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

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2007

 

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

 

 

GOVERNOR

 

 

     During Examination Period:  Honorable Rod R. Blagojevich

     Currently:  Honorable Rod R. Blagojevich

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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
 Committee - 4 vacancies

·     Community Water Supply Operator's Advisory Board
 - 2 vacancies

·     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
 Dependency - 6 vacancies

·     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.