REPORT DIGEST

DEPARTMENT OF STATE POLICE

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2002

Summary of Findings:

Total this audit 3
Total last audit 3
Repeated from last audit 0

Release Date:
March 6, 2003

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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 Department had not exercised adequate controls over property and equipment records.
  • The Department’s Office of Inspections and Audit had not complied with all provisions of the Fiscal Control and Internal Auditing Act.

 

 

 

 

 

 

 

 

 

 

(Expenditure and Activity Measures are summarized on the next page.)

 

DEPARTMENT OF STATE POLICE
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 2002

EXPENDITURE STATISTICS

FY 2002

FY 2001

FY 2000

Total Expenditures (All Funds)

$324,776,883

$325,117,018

$310,944,359
OPERATIONS TOTAL
% of Total Expenditures

$323,045,895
99.5%

$324,012,778
99.7%

$307,153,957
98.8%
Personal Services
% of Operations Expenditures
Average No. of Employees

$197,546,885
61.2%
3,740

$186,940,527
57.7%
3,669

$176,619,663
57.5%
3,654
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$35,344,710
10.9%

$33,293,101
10.3%

$30,981,178
10.1%
Contractual Services
% of Operations Expenditures

$17,766,467
5.5%

$18,403,210
5.7%

$17,357,957
5.6%
All Other Operations Items
% of Operations Expenditures

$72,387,833
22.4%

$85,375,940
26.3%

$82,195,159
26.8%
GRANTS, REFUNDS, IMPROVEMENTS, TOTAL
% of Total Expenditures

$1,730,988

.5%

$1,104,240

.3%

$3,790,402

1.2%

Cost of Property and Equipment

$237,337,375

$226,204,953

$218,210,085
SELECTED ACTIVITY MEASURES

FY 2002

FY 2001

FY 2000

Sworn Officers

2,040

2,038

2,013

IL Vehicle Code Citations

470,763

432,392

412,895

Motorist Assists

114,121

102,324

85,143

Criminal Arrests from Investigations

5,571

5,325

4,725

Arrests for Drug Related Offenses

2,393

2,582

2,578

Crime Scenes Processed

4,846

4,896

5,161
AGENCY DIRECTOR(S)

During Audit Period: Mr. Sam Nolen
Currently: Mr. Sam Nolen
 

 

 

 

 

 

 

Inadequate controls over reporting of property and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncompliance with provisions of the Fiscal Control and Internal Auditing Act

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PROPERTY AND EQUIPMENT

The Department had not exercised adequate controls over property and equipment records. We noted the following:
  • The Department did not provide supporting documentation in a timely manner for property and equipment transactions totaling approximately $159 million, and accumulated depreciation totaling $83 million. The information was not provided to the auditors until September 2002. The Department had overstated property and equipment by $414,000 and accumulated depreciation by $5.4 million.
  • The Department could not provide documentation of property and equipment deletions totaling approximately $70 million.
  • The Department could not provide documentation for reclassification reductions from land and land improvements and building and building improvements to site improvements totaling approximately $6 million.
  • The Department did not include an asset item totaling $60,000 in the property and equipment or accumulated depreciation amount reported to the Office of the Comptroller.
  • The Department did not revise the fiscal year 2002 State Comptroller GAAP forms as of the end of our fieldwork. Specifically, property and equipment amounts were inaccurately reported as follows:
    • Site improvements overstated by $113,000.
    • Building and building improvements overstated by $649,000.
    • Capital leases for buildings overstated by $1,000.
    • Equipment understated by $349,000.
  • The Department did not provide a complete universe of additions and deletions for fiscal years 2001 and 2002.

We recommended the Department comply with the State Property Control Act to ensure property records are complete and accurate. (Finding 1, pp. 8-9)

Department officials concurred with our recommendation and stated they will develop an action plan and assign responsibility for implementing the recommendation accordingly.

INTERNAL AUDIT DEFICIENCIES

The Department’s Office of Inspections and Audit (I&A) did not comply with provisions of the Fiscal Control and Internal Auditing Act (FCIAA). We noted the following:
  • I&A did not perform scheduled audits as outlined by the audit plan for fiscal years 2001 and 2002. Therefore, they did not review all major systems internally at least every two years as required by the Fiscal Control and Internal Auditing Act. A total of four major systems were not audited.
  • I&A performed only one grant audit. However, the Department expends approximately $14 million in federal grants each fiscal year and one grant review does not sufficiently allow the Department to determine that it is using grant funds in accordance with grant requirements and applicable State and federal laws, regulations and rules.
  • I&A did not review five system development projects or six major system enhancements.

We recommended the Department devote adequate resources to I&A to ensure audits of major systems are performed at least once every two years, mandated reviews of computer systems are performed, and grants are adequately reviewed. (Finding 2, pp. 10-12)

Department officials generally concurred with our recommendations.

OTHER FINDINGS

The remaining finding is less significant and is reportedly being given attention by the Department. We will review the Department's progress toward implementation of our recommendations in our next audit.

AUDITORS’ OPINION

We conducted a compliance audit of the Department as required by the Illinois State Auditing Act. We have not audited any financial statements of the Department for the purpose of expressing an opinion because the Department does not, nor is it required to, prepare financial statements.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were FPT&W, Ltd.