REPORT DIGEST

STATE BOARD OF ELECTIONS

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
April 29, 1998

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Board continues to have problems in maintaining its property and equipment records. This condition has existed since 1987.
  
  
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• Total Expenditures (All Funds)

OPERATIONS TOTAL
% of Total Expenditures
Personal Services
% of Operations Expenditures
Average No. of Employees
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures
Contractual Services
% of Operations Expenditures
All Other Operations Items
% of Operations Expenditures

GRANTS TOTAL
% of Total Expenditures

• Cost of Property and Equipment

$5,263,214

$3,923,865
75%
$2,435,896
62%
57
$393,481
10%
$454,089
12%
$640,399
16%

$1,339,349
25%

$1,657,718

$5,868,035

$4,622,712
79%
$2,350,827
51%
58
$377,393
8%
$509,115
11%
$1,385,377
30%

$1,245,323
21%

$1,628,104

$4,854,552

$3,325,694
69%
$2,212,375
67%
58
$339,704
9%
$518,632
16%
$254,913
8%

$1,528,858
31%

$1,396,276

NOVEMBER 1996 GENERAL

MARCH 1996
PRIMARY

407


62
17
*47
533

Objections*
60 filed
5 overruled
8 withdrawn
*47 sustained

836
403
*74
245
407
1,965






Objections*
186 filed
50 overruled
62 withdrawn
*74 sustained

During Audit Period: Dr. Ronald D. Michaelson
Currently: Dr. Ronald Michaelson

 

Problems in controlling property and equipment

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

DEFICIENCIES IN EQUIPMENT RECORDS

Property records do not include an accurate dollar accounting of equipment at the Board. We selected a sample of items from the Agency's records and could not physically locate all of the items at the Agency. During our testing we noted several obsolete items. We also tested items physically located at the Agency and attempted to trace these items to the Agency's property records. The property records have not been updated or submitted to the Department of Central Management Services in several years so this could not be done. Most of the EDP equipment has been purchased in the last five years, and it has not been identified with a property tag or added to the property records. All items of an equipment nature with a value of $500 or more and all firearms, cameras, calculators, antiques and other items subject to theft (regardless of cost) must be placed on a special inventory listing with the Department of Central Management Services. At June 30, 1997, the Board reported a property and equipment balance of $1,657,718. (Finding 1, page 8) This finding has been repeated since 1987.

We recommended the Board perform a complete inventory of equipment at least annually and maintain a perpetual dollar record of equipment transactions.

The Board responded it agrees with the finding and is working towards accomplishing this task. The Board states it has three times unsuccessfully requested funds during the last six years to accomplish this goal. The FY 99 budget contains a new request for these funds in order to assist in the completion of an inventory. In the meantime, the Board has identified a number of items to be surplused which are scheduled to be removed in February, 1998 as a part of the ongoing inventory process. (For the previous agency responses, see Digest Footnote 1.)

The Board's response was provided by Executive Director, Mr. Ronald D. Michaelson.

______________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMM:pp

SPECIAL ASSISTANT AUDITORS

Clifton Gunderson, L.L.C. were our Special Assistant Auditors.

DIGEST FOOTNOTE

#1 DEFICIENCIES IN EQUIPMENT RECORDS - Previous Agency Responses

1995: "The Board acknowledges this finding and has assigned a high priority to accomplish this task with the limited amount of available manpower. To this end the Board, during the last four years, has twice requested a modest appropriation for contractual assistance in order to expedite this project. However, each time this request was denied by the General Assembly. The Board now feels that sufficient resources should be available to direct toward the inventory issue. This is because resources were expended to eliminate three of the four previous audit findings and, in the process, no new findings of significance were reported. Thus, the Board is now confident that the inventory finding can indeed be adequately addressed during the next audit period."

1993: "The Board acknowledges the finding and will assign a high priority to accomplishing this task. It is noted, however, that substantial staff layoffs experienced during the audit period have made and will continue to make it difficult to perform such responsibilities on a timely basis."

1991: "The Board is in basic agreement with this finding. Although all parties agree that we have made some progress in this area, we recognize that deficiencies still exist and thus our #1 priority is to remedy this situation promptly. We have just completed placing inventory records on our computer system and this should be an excellent framework on which to conduct a thorough and comprehensive annual inventory."

1989: "All deficiencies have been or are in the process of being remedied with the application of our property management system. This new data processing program will meet all requirements of the State Property Control Act. An annual inventory of all equipment is now being conducted, and this should assure that all State property and equipment will be properly recorded and monitored."

1987: "We concur with this finding."