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REPORT DIGEST
HISTORIC PRESERVATION AGENCY
COMPLIANCE
EXAMINATION For the Two Years Ended: June 30, 2008
Summary of Findings: Total this audit 15 Total last audit 9 Repeated from last audit 5 Release Date: June 11, 2009
State of Office of the Auditor General
WILLIAM G. HOLLAND AUDITOR GENERAL
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Report contact:
Office of the Auditor
General
(217)
782-6046 or TTY (888)
261-2887
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SYNOPSIS¨ The Agency did not exercise adequate controls over its administration of State grants. ¨ The Agency did not adequately monitor a grantee carrying out the duties of the Amistad Commission. ¨ The Agency inappropriately prepaid vendors for contracted services. ¨ The Agency did not develop required business plans for certain historic sites. ¨ The Agency did not publish its intent to award sole source contracts in the Illinois Procurement Bulletin as required.
{Expenditures and Activity Measures are summarized
on the reverse page.} |
COMPLIANCE EXAMINATION
For The Two Years Ended June 30, 2008
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EXPENDITURE STATISTICS |
FY 2008 |
FY 2007 |
FY 2006 |
|
Total Expenditures (All Funds)...............
|
$28,038,287 |
$27,156,079 |
$23,890,701 |
|
OPERATIONS TOTAL....................... % of Total Expenditures................. |
$27,333,900
97.5% |
$25,907,891
95.4% |
$23,570,022
98.7% |
|
Personal Services.......................... % of Operations Expenditures.... Average No. of Employees....... |
$8,811,867
32.2%
242 |
$8,730,815
33.7%
249 |
$8,828,197
37.5%
250 |
|
Other Payroll Costs (FICA, Retirement, Insurance).................. % of Operations Expenditures.... |
$2,204,394
8.1% |
$1,737,193
6.7% |
$1,478,699
6.3% |
|
Contractual Services.................... % of Operations Expenditures... |
$1,644,511
6.0% |
$1,684,349
6.5% |
$1,687,583
7.1% |
|
Presidential Library and Museum.. % of Operations Expenditures.... |
$10,831,718
39.6% |
$10,654,790
41.1% |
$9,164,059
38.9% |
|
All Other Operations Items.......... % of Operations Expenditures.... |
$3,841,410
14.1% |
$3,100,744
12.0% |
$2,411,484
10.2% |
|
AWARDS AND GRANTS TOTAL.... % of Total Expenditures................ |
$607,727
2.2% |
$237,053
0.9% |
$71,188
0.3% |
|
PERMANENT IMPROVEMENTS TOTAL % of Total Expenditures.............. |
$96,660
0.3% |
$1,011,135
3.7% |
$249,491
1.0% |
|
Cost of Property and Equipment........ |
$291,274,422 |
$284,889,206 |
$277,605,829
|
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SELECTED ACTIVITY
MEASURES
(not examined) |
FY 2008 |
FY 2007 |
FY 2006 |
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Visitors
to Sites: |
|
|
|
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All State-owned Historical Sites.......................... |
2,206,587 |
2,300,880 |
2,497,726 |
|
Abraham Lincoln Presidential Library ................ |
66,647 |
68,620 |
85,715 |
|
|
430,111 |
424,292 |
499,443 |
|
|
311,044 |
303,341 |
309,181 |
|
|
336,322 |
339,241 |
377,645 |
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Old State Capitol/Lincoln Herndon...................... |
139,699 |
159,645 |
161,051 |
|
IL |
213,584 |
254,431 |
283,334 |
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Black Hawk...................................................... |
124,974 |
141,251 |
142,942 |
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AGENCY DIRECTOR(S) |
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During Audit Period: Robert Coomer (until 12/31/07), Jennifer
Tirey (Interim Director 1/1/08-4/15/08), Janet Grimes (effective 4/16/08)
Currently: Janet Grimes |
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Grant agreements
did not require unexpended funds to be returned to the State
Grant agreements
did not contain detailed financial budgets
Quarterly reports
and evaluation summaries were missing
Grantee not adequately
monitored
$100,000 paid without
an agreement
No detailed
receipts or invoices maintained
Payments for
operation and maintenance of historic sites prior to receipt of services
Payment for vehicle
made prior to receipt
Business plans for
historic sites related to Abraham Lincoln were not developed
Notice of intent to
enter into sole source contracts not published
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FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
INADEQUATE CONTROL OVER GRANT MONITORING
The Agency did not exercise adequate controls over its administration of State grants. We reviewed 14 State grants awarded for educational, interpretative and special events related to the Abraham Lincoln Bicentennial Celebration, 5 grants provided to Certified Local Governments to assist in the implementation of their local preservation programs, and a grant to a Historical Society for costs in the operation of a historic site. We noted the following:
·
Fifteen
of 20 (75%) grant agreements tested, totaling $588,759, did not contain a
provision requiring all funds unexpended at the end of the grant agreement
period to be returned to the State within 45 days.
·
Five
of 20 (25%) grant agreements tested, totaling $292,801, did not include
detailed financial budgets or other detailed information regarding the use or
purpose of the grant funds.
·
Six of
20 (30%) grants tested, totaling $311,082, were missing a total of nine
quarterly reports.
·
Two of
20 (10%) grants tested, totaling $131,000, were missing an evaluation
summary.
·
One of 20 (5%) grants tested, totaling
$183,750, was missing the final report.
