REPORT DIGEST DEPARTMENT OF STATE POLICE COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this audit 7 Total last audit 12 Repeated from last audit 4 Release Date: July 8, 2009 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 Iles Park Plaza 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and the Full Report are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS · The Department did not exercise adequate control over the recording and reporting of its property and equipment. · The Department did not maintain adequate controls over its contractual agreements. · The Department did not exercise adequate control over voucher processing. (Expenditure and Activity Measures are summarized on the next page.)

DEPARTMENT OF STATE POLICE

COMPLIANCE EXAMINATION

For the Two Years Ended June 30, 2008

EXPENDITURE STATISTICS			FY 2008	FY 2007			FY 2006
Total Expenditures (All Funds)................			$368,537,919	$363,679,877			$336,153,898
OPERATIONS TOTAL........................ % of Total Expenditures....................			$358,267,944 97.2%	$351,930,597 96.8%			$319,425,806 95.0%
Personal Services............................. % of Operations Expenditures..... Average No. of Employees..........			$232,961,067 65.0% 3,322	$219,615,177 62.4% 3,368			$207,898,587 65.1% 3,294
Other Payroll Costs (FICA, Retirement)................................... % of Operations Expenditures......			$46,056,742 12.9%	$32,393,956 9.2%			$24,810,968 7.8%
Contractual Services...................... % of Operations Expenditures.....			$11,175,105 3.1%	$14,084,862 4.0%			$14,885,094 4.6%
All Other Operations Items............... % of Operations Expenditures......			$68,075,030 19.0%	$85,836,602 24.4%			$71,831,157 22.5%
GRANTS, REFUNDS, IMPROVEMENTS, FEDERAL TOTAL... % of Total Expenditures...................			$10,269,975 2.8%	$11,749,280 3.2%			$16,728,092 5.0%
Cost of Property and Equipment (See finding 08-1)...................................			$282,435,237	$284,551,330			$274,149,809
SELECTED ACTIVITY MEASURES (Not Examined)		FY 2008			FY 2007	FY 2006
Number of Impaired Driving/Zero Tolerance Citations……………………………………….		11,478			10,177	10,006
Number of Speeding Citations........................		200,597			190,181	158,168
Number of Seatbelt Citations.........................		115,541			114,125	125,230
Number of Forensic Cases Worked in All Disciplines....................................................		112,644			119,045	116,192
Number of Crime Scenes Processed.............. Number of Ethics/Integrity Events Conducted..		3,138 4			3,457 12	4,816 6
	AGENCY DIRECTOR(S)
	During Audit Period: Mr. Larry Trent Currently: Mr. Jon Monken (effective 3/22/09)

Inadequate controls over recording and reporting of property and equipment Undeterminable amount of office furniture did not contain property tags Numerous equipment items not added within 30 days of acquisition C-15 reports did not agree with Department records SCO-560 forms not accurate Contracts approved after start date of contract period Contracts did not include all required content Vouchers approved late

