REPORT DIGEST EXECUTIVE ETHICS COMMISSION COMPLIANCE ATTESTATION EXAMINATION For the Year Ended: June 30, 2013 Release Date: May 15, 2014 Summary of Findings: Total this audit: 2 Total last audit: 2 Repeated from last audit: 1 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 TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov SYNOPSIS • Required contract information was not posted to the awarding agency’s website. • The Chief Procurement Officers for General Services, Higher Education, and the Capital Development Board failed to ensure emergency procurement procedures were properly administered as required. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS CONTRACT INFORMATION NOT POSTED ELECTRONICALLY The General Services Chief Procurement Officer (CPO), under jurisdiction of the Executive Ethics Commission (Commission), failed to ensure that contract information was posted electronically as required by the Illinois Procurement Code (Code). We noted the notice of the awarded contract was not posted on the awarding agency’s website for 18 of 40 (45%) contracts tested, totaling $46,824,624. (Finding 1, page 9) We recommended the General Services CPO implement procedures to ensure procurement procedures are properly administered for all contracts awarded. The General Services CPO agreed with our recommendation but noted he does not control agency websites. FAILURE TO ENSURE EMERGENCY PROCUREMENT PROCEDURES WERE PROPERLY ADMINISTERED The Chief Procurement Officers (CPOs), under jurisdiction of the Commission, failed to ensure emergency procurement procedures were properly administered as required by the Code. Some of the conditions we noted follow: • Affidavits for 12 of 40 (30%) emergency procurements tested, totaling $1,446,199, were filed 1 to 79 days late with the Office of the Auditor General. • Affidavits for 3 of 40 (8%) emergency procurements tested, totaling $237,243, were not filed timely with the Procurement Policy Board, and the related notices were not published to the online electronic Bulletin timely. The affidavits in these instances were filed 3 to 51 days late, and the notices in these instances were published 4 to 41 days late. • Affidavits for 3 of 40 (8%) emergency procurements tested, totaling $1,538,672, were not filed with the Office of the Auditor General at all. (Finding 2, pages 10-12) This finding was first reported in 2011. We recommended the CPOs implement procedures to ensure the emergency procurement process is properly administered in accordance with the Code. The CPOs accepted our recommendation and reported they have taken corrective action. (For the previous Commission response, see Digest Footnote #1.) AUDITORS’ OPINION We conducted a compliance examination of the Executive Ethics Commission as required by the Illinois State Auditing Act. The Executive Ethics Commission has no funds that require an audit leading to an opinion on financial statements. WILLIAM G. HOLLAND Auditor General WGH:cmd AUDITORS ASSIGNED The compliance examination was performed by the Office of the Auditor General’s staff. DIGEST FOOTNOTES #1 – INADEQUATE ADMINISTRATION OF EMERGENCY PROCUREMENT This finding relates to a function and responsibility solely within the control of the Chief Procurement Officers (CPOs) and the Commission refers this finding to them for their responses. Each CPO agrees that the Procurement Code should be interpreted as consistently as possible among the four offices. Although the Code should be interpreted consistently by each office, internal processing steps may differ to reflect the specific organizational structure and capabilities of each office and constituent agency. The CPOs do have the same basic understanding for determining the award date for emergency procurements. We agree that the earlier of the date the vendor was told to perform or the date of the contract sets the date. These dates are easy to understand and easy to determine. Policies do or will be modified to better reflect use of these dates to start the counts for publication of notices and submission of affidavits. Given the number of agencies and the potential for emergency situations we have not contemplated, awards may be made at times other than called for under the standard practice. In those cases the award date would need to be specially documented and that date used to start the clock for publication and other compliance actions. CPO of General Services Response: The CPO of General Services has implemented procedures to ensure the emergency procurement process is administered in accordance with the Illinois Procurement Code. Procedures include the adoption of administrative rules which provide guidance to State Purchasing Officers and state agencies and adoption of a State Purchasing Officer Determination Form to evidence the determination of the contract award. CPO of Higher Education Response: The CPO of Higher Education issued a procedure in April 2013 to address better issues that had been brought to our attention. We will make revisions as needed to address issues as they arise. CPO of Capital Development Board Response: The role of the CPO of the Capital Development Board in emergency procurement had previously included both the DCPO and SPO. The CPO office has implemented new procedures to centralize the process under the SPO to prevent a recurrence of this circumstance.