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REPORT DIGEST OFFICE OF THE GOVERNOR COMPLIANCE
EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this report 6 Total last report 6 Repeated findings 1 Release Date: May 22, 2008
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 the
Full Report are also available on the worldwide web at http://www.state.il.us/auditor |
SYNOPSIS ¨ The Office of the Governor did not make all required appointments to various boards and commissions. ¨ The Office of the Governor’s process to monitor interagency agreements was inadequate. ¨
The Office of
the Governor ordered and received 140 biometric readers (thumbprint scanners)
and associated software for their computers over a year and a half ago and
has not yet put most of them into use. {Expenditures and Selected
Account Balances are summarized on the reverse page.} |
OFFICE OF THE GOVERNOR
|
EXPENDITURE STATISTICS |
FY 2007 |
FY 2006 |
FY 2005 |
|
Total Expenditures (All Funds)................... |
$7,149,049 |
$7,327,200 |
$7,478,276 |
|
OPERATIONS
TOTAL..................................
% of Total Expenditures........................ |
$
7,149,036
100.0% |
$7,312,873
99.8% |
$7,473,601
99.9% |
|
Personal Services...................................
% of
Operations Expenditures...........
No. of
Employees at June 30.............
Average Employee Salary................ |
$
4,773,116
66.7%
89
$ 53,631 |
$4,913,447
67.1%
93
$ 52,833 |
$4,788,758
64.0%
94
$ 50,944 |
|
Other Payroll Costs (FICA,
Retirement)..
% of
Operations Expenditures........... |
$ 895,677
12.5% |
$ 736,651
10.1% |
$1,114,031
14.9% |
|
Contractual Services...............................
% of
Operations Expenditures........... |
$ 580,987
8.1% |
$ 609,486
8.3% |
$ 665,366
8.9% |
|
Travel............................................................
%
of Operations Expenditures.......................
Commodities...................................................
%
of Operations Expenditures.......................
Telecommunications........................................
% of
Operations Expenditures....................... |
$ 118,759
1.7%
$ 72,545
1.0%
$ 368,571
5.2% |
$ 89,439
1.2%
$ 49,515
0.7%
$ 533,431
7.3% |
$ 112,483
1.5%
$ 64,550
0.9%
$ 413,726
5.5% |
|
Electronic Data Processing..............................
% of
Operations Expenditures....................... |
$ 177,417
2.5% |
$ 198,600
2.7% |
$ 125,015
1.7% |
|
Celebrations, Receptions & Events...................
% of
Operations Expenditures....................... |
$ 34,743
0.5% |
$
69,936
1.0% |
$ 49,154
0.7% |
|
Executive Mansion Trust Fund.........................
% of
Operations Expenditures....................... |
$ 51,622
0.7% |
$ 62,529
0.9% |
$ 45,886
0.6% |
|
All Other Operations Items.....................
% of
Operations Expenditures........... |
$ 75,599
1.1% |
$ 49,839
0.7% |
$ 94,632
1.3% |
|
GRANTS
TOTAL..........................................
% of Total Expenditures......................... |
$ 13
0.0% |
$ 14,327
0.2% |
$ 4,675
0.1% |
|
Cost of Property and Equipment.................. |
$8,352,549 |
$8,268,455 |
$7,202,717 |
|
SELECTED ACCOUNT BALANCES |
FY 2007 |
FY 2006 |
FY 2005 |
|
Illinois
Executive Mansion Trust Fund:
Proceeds from Private Event
Activities............. |
$94,277 |
$107,547 |
$94,795 |
|
Account
Receivable Balances.............................. |
$16,191 |
$ 4,248 |
$10,558 |
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GOVERNOR |
|
|
|
During Examination Period:
Honorable Rod R. Blagojevich
Currently: Honorable Rod R. Blagojevich |
|
|
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Seventeen boards
and commissions tested lacked the required number of appointees
None of the
required appointments were made to ten
boards and commissions tested
Interagency
agreements tested were not signed by either party before the effective date
Some interagency
agreements tested were not dated when signed
140 thumbprint
scanners were purchased in July 2006, only 5 have been installed Warranties on the
thumbprint scanners have expired without being used |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS APPOINTMENTS OF MEMBERS TO BOARDS AND COMMISSIONS The Office of the Governor did not make all
required appointments to the various boards and commissions. Seventeen of 53 (32%) of the boards and commissions tested did not have the required number of appointees. These were:
·
State
Rehabilitation Council - 4 vacancies
·
Board of the
Illinois State Museum - 3 vacancies
·
Statewide
Independent Living Council - 4 vacancies
·
Elevator
Safety Review Board - 1 vacancy
·
Community
Senior Services and Resource Center Advisory
·
Community
Water Supply Operator's Advisory Board
·
Illinois
Ethanol Research Advisory Board - 1 vacancy
·
Air Service
Commission - 2 vacancies
·
Ticket for
the Cure Board - 1 vacancy
·
Center for
Nursing Advisory Board - 1 vacancy
·
Epilepsy
Advisory Committee - 8 vacancies
·
Illinois
Advisory Council on Alcoholism and Other Drug
·
Teachers'
Retirement System Board of Trustees - 1 vacancy
·
Advisory
Council on the Education of Children with Disabilities - 7 vacancies
·
Illinois Student
Assistance Commission - 2 vacancies
·
Site
Remediation Advisory Committee - 3 vacancies
·
Illinois
River Coordinating Council - 1 vacancy In addition, no appointments were made to 10 of 53 (19%) of the boards and commissions tested. These were: · Illinois Steel Development Board · Mississippi River Coordinating Council · Hospital Basic Services Review Board · Central Illinois Economic Development Authority · Southern Illinois Economic Development Authority · Health Care Workplace Violence Prevention Task Force · Maternal and Child Health Advisory Board · HIV/AIDS Response Review Panel · Juvenile Advisory Board · Capital Punishment Reform Study Committee Office of the Governor (Office) personnel stated the screening and review of potential candidates prior to appointments requires time to fill vacancies for over 300 boards and commissions.