(Finding 1, pages 12-13)
We
recommended the Agency implement controls to ensure grant agreements contain
provisions necessary to properly administer State grant funds. In addition, we recommended the Agency
implement controls to ensure Agency grant monitors require grantees to submit
required reports timely to ensure grant funds are being expended as intended.
The Agency concurred with our recommendation and stated the omitted provision in the agreement pertaining to unspent funds was an oversight. In addition, the Agency will reinforce the various reporting requirements with grantees and stress with staff the importance of closely monitoring the grants.
INADEQUATE ADMINISTRATION OF
THE AMISTAD COMMISSION
The Agency did not adequately
monitor a grantee carrying out the duties of the Amistad Commission. In addition, the Agency was not fully
complying with all requirements of the Historic Preservation Act (Act)
regarding the Amistad Commission. We
noted the following:
·
The
Agency paid the grantee $100,000, on an FY07 voucher that stated on its face
“to prepare and distribute appropriate curriculum materials to assist schools
in training all students about the history of slavery and related
issues.” There was no agreement signed
by the parties that covered this payment.
The supporting documentation for the voucher did not contain detailed
receipts or invoices and only consisted of a memo to the Agency’s Director
dated August 27, 2007 that detailed the use of the funds for an event that
would take place on January 19, 2008 and contained the following details:
·
$18,480
for catering costs
·
$5,000 for
a conference and banquet hall
·
$40,000
for 4 keynote speakers (contracted at $10,000 each)
·
$2,000 for
the 4 speakers’ overnight accommodations and $2,000 for their air
transportation
·
$6,000 for
production and printing of the booklets
·
$1,050 for
the printing of invitations and $400 for mailing
·
$10,000
for administrative/indirect costs
·
$10,070
for development of a library for Commission members
·
$5,000 to
fund tickets for students to attend an education play.
(Finding 2, pages 14-15)
We recommended the Agency
ensure the requirements of the Act are being met by monitoring grantee
expenditures and activities for reasonableness and compliance with State
laws.
Agency officials
concurred
with our recommendation and stated they will work with the
Amistad Commission
more closely to insure reporting is timely and complete including supporting
documentation for Commission activities.
INAPPROPRIATE PREPAYMENTS
The Agency inappropriately prepaid vendors for contracted services. During testing, we noted four instances where the Agency paid in advance for goods and services: · The Agency contracted with various vendors to perform maintenance services and to operate historic sites. During FY07, a vendor was paid the annual contracted total of $13,500 in August 2006 and another vendor was paid the annual contracted total of $15,000 in February 2007. During FY08, a third vendor was paid the annual contracted total of $9,500 in October 2007. These payments were issued without detailed invoices or other supporting documentation and prior to Agency receipt of from 4 to 10 months of the contracted services. None of the contracts or vouchers contained an advance payment clause or other documentation noting the services were being paid in advance. · The Agency issued a voucher totaling $17,145 on 8/20/07 for a vehicle that had been ordered in April 2007 but was not received by the Agency until 8/30/07. (Finding 3, pages 16-17) We recommended the Agency only make payments for services rendered unless otherwise stipulated in the contract and ensure proper documentation is received prior to processing payments to vendors.
Agency officials concurred with our recommendation and stated they will process payments after services or goods are rendered or received, unless stipulated in the contract, and only after receiving the final invoice.
FAILURE TO DEVELOP INDIVIDUAL BUSINESS PLANS FOR HISTORIC SITES
The Agency did not develop required individual business plans for the historic sites at the Old State Capital, Lincoln Herndon Law Offices, and New Salem. The Historic Preservation Act (Act) was amended, effective August 14, 2007, to require the Agency to create an individual business plan for each historic site related to Abraham Lincoln no later than January 1, 2008. Each business plan was required to address ways to enhance tourism at the historic site and the historic aspect of each site. (Finding 5, page 19) We recommended the Agency comply with the statute by developing individual business plans for the Old State Capital, Lincoln Herndon Law Offices, and New Salem or seek legislative changes to remove the requirements. Agency officials concurred with our recommendation and stated the lack of funding and staff prevented such studies from being performed. The Agency will seek to have the statutory requirement changed or removed.
FAILURE TO PUBLISH NOTICES IN THE
The Agency did not publish its intent to award sole source contracts in the Illinois Procurement Bulletin (Bulletin) as required. The Agency failed to publish its notice of intent to enter into sole source contracts in the Bulletin for a contract for professional documentary services totaling $24,000 in FY07 and a contract for the maintenance and security of fire and alarm systems with related expenditures of $32,544 and $47,201, in FY07 and FY08, respectively. (Finding 9, page 23) We recommended the Agency implement and maintain procedures to ensure it adheres to the Illinois Procurement Code’s requirements regarding the publishing of sole source contracts on the Bulletin. Agency officials concurred with our recommendation and stated they will publish all notices when required.
OTHER FINDINGS The remaining findings are reportedly being given attention by the Agency. We will review the Agency's progress toward implementation of our recommendations in our next compliance examination.
STATE COMPLIANCE EXAMINATION –ACCOUNTANTS REPORT The auditors qualified their report on State Compliance for findings 08-1, 08-2, and 08-3. Except for the noncompliance described in these findings, the auditors state the Agency complied, in all material respects, with the requirement described in the report. ____________________________________ WILLIAM G. HOLLAND, Auditor General
WGH:PH:pp
ASSIGNED AUDITORS The compliance examination was conducted by the Auditor General’s staff. |
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