REPORT DIGEST

OFFICE OF THE GOVERNOR

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 3
Total last audit 1
Repeated from last audit 1

Release Date:
April 20, 2000

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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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

 

 

 

SYNOPSIS

 

The Office of the Governor did not have procedures in place to control property items at the time of the administration’s transition. Neither administration took a physical inventory that coincided with the transition and thus could not provide explanations for some missing property items.

 

 

 

 

 

 

 

 

 

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

 

 

 

OFFICE OF THE GOVERNOR
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 1999
EXPENDITURE STATISTICS

FY 1999

FY 1998

FY 1997

Total Expenditures (All Funds)

$8,400,675

$7,663,492

$7,906,547

OPERATIONS TOTAL

% of Total Expenditures

$8,345,076

99.3%

$7,513,887

98.0%

$7,753,384

98.1%

Personal Services
% of Operations Expenditures
No. of Employees at June 30

$5,149,671
61.7%
127

$4,990,989
66.4%
129

$5,044,129
65.1%
122

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$1,031,000
12.4%

$871,667
11.6%

$793,161
10.2%

Contractual Services
% of Operations Expenditures

$739,855
8.9%

$756,786
10.1%

$722,983
9.3%

Telecommunications
% of Operations Expenditures

$327,995
3.9%

$277,396
3.7%

$306,019
3.9%

Electronic Data Processing
% of Operations Expenditures

$375,177
4.5%

$187,818
2.5%

$441,609
5.7%

Celebrations, Receptions & Events
% of Operations Expenditures

$69,369
.8%

$99,800
1.3%

$99,988
1.3%

Executive Mansion Trust Fund
% of Operations Expenditures

$64,127
.8%

$74,971
1.0%

$45,305
.6%

Transition
% of Operations Expenditures

$189,707
2.3%

$0
0%

$0
0%

All Other Operations Items
% of Operations Expenditures

$398,175
4.8%

$254,460
3.4%

$300,190
3.9%

GRANTS TOTAL

% of Total Expenditures

$55,599

.7%

$149,605

2.0%

$153,163

1.9%

Cost of Property and Equipment

$6,995,933

$6,836,160

$6,745,437
SELECTED ACTIVITY MEASURES

FY 1999

FY 1998

FY 1997

Illinois Executive Mansion Trust Fund:

Proceeds from Private Party Activities

$116,846

$100,038

$45,153

Cash Receipts - Federal Grants

$50,000

$150,000

$150,000
AGENCY DIRECTOR(S)

During Audit Period: Honorable Jim Edgar, Governor (thru January 11, 1999)
Honorable George H. Ryan, Governor (Inaugurated on January 11, 1999)
Currently: Honorable George H. Ryan, Governor
 

 

 

Missing property unexplained

 

 

 

 

 

 

 

Unable to locate 42 items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER PROPERTY

The Office did not have procedures in place to control property items at the time of the administrations’ transition. Neither administration took a physical inventory that coincided with the transition and thus could not provide explanations for several missing property items.

We chose 45 items to physically examine – 18 from the Executive Mansion and 27 from other Office locations. Office staff could not locate six (valued at about $3,000) of the 18 items at the Mansion. After researching the missing items, they informed us that three of the items should have been surplused by the prior administration, and after discussion with prior administration mansion personnel, reported the other three items to Central Management Services as lost.

According to current Office personnel, they originally identified 155 property items (with a cost of $84,000) that they could not locate – 61 at the Executive Mansion, 21 in their Chicago office, and the remaining 73 at other Springfield office locations. Of the 155 items, they were able to locate 37 items and reported another 76 items as transferred to another location, lost or surplused. Of the remaining 42 items that they cannot locate, only four are valued at over $500.

The State Property Control Act (30 ILCS 605/4) states that each Agency is responsible for the supervision, control, and inventory of all property under its jurisdiction. By not taking a joint inventory at the time of transition, both administrations contributed to the uncertainty of the missing items. When adequate control over property is not maintained, it is difficult to determine who is responsible for missing items. (Finding 1, pages 14-15)

Agency officials agreed to continue its efforts to locate the missing items and stated they will offer to conduct a joint inventory with representatives of the incoming administration at the time of the next transition.

OTHER FINDINGS

The remaining two findings and recommendations are less significant and have been given attention by the Agency. We will review progress towards the implementation of our recommendations during the Agency’s next audit.

The responses to our findings and recommendations were provided by Travis L. March, Director, Office of Operations and Fiscal Management.

AUDITORS’ OPINION

Our auditors state the Office of the Governor’s June 30, 1999 and 1998 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.