REPORT DIGEST OFFICE OF THE STATE FIRE MARSHAL FINANCIAL AND COMPLIANCE AUDIT For the Two Years Ended: Summary of Findings: Total this audit 4 Release Date:
State of Illinois WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the Report contact: (217)782-6046 or TDD (217) 524-4646 This Report Digest is also available on |
SYNOPSIS
{Expenditures and Activity Measures are summarized on the next page.} |
OFFICE OF THE STATE FIRE MARSHAL
FINANCIAL COMPLIANCE AUDIT
For The Two Years Ended June 30, 2000
| EXPENDITURE STATISTICS | FY 2000 |
FY 1999 |
FY 1998 |
$23,502,068 |
$14,803,152 |
$12,033,371 |
|
OPERATIONS TOTAL % of Total Expenditures |
$11,964,163 50.91% |
$11,708,572 79.10% |
$10,129,666 84.2% |
Personal Services |
$6,644,023 |
$6,281,180 |
$6,087,682 |
Other Payroll Costs (FICA, Retirement) |
$2,221,081 18.6% |
$2,024,462 17.3% |
$1,768,045 17.5% |
Contractual Services |
$757,486 |
$756,689 |
$718,964 |
All Other Operations Items |
$2,341,573 |
$2,646,241 |
$1,554,975 |
AWARDS, GRANTS AND REFUNDS TOTAL % of Total Expenditures |
49.09% |
20.90% |
15.8% |
$3,202,092 |
$3,133,497 |
$2,941,398 |
* Includes expenditures of $8,871,900 for Illinois First Programs.
| SELECTED ACTIVITY MEASURES | FY 2000 |
FY 1999 |
FY 1998 |
| Statewide Arson Investigations Boiler and Pressure Vessel Safety Inspections (By State Inspectors) Fire Prevention Inspections |
988 (19,563) 17,547 17,153 |
830 (19,416) 20,400 17,276 |
1,018 (17,996) 26,030 15,308 |
| AGENCY DIRECTOR(S) | |||
During Audit Period: Thomas L. Armstead |
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Delinquent accounts are not regularly rebilled or referred to other entities for collection
Not all systems were tested |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE COLLECTION AND MONITORING OF DELINQUENT ACCOUNTS RECEIVABLE The Office of the State Fire Marshal (Agency) did not sufficiently monitor and pursue collections on delinquent accounts receivable. The Underground Storage Tank Division successfully petitioned the Debt Collection Board to write-off $510,000 of old receivables effective June 29, 2000. The accounts receivable collection procedures were not adequate to ensure proper collection of fees due both the Underground Storage Tank Division and the Division of Boiler and Pressure Vessel Safety. After an initial invoice and a second notice sent 60-90 days later, there were no formal procedures to pursue collection. In addition, delinquent accounts were not referred to the Comptroller’s Offset system or outside collection agencies for collection. By not administering proper procedures the Agency increases the likelihood that all monies owed for inspections will not be collected and in the future will have to be written-off. (Finding 00-1, pages 13 - 14) The collection portion of this finding has been repeated since 1990. We recommended the agency send regular billings for all accounts, refer delinquent accounts to the Comptroller’s Offset System and outside collection agencies as appropriate and pursue other collection methods. By monitoring the listings of accounts receivable monthly the agency will be better able to administer proper collection procedures which should eliminate the need for additional write off of receivables in the future. The Office of the State Fire Marshal accepted the finding and stated that both divisions have designated an individual to review accounts receivable on a monthly basis. (For previous agency responses see Digest Footnote #1.) DISASTER CONTINGENCY PLAN WEAKNESSES The Agency had not fully tested its Disaster Contingency Plan for recovering its local area networks. A variety of applications are maintained on these systems which contain crucial, financially sensitive, or confidential data including:
Management oversight was the cause that not all systems were tested. (Finding 00-4, page 17). This finding has been repeated since 1996. We recommended the Agency perform a comprehensive test of its Disaster Recovery Plan and the plan be adequately documented. We further recommended the plan should be continuously modified to eliminate any weaknesses identified during testing. The Agency accepted the finding and stated it will implement the recommendation. (For previous agency responses see Digest Footnote #2.) OTHER FINDINGS The remaining findings were less significant and are being given attention by the Agency. We will review progress toward implementing all recommendations in our next audit. AUDITOR’S OPINION Our auditors state the financial statements as of June 30, 2000 and June 30, 1999 are fairly presented in all material respects. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:TEE:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were Clifton Gunderson L.L.C. DIGEST FOOTNOTES #1: INADEQUATE COLLECTION AND MONITORING OF DELINQUENT ACCOUNTS RECEIVABLE - Previous Agency Responses. 1998: "The Agency accepts the finding. The establishment of an accurate and reliable data management system is the first step in pursuing an effective and efficient accounts receivable collection effort. Having made this first step, the Agency is studying specific means whereby each facet of the recommendation can be implemented. The Agency will confer with the Debt Collection Board in this effort. In conjunction, the Agency will determine a reasonable method to determine an allowance for uncollectible accounts to ensure net accounts receivable are properly reported." 1996: "The Agency accepts the finding and each of the recommendations." 1994: "The Agency is in agreement with this finding and the recommendation... "The Agency is working with the Illinois Debt Collection Board concerning the collections and assessment of past due accounts. The Office of the Attorney General will also be contacted regarding this process." 1992: "The Agency accepts this finding. The Agency is taking steps to eliminate the backlog in order that the accounts receivable can be reviewed on a regular basis..." 1990: "The Agency accepts this finding... "The Agency takes this finding seriously and has begun compliance with the items noted in the recommendation. The Agency is currently installing a new software release which will greatly enhance the ease of use in terms of reporting and targeting collection efforts..." #2: DISASTER CONTINGENCY PLAN WEAKNESSES – Previous Agency Responses.
The Agency will continue to test for the recovery of applications on the CMS mainframe. In addition, the Agency has identified a facility that is appropriate for the testing of its LAN applications. Testing will be scheduled and the results evaluated, on a timely basis. The Agency will monitor such results and make adjustments to its Disaster Contingency Plan as needed. 1996: "The Disaster Contingency Plan will be tested during FY97. Modifications discussed in the recommendation will be made." |