REPORT DIGEST

ILLINOIS STUDENT ASSISTANCE COMMISSION

STATE COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2008

Summary of Findings:

Total this audit 6

Total last audit 9

Repeated from last audit 1

Release Date:

May 21, 2009

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

INTRODUCTION

This report digest covers the State Compliance Examination of the Illinois Student Assistance Commission for the year ended June 30, 2008. The Financial Audit was previously issued in a separate report.

SYNOPSIS

¨ The Commission did not include the required explanations on all late filing affidavits for contracts filed late with the Illinois Office of the State Comptroller.

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

ILLINOIS STUDENT ASSISTANCE COMMISSION

STATE COMPLIANCE EXAMINATION

For The Year Ended June 30, 2008 (In Thousands)

EXPENDITURE STATISTICS	FY 2008	FY 2007	FY 2006
· Total Expenditures (All Appropriated Funds).................................................. OPERATIONS TOTAL................................... % of Total Expenditures............................... Personal Services........................................ % of Operations Expenditures................ Other Payroll Costs (FICA, Retirement)...... % of Operations Expenditures................ Contractual Services.................................... % of Operations Expenditures................ Telecommunications..................................... % of Operations Expenditures................ Lump Sums................................................. % of Operations Expenditures................ All Other Operations Items.......................... % of Operations Expenditures................ AWARDS & GRANTS TOTAL...................... % of Total Expenditures............................... Grant Awards to Eligible Students................ % of Awards and Grants...................... Federal Guarantee Distributions................... % of Awards and Grants...................... All Other Grants and Awards....................... % of Awards and Grants...................... · Net Cost of Property and Equipment.......	$699,891,072 $48,785,345 7.0% $14,298,951 29.3% $7,155,909 14.7% $8,359,818 17.1% $479,663 1.0% $17,752,582 36.4% $738,422 1.5% $651,105,727 93.0% $380,657,809 58.5% $219,840,422 33.7% $ 50,607,496 7.8% $13,610,000	$682,702,890 $45,520,183 6.7% $15,056,423 33.1% $6,773,259 14.9% $7,348,227 16.1% $566,009 1.2% $15,369,479 33.8% $406,786 0.9% $637,182,707 93.3% $354,259,525 55.6% $179,771,154 28.2% $103,152,028 16.2% $14,182,000	$593,316,928 $36,960,061 6.2% $16,306,231 44.1% $6,958,439 18.8% $8,367,276 22.6% $509,526 1.4% $4,425,410 12.0% $393,179 1.1% $556,356,867 93.8% $345,770,562 62.1% $164,041,982 29.5% $46,544,323 8.4% $14,766,000
SELECTED ACTIVITY MEASURES	FY 2008	FY 2007	FY 2006
· Total Receipts per Comptroller (All Funds).. · Expenditures of Federal Awards.................. · Average Number of Employees................... · Number Students Receiving MAP Award.. · Number of Loans Guaranteed.................... * Unaudited	$435,855,000 $227,175,000 447 145,543 198,227	$388,171,000 $295,928,000 501 146,635 199,272	$323,124,000 $276,103,000 519 146,853 222,981
AGENCY DIRECTOR(S)
During Audit Period: Mr. Andrew Davis Currently: Mr. Andrew Davis

Explanations on late filing affidavits were incomplete

50% of contracts were filed late

Contracts ranged from 32 to 304 days late

The Commission accepted our recommendation

INTRODUCTION

The Illinois Student Assistance Commission (Commission) was created to establish and administer a system of financial assistance through loan guarantees, scholarships, grant awards and a prepaid tuition program for residents of the State of Illinois to enable them to attend qualified public or private institutions of their choice.

FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

LATE FILING AFFIDAVITS INCOMPLETE

The Illinois Designated Account Purchase Program (IDAPP) did not include the required explanations on all contract late filing affidavits for contracts filed late with the Illinois Office of the Comptroller.

During our examination of non-appropriated contracts, we noted 10 of 20 (50%) non-appropriated contracts were filed late to the Comptroller’s office and the corresponding Late Filing Affidavit did not indicate an explanation or reason why the contract liability was not filed timely. The contracts ranged from 32 days late to 304 days late with amounts ranging from $12,000 to $720,000.

When a contract has not been filed within 30 days of execution, the agency is required to file a Late Filing Affidavit signed by the Chief Executive Officer setting forth an explanation of why the contract liability was not filed within 30 days of execution.

According to Commission management, these contracts were not filed in time due to resource constraints. (Finding 6, page 16)

Commission officials concurred with our recommendation to comply with SAMS requirements and file all contracts executed within the required timeframe and in those situations when a contract cannot be filed timely include a properly completed Late Filing Affidavit when filing contracts late with the Comptroller.

OTHER FINDINGS

Other findings are reportedly being given attention by Commission management. We will review progress toward implementation of our recommendations in our next financial audit.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

AUDITORS ASSIGNED

McGladrey & Pullen, LLP were our special assistant auditors for this engagement.