REPORT DIGEST

OFFICE OF THE GOVERNOR

FINANCIAL AND COMPLIANCE AUDIT
(In Accordance with the Single Audit Act and OMB Circular A-128)
For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
May 13, 1998

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Office of the Governor did not have a system in place to ensure compliance with certain statutory mandates applicable to the Agency. Agency officials agreed to either comply with the mandates or pursue legislation to repeal or modify certain sections of the statutes they believe are outdated.
  
  
  
  
  
  
  
  
  
  
  
  

{Expenditures and Activity Measures are summarized on the reverse page.}

FY 1997

FY 1996

FY 1995

• Total Expenditures (All Funds)
  OPERATIONS TOTAL
  % of Total Expenditures
  Personal Services
  % of Operations Expenditures
  No. of Employees at June 30
  Other Payroll Costs (FICA, Retirement)
  % of Operations Expenditures
  Contractual Services
  % of Operations Expenditures
  Telecommunications
  % of Operations Expenditures
  Electronic Data Processing
  % of Operations Expenditures
  Celebrations, Receptions & Events
  % of Operations Expenditures
  Executive Mansion Trust Fund
  % of Operations Expenditures
  All Other Operations Items
  % of Operations Expenditures
  GRANTS TOTAL
  % of Total Expenditures

• Cost of Property and Equipment

$7,906,547
$7,753,384
98.1%
$5,044,129
65.1%
122
$793,161
10.2%
$722,983
9.3%
$306,019
3.9%
$441,609
5.7%
$99,988
1.3%
$45,305
.6%
$300,190
3.9%
$153,163
1.9%

$6,748,609

$7,470,227
$7,308,427
97.8%
$4,582,770
62.7%
119
$716,537
9.8%
$754,314
10.3%
$323,497
4.4%
$420,100
5.8%
$99,993
1.4%
$87,435
1.2%
$323,781
4.4%
$161,800
2.2%

$6,107,185

$7,762,219
$7,539,020
97.1%
$5,080,971
67.4%
116
$766,197
10.2%
$698,880
9.3%
$290,298
3.9%
$249,536
3.3%
$99,989
1.3%
$78,868
1.0%
$274,281
3.6%
$223,199
2.9%

$5,947,389

FY 1997

FY 1996

FY 1995

• Illinois Executive Mansion Trust Fund: Proceeds from Private Party Activities
• Cash Receipts - Federal Grants

$45,153
150,000

$52,952
150,000

$105,575
217,200

During Audit Period: Honorable Jim Edgar, Governor
Currently: Honorable Jim Edgar, Governor

Office not in compliance with certain laws

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH STATUTORY MANDATES

The Office of the Governor did not have a system in place to ensure compliance with certain statutory mandates applicable to the agency.

Four mandates tested were not complied with because Office personnel in the governor's legal office were not aware of the requirements. According to Office legal staff, they were not aware of the following:

• The Office did not approve requests by Illinois Counties for the construction and maintenance of sewers located on State land (55 ILCS 5/5-15011).

• The Office did not provide the General Assembly leaders notice of correctional construction sites as required by the Unified Code of Corrections (730 ILCS 5/3-7-2b).

• The Office did not approve payments for animals slaughtered under the Diseased Animals Act (510 ILCS 50/11).

• The Office of the Governor did not designate a week in May to be known as "Illinois Law Week" as required by the School Code (105 ILCS 5/27-20.1).

Another mandate tested was not complied with because staff of the Governor's Office believes the current practice is more appropriate. The Regulatory Agency Sunset Act (5 ILCS 80/5) requires the Governor to review the reports of the Bureau of the Budget and make recommendations (in each even-numbered year) to the General Assembly on the termination or continuance of regulatory agencies.

According to Office personnel in the Governor's legal office, although not done as part of the budget process, they review the Bureau of the Budget reports and submit annual reports to the Department of Professional Regulation. That Department then works with the regulated entities to develop the recommendations which are submitted to the General Assembly as bills each year. (Finding 97-1, page 23)

Agency officials agreed to either comply with the mandates or pursue legislation to repeal or modify certain sections of the statutes they believe are outdated.

AUDITORS' OPINION

Our auditors state the Office of the Governor's June 30, 1997 and 1996 financial statements are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:TEE:pp

SPECIAL ASSISTANT AUDITORS

Guthoff & Company, Ltd. were our special assistant auditors for this audit.