Failure to appoint
members to boards and commissions can result in those boards and commissions
not performing their duties. Failure
to appoint members also violates the specific statute that created the board
or commission. We
recommended the Office continue to pursue appointments to all boards and
commissions as mandated by statutes. (Finding 07-02, pages 11-13) Office management concurred with our recommendation and noted the Office will enhance current policies and procedures to improve the timing of appointments to all boards and commissions. INADEQUATE MONITORING OF INTERAGENCY AGREEMENTS During our testing of interagency agreements between the Office and other State agencies the following deficiencies were identified: · Seventeen of 25 (68%) interagency agreements tested were not signed by either party before the effective date. The agreements were signed 1 to 223 days after the effective date. · It could not be determined when one of 25 (4%) interagency agreements tested was signed by the agency entering into the agreement with the Office, because the agency signature authorizing the agreement was not dated. ·
One of 25 (4%) interagency agreements tested was
signed but never dated by any of the parties. Because the Office and the agency entering into the agreement
both failed to date the agreement, we were unable to determine if it was
signed prior to the effective date. Prudent business practices require the approval of agreements prior to the effective date. Office personnel stated the process and procedures used to monitor the interagency agreements did not carefully inspect signature dates.
In order to
assess whether the agreement is reasonable and appropriate, the agreement
needs to be approved prior the effective date. Erroneous payments could be made if payments are made before
the effective date or the date the agreement was signed by all parties. We
recommended the Office ensure all interagency agreements are approved by all
parties prior to the effective date of the agreements. (Finding
Code No. 07-3, page 14) Office management concurred with our recommendation and indicated a corrective plan and procedures have been implemented to insure the acquisition of all dated signatures prior to the effective dates. COMPUTER EQUIPMENT NOT
INSTALLED OR USED IN A TIMELY MANNER The Office paid $23,100
for 140 thumbprint scanners and software in July 2006, and 5 of the scanners
were installed soon after they were received. As of the end of our testing, approximately 16 months after
they were purchased, the others have not been installed or put into use. Good business practice
dictates purchases be made only when the appropriate resources and plans are
in place to allow for timely installation and use. This is especially true concerning computer related equipment
due to the rapid advances in technology.
Office personnel stated
they relied upon assurance given by the Department of Central Management
Services (CMS) as to compatibility and the timing of system upgrades which
would make the scanners operational.
The network has not been upgraded yet. Failure to install and
use the thumbprint scanners have resulted in the warranties expiring before
the Office could determine whether the product was functional. We recommended the Office
conduct appropriate planning and only purchase equipment when it can be put
into use in a timely manner. (Finding
Code No. 07-4, page 15)
Office management concurred with our recommendation and noted procedures and internal controls have been implemented to prevent any future occurrences of similar issues. In addition, it was indicated CMS is taking steps to upgrade the Office network which will enable the thumbprint scanners to be used. OTHER FINDINGS The remaining findings are reportedly being given attention by the Office. We will review the Office’s progress towards the implementation of our recommendations during our next engagement.
ACCOUNTANTS’
REPORT
We conducted a compliance attestation examination of the Office for the two years ending June 30, 2007 as required by the Illinois State Auditing Act. The Accountants’ Report does not contain any scope limitations, disclaimers or other significant non-standard language. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS Doehring, Winders & Co. LLP were our special assistant auditors for this engagement. |
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