REPORT DIGEST

GOVERNOR’S OFFICE OF MANAGEMENT AND BUDGET

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended: June 30, 2011

Release Date:  November 15, 2012

Summary of Findings:

Total this audit: 8

Total last audit:  10

Repeated from last audit: 5

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

• The Office did not exercise adequate control over cash receipts.  

• The Office did not submit accurate “Reports of Receipts and Disbursements for Locally Held Funds” to the Office of the Comptroller.

• The Office did not exercise adequate control over its travel functions. 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER CASH RECEIPTS

The Governor’s Office of Management and Budget (Office) did not exercise adequate controls over cash receipts.  We noted 16 of 16 (100%) receipts tested, totaling $1,106,023, were deposited between 2 and 111 days late. 

We recommended the Office deposit cash receipts timely according to the State Officers and Employees Money Disposition Act.  (Finding 1, page 9)

Office officials concurred with our recommendation and noted they are taking corrective action. 

INACCURATE LOCALLY HELD FUND REPORTS

The Office did not submit accurate “Reports of Receipts and Disbursements for Locally Held Funds” (C-17) reports to the Office of the Comptroller.  We noted discrepancies between the C-17’s and related bank statements for 19 of 58 (33%) C-17’s filed during the examination period. 

We recommended the Office implement procedures to review all C-17 reports prepared for accuracy prior to submission to the Office of the Comptroller.  (Finding 2, page 10)

Office officials concurred with our recommendation and noted they are taking corrective action. 

INADEQUATE CONTROL OVER TRAVEL FUNCTIONS

The Office did not exercise adequate control over its travel functions.  We noted 18 of 40 (45%) travel vouchers tested, totaling $8,947, were submitted between 7 and 162 days late. 

We recommended the Office exercise adequate control over travel expenditures and require employees to submit travel vouchers in accordance with Office policies.  (Finding 3, page 11)  This finding was first reported in 2005. 

Office officials concurred with our recommendation and noted they have reiterated the importance of timely travel voucher submission to their staff.  (For previous agency response, see Digest Footnote #1)

OTHER FINDINGS

The remaining findings are reportedly being given attention by the Office.  We will review the Office’s progress towards implementation of our recommendations in our next examination. 

AUDITOR’S OPINION

We conducted a compliance examination of the Governor’s Office of Management and Budget as required by the Illinois State Auditing Act.  The Governor’s Office of Management and Budget has no funds that require an audit leading to an opinion on financial statements. 

WILLIAM G. HOLLAND

Auditor General

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SPECIAL ASSISTANT AUDITORS

CliftonLarsonAllen, LLP were our Special Assistant Auditors for this engagement. 

DIGEST FOOTNOTE

#1 - Inadequate control over travel functions - Previous Agency Response

The Office acknowledged the conditions noted in the finding and commented on the problems.