REPORT DIGEST

ILLINOIS PLANNING COUNCIL ON DEVELOPMENTAL DISABILITIES

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:
March 18, 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 Council membership did not meet statutory requirements. The Council was not composed of the required number of members, and it failed to meet the required number of times.

• The Council did not adequately monitor audit reports submitted by subgrantees.
  
  
  
  
  
  
  
  

{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
  Average No. of Employees
  
  Other Payroll Costs (FICA, Retirement)
  % of Operations Expenditures
  
  Contractual Services
  % of Operations Expenditures
  
  All Other Items
  % of Operations Expenditures
  
  GRANTS TOTAL
  % of Total Expenditures
  
  
  
• Cost of Property and Equipment
  
  
  
  
  
  
  
  
  

$1,971,592

$1,021,148
52%

$528,216
52%
12

$136,901
13%

$266,269
26%

$89,762
9%

$950,444
48%


$339,508

$2,351,187

$1,115,666
47%

$646,700
58%
14

$162,834
14%

$231,535
21%

$74,597
7%

$1,235,521
53%


$312,773

$2,680,440

$1,409,628
53%

$779,484
55%
18

$223,354
16%

$290,383
21%

$116,407
8%

$1,270,812
47%


$337,884

FY 1997

FY 1996

FY 1995

• Grants Awards Initiated

10

37

20

During Audit Period: Rene Leininger

Currently: Rene Leininger

 

Noncompliance with statute

Subgrantee monitoring was not adequate

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

COUNCIL MEMBERSHIP DID NOT MEET STATUTORY REQUIREMENTS

The Council membership did not meet certain statutory requirements. During the audit period, the Council was not composed of the required number of persons and we were unable to determine if members of the Council who were serving under the developmental disabilities designation fulfilled the criteria of a developmentally disabled person as set forth in statute. In addition, two members currently serving on the Council had previously completed a two term limit. We further noted, the Council only met six of the required eight times. (Finding 1, page 19)

We recommended the Council continue to submit timely requests for appointment and reappointment of Council members to the Governor, keep the Governor's Office apprised of those members not eligible for reappointment due to term limitations, and provide assurance that appointed Council members meet statutory criteria. We further recommended the Council hold meetings quarterly as required.

The Council accepted our recommendation and is developing a corrective action plan that will meet immediate and on-going membership issues. The Council stated it will also maintain the quarterly Council meeting schedule.

INADEQUATE GRANT MONITORING

The Council did not adequately monitor audit reports submitted by subgrantees. One of nine (12%) subgrantees tested did not submit an audit report performed by a Certified Public Accountant. In addition, those reports filed did not contain the required opinion letters and Schedule of Federal Financial Assistance. (Finding 3, page 22)

We recommended the Council establish procedures to provide subgrantees with information regarding audit requirements and monitor the subgrantees to ensure compliance. We further recommended the Council require the subgrantee have an audit performed by a Certified Public Accountant.

The Council accepted our recommendation and will enhance its procedures to ensure subgrantees comply with audit requirements and will ensure that an audit of the subgrantee is performed by a Certified Public Accountant.

OTHER FINDINGS

The remaining finding is less significant and the Council has responded that corrective action is in process. We will review progress towards implementation of the recommendation in the next audit.

Ms. Rene Christensen Leininger, Director, provided responses to our findings and recommendations.

AUDITORS' OPINION

We stated the financial statements of the Council as of and for the years ended June 30, 1997 and 1996 are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

SPECIAL ASSISTANT AUDITORS

Sulaski & Webb were our special assistant auditors for this audit.