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROL OVER PROPERTY AND EQUIPMENT The Department did not exercise adequate control over the recording and reporting of its property and equipment. We noted the following: · During the examination period the Department of Central Management Services (CMS) purchased the AIG building including all equipment and fixtures. The Department is leasing the AIG building from CMS. The Department was instructed by CMS to add the equipment and fixtures to the Department’s property records and the Department is adding the property as it is being assigned to employees. Therefore, an undeterminable amount of chairs, desks, cubicles, filing cabinets, etc, were found to be missing property tags. The Department also has a security system which does not have a State of Illinois tag or value on the property records. · Nineteen of 40 (48%) equipment items tested, totaling $702,660, were added to the Department’s inventory records between 6 and 143 days late. · One hundred seven equipment items, totaling $175,589, were noted as discrepancies on the annual property certifications for three consecutive years and 36 equipment items, totaling $64,349, were noted as discrepancies on the annual property certifications for five consecutive years. · Department records did not agree with the reported amounts on the C-15. During our sample testing, we noted errors on additions totaling $417, deletions totaling $10,405, and transfers totaling $10,787. · One of 25 (4%) Accounting for Leases-Lessee Form (SCO-560) tested, totaling $733,511, could not be located by the Department. · Two of 25 (8%) SCO-560s tested were not filled out properly. One lease included repairs and maintenance fees within the periodic payment and the other did not have the correct fair value listed. · One of 25 equipment items tested, totaling $15,154, could not be found in the location described on the property records. · The Department purchased new office equipment without checking availability with the State’s furniture surplus. (Finding 1, pages 10-12) This finding was first reported in 2002. We recommended the Department strengthen controls over the recording and reporting of State property by reviewing their inventory and recordkeeping practices to ensure compliance with statutory and regulatory requirements. Department officials concurred with our recommendation and stated the Department transferred the Property Control Unit responsibilities to the Public Safety Shared Services Center (PSSSC) effective October 1, 2008 and will work closely with the PSSSC to ensure the property is added to the inventory system in a timely manner and required reporting to the IOC is completed accurately and in a timely manner. (For the previous Department response, see Digest Footnote #1.) INADEQUATE CONTROLS OVER CONTRACTUAL AGREEMENTS The Department did not maintain adequate controls over its contractual agreements. We noted the following: · Six of 25 (24%) Electronic Data Processing (EDP) contracts reviewed, totaling $1,434,942 were approved between 62 and 117 days late. · Two of 25 (8%) other contracts tested, totaling $5,192,155 were approved between 39 and 162 days late. · The Department did not disclose specifics of an aviation fuel purchase. We could not determine the quantity or cost per gallon of the fuel. In addition, the contract for the fuel purchase did not have the proper language required by State statute for advance payments. · One of 25 (4%) contracts tested, totaling $76,000 did not have the financial interest statement included. (Finding 4, pages 17-18) We recommended the Department ensure all contracts are approved prior to the execution of the contract period and include all required content. Department officials concurred with our recommendation and stated a procedure to address the issue of contracts signed after the start date has been created. INADEQUATE CONTROLS OVER VOUCHER PROESSING The Department did not exercise adequate control over voucher processing. We noted 35 of 334 (10%) vouchers tested, totaling $2,191,560, were approved for payment from 1 to 258 days late. (Finding 08-7, page 23) This finding was first reported in 2004. We recommended the Department comply with the Illinois Administrative Code to ensure vouchers are approved within the required time frame. Department officials concurred with our recommendation and noted the Department continues to struggle with the effects of reduced staffing. In addition, the responsibility of final submission of vouchers to the IOC was transferred to the PSSSC on October 1, 2008 and the Department will work with the PSSSC to ensure the review and approval of vouchers by the PSSSC occurs in a timely manner. (For the previous Department response, see Digest Footnote #2.) OTHER FINDINGS The remaining findings pertain to 1) contract monitoring deficiencies, 2) noncompliance with establishing a pilot program for the Internet Gang Crimes Unit, 3) noncompliance with the Criminal Code of 1961, and 4) noncompliance with grant agreements. We will follow up on these findings during our next examination of the Department. AUDITORS’ OPINION We conducted a compliance examination 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 AUDITORS ASSIGNED The compliance examination was conducted by the Auditor General’s staff. DIGEST FOOTNOTES #1 – PROPERTY CONTROL AND REPORTING WEAKNESSES – Previous Department Response 2006: Concur. Meetings have been held with centralized units responsible for providing the inventory tag numbers and related information to the Property Control Unit. The centralized units have been advised of the need to promptly supply the necessary information to add the equipment to the inventory system. Backlogs in the Property Control Unit have been alleviated with the hiring of a new accountant. In addition, an update to the inventory system will assist in the timely addition of large quantities of like items. The quarterly reports will be completed in accordance with the SAMS manual. Department personnel have worked closely with the Illinois Office of the Comptroller (IOC) to ensure categories are classified correctly. The IOC directed the Department to correct the quarterly reports beginning January 1, 2006. #2 – INADEQUATE CONTROL OVER VOUCHER PROCESSING – Previous Department Response 2006: Concur. The Department has taken the following steps to address this finding: · requested and received permission to fill three vacancies in the Voucher/Revenue Section; · issued a Fiscal Bulletin reminding those who process vouchers of the proper bill date; and · developed a spreadsheet to assist in the calculation of late payment interest. The Department will: · send a memorandum to the Divisions and Command reminding them of the importance of promptly paying bills, and issue a Fiscal Bulletin informing those who process vouchers of the findings.