REPORT DIGEST

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:

 

 

 

SYNOPSIS

¨ The Department of Human Rights expended appropriated funds for purposes not directly related to the appropriations.

¨ The Department did not maintain adequate control over property.

¨ The Department did not maintain adequate records for receipts and refunds.

¨ The Department did not maintain adequate control over voucher processing.

¨ The Department did not maintain adequate support for year-end financial information.

 

 

{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
Number of Employees

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

Contractual Services
% of Operations Expenditures

Backlogged Cases
% of Operations Expenditures

All Other Operations Items
% of Operations Expenditures

GRANTS TOTAL
% of Total Expenditures

• Cost of Property and Equipment

$8,425,426

$8,425,426
100%

$4,788,661
56.8%
201

$840,627
10.0%

$206,564
2.5%

$2,259,789
26.8%

$329,785
3.9%

--
--

$1,124,085

$7,385,300

$7,357,415
99.6%

$4,793,146
65.2%
201

$848,789
11.5%

$205,919
2.8%

$1,197,500
16.3%

$312,061
4.2%

$27,885
.4%

$1,047,215

$6,171,311

$6,135,413
99.4%

$4,508,929
73.5%
136

$758,933
12.4%

$157,896
2.6%

--
--

$709,655
11.5%

$35,898
0.6%

$829,635

FY 1997

FY 1996

FY 1995

• Open Discrimination Cases as of 6/30
• New Discrimination Cases Filed
• Charges Completed per Month
• Number of Applications for State Contract Awards

3,458
3,451
6.9
3,831

6,021
3,997
7.2
3,864

7,162
4,393
7.8
3,688

Supporting financial information was not maintained

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NONCOMPLIANCE WITH APPROPRIATION ACTS

 

The Department did not comply with certain provisions of its Appropriation Acts.

 

The Department was appropriated spending authority for the Charge Processing Division through the Special Projects Division Fund. In addition, the Department received a lump sum appropriation through the General Revenue Fund for the reduction of backlogged cases.

 

We noted 15 vouchers totaling $5,246 that were charged to the Special Projects Division Fund which were not directly related to the Charge Processing Division. Also, 3 vouchers totaling $1,083 that were charged to the lump sum appropriation were not directly related to the reduction of backlogged cases. (Finding 1, pages 21-22)

 

We recommended the Department comply with the specific purposes and limits established in the Appropriation Acts. Further, we recommended the Department review its operations and request funds to be appropriated in accordance with its needs.

 

Department officials stated all components of the Agency are related directly or indirectly to the Charge Processing effort and that all expenditures charged to the lump sum appropriation were relevant and necessary to the elimination of the backlog project. Nevertheless, the transactions noted in the finding, which included such items as bottled water, expenses of an executive retreat, and printing of annual reports, were not properly charged to the appropriations cited. The Department received an annual appropriation for its Administrative Division which may have been more appropriate for the type of expenditures in question.

 

 

INADEQUATE CONTROL OVER PROPERTY

 

The Department did not maintain adequate control over property.

 

Overall, we noted property items that were not tagged, could not be located, or could not be traced to property information. Also, the Department did not maintain an adequate permanent record of property during FY96 and FY97. Only records of property additions and deletions were retained for these years. There was a permanent record for FY95. In addition, the Department did not submit accurate quarterly fixed asset reports to the Comptroller. The June 30, 1997 ending property balance was understated by $22,707. (Finding 2, pages 23-25)

 

We recommended the Department maintain, record and report property as required by the State Property Control Act, the Illinois Administrative Code and the Statewide Accounting Management System Manual.

 

The Department accepted the recommendation and responded it has updated the permanent record of property and has supplemented procedures to ensure recordkeeping will be accurate.

 

 

INADEQUATE CONTROL OVER RECEIPTS AND REFUNDS

 

The Department did not maintain adequate records for receipts and refunds.

 

We noted the following:

¨ The Department did not maintain a receipt ledger or refund ledger documenting the date of receipt, payor, purpose, and the amounts of cash receipts.

¨ Four of 48 (8%) monthly reconciliations of Department records to the Comptroller's "Monthly Receipts Ledger" were performed incorrectly.

¨ The date of receipt was not documented for 12 of 35 (34%) receipts tested and 10 of 11 (91%) refunds tested. As a result, we were unable to determine timeliness of deposit.

We recommended the Department maintain cash receipt as required by the State Officers and Employees Money Disposition Act. In addition, the Department should follow the Statewide Accounting Management System procedures to ensure that receipts are properly recorded and deposited and that reconciliations are properly performed.

 

Department officials responded they have implemented more stringent monitoring and reconciliation review procedures.

 

 

INADEQUATE CONTROL OVER VOUCHER PROCESSING

 

The Department did not have adequate control over voucher processing.

 

We noted the following:

¨ Sixty-eight of 210 (32%) vouchers totaling $96,887 were not approved within 30 days from receipt of invoice. The vouchers averaged 70 days for processing.

¨ Forty-nine of 402 (12%) vouchers totaling $83,201 were not date stamped; therefore, we were unable to determine timeliness of approval.

¨ Twenty-five of 402 (6%) vouchers tested totaling $99,441 did not have adequate supporting documentation.

We recommended the Department strengthen controls over voucher processing by establishing policies and procedures to ensure vouchers are properly date stamped, approved in a timely manner, and supported with adequate documentation.

 

The Department accepted the recommendation and responded it would establish a more stringent policy.

 

 

INADEQUATE SUPPORT FOR YEAR-END FINANCIAL INFORMATION

 

The Department did not maintain adequate supporting documentation for reported year-end financial information.

 

The Department was unable to readily provide supporting documentation for year-end amounts reported to the Office of the Comptroller in the General Revenue and Special Projects Division Funds.

 

We recommended the Department maintain necessary supporting schedules and document all calculations made during the preparation of year-end financial information.

 

Department officials responded they have implemented steps and hired staff to ensure that all supporting documentation is retained in file.

 

Responses to the recommendations were provided by Maria Ulmer, Fiscal Officer for the Department of Human Rights.

 

AUDITOR'S OPINION

We have stated the financial statements for the Illinois Department of Human Rights as of and for the two years ended June 30, 1997 are fairly presented in all material respects.

___________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:PW:ak

AUDITORS ASSIGNED

This audit was performed by the Office of the Auditor General's staff.