COMPLIANCE AUDIT
For the Two Years Ended June 30, 2003
EXPENDITURE STATISTICS |
FY 2003 |
FY 2002 |
FY 2001 |
! Total Expenditures (All Funds) |
$35,830,323 |
$22,922,235 |
$36,561,377 |
OPERATIONS TOTAL % of Total Expenditures |
$23,027,470 64.3% |
$12,272,180 53.6% |
$9,023,713 24.7% |
Personal Services % of Operations Expenditures Average No. of Full-time Employees |
$3,029,025 13.2% 66 |
$3,076,559 25.1% 70 |
$3,043,595 33.7% 72 |
Other Payroll Costs (FICA, Retirement) % of Operations Expenditures |
$643,744 2.8% |
$721,975 5.9% |
$704,803 7.8% |
Contractual Services % of Operations Expenditures |
$389,643 1.7% |
$397,541 3.2% |
$356,001 4.0% |
All Other Operations Items % of Operations Expenditures |
$18,965,058 82.3% |
$8,076,105 65.8% |
$4,919,314 54.5% |
AWARDS AND GRANTS TOTAL % of Total Expenditures |
$12,627,608 35.2% |
$10,505,647 45.8% |
$25,519,721 69.8% |
NON-APPROPRIATED FUNDS % of Total Expenditures |
$175,245 .5% |
$144,408 .6% |
$2,017,943 5.5% |
! Cost of Property and Equipment |
$3,103,000 |
$3,041,000 |
$3,075,000 |
SELECTED ACTIVITY MEASURES |
FY 2003** |
FY 2002* |
FY 2001 |
• Railroad Incidents (derailments, accidents, etc.) |
250 |
250 |
111 |
• Acquisitions (real property) |
30 |
55 |
57 |
• Public Assistance Grants to Local Government |
500 |
500 |
1,313 |
* Estimated** Projected |
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AGENCY DIRECTOR |
During Audit Period: Michael Chamness (7/1/01 to 3/19/03) William C. Burke (3/20/03 to current) Currently: William C. Burke |
Evaluations were 8 days to seven months late
At least $291,275 of fixed assets were not recorded on property records timely
Incorrect financial information submitted to the Office of the Comptroller
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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NEED TO COMPLETE EMPLOYEE PERFORMANCE EVALUATIONS ON A TIMELY BASIS The Agency did not perform employee performance evaluations on a timely basis. During our testing, we noted 7 of 25 (28%) employee performance evaluations were performed 8 days to seven months late. The Agency is required by the Illinois Administrative Code to perform an employee evaluation not less than annually. (Finding Code 1, page 9) This finding has been repeated since 1997. We recommended the Agency comply with the Illinois Administrative Code and ensure all evaluations are completed annually. (For previous Agency responses see Digest Footnote 1.) Agency officials concurred stating that management will employ procedures to complete evaluations timely.
INACCURATE REPORTING OF FIXED ASSETS The Agency did not maintain accurate property control records and filed inaccurate Quarterly Fixed Asset Reports with the Office of the State Comptroller. The Agency was unable to accurately determine their fixed asset inventory at June 30, 2003. Assets that were purchased during fiscal year 2003 by the Agency were not entered in the inventory system until after June 30, 2003. During our testing, we were able to verify that at least $291,275 of fixed assets should have been reported on the Agency’s inventory system but were not. The Agency is required by the State Property Control Act to maintain a permanent record of all property. (Finding Code 3, pages 12 and 13) We recommend the Agency assign personnel to enter fixed asset transactions in a timely manner and review the information reported to the Office of the State Comptroller for reasonableness and accuracy. Agency officials concurred stating all fixed assets are accounted for and entered into the Agency’s inventory records, and procedures have been implemented to ensure accurate accounting of fixed assets in the future.
NEED TO IMPROVE FINANCIAL REPORTING The Agency did not correctly report financial information to the Office of the State Comptroller. During our audit we noted:
We recommended the Agency comply with the Comptroller’s Statewide Accounting Management System Procedures Manual (SAMS Manual) to ensure accurate financial information is submitted to the Office of the State Comptroller. Also, the Agency should review and revise as necessary its current system used to gather and document the financial information that will be reported in the Office of the State Comptroller generally accepted accounting principles (GAAP) Reporting Package forms. Further, the Agency should seek to obtain appropriate training in the preparation of GAAP Reporting Package forms. Agency officials agreed with our recommendations.
AUDITORS’ OPINION We conducted a compliance audit of the Agency as required by the Illinois State Auditing Act. We have not audited any financial statements of the Agency 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:TLD:pp
SPECIAL ASSISTANT AUDITORS BKD, LLP were our special assistant auditors for this audit.
DIGEST FOOTNOTE #1 NEED FOR EMPLOYEE PERFORMANCE EVALUATIONS TO BE PERFORMED TIMELY – PREVIOUS AGENCY RESPONSES 2001: We agree. Agency management recognizes the importance of completing the evaluations and will strive to ensure that the evaluations are completed timely. 1999: We concur. Toward the end of the audit period, Agency management implemented new policies and procedures designed to ensure employee evaluations are conducted in a timely manner. 1997: We agree. All evaluations will be completed on a timely basis. The Personnel Officer will develop a procedure to insure that managers complete evaluations timely. |