REPORT DIGEST

DEPARTMENT OF STATE POLICE

FINANCIAL AND COMPLIANCE AUDIT
(In accordance with the Single Audit Act of 1984 and OMB Circular A-128)
For the Two Years Ended:
June 30, 1996

Summary of Findings:

Release Date:

April 3, 1997

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 Department has not established adequate computer controls over Local Area Networks. The Department has an investment of about $2 million in this computer hardware and software.

• The Department does not have adequate procedures to track fees generated by crime laboratory analysis services to ensure all fees owed are remitted or are remitted on a timely basis.

• The Department maintains inventories at levels approximately twice annual usage, which is not in compliance with the Illinois Purchasing Act.

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

FY 1996

FY 1995

FY 1994

• Total Expenditures (All Funds)

$233,328,902

$222,956,161

$204,771,756

$223,030,048
95.6%

$212,601,911
95.4%

$194,272,673
94.9%

$135,221,377
60.6%
3,353

$126,226,798
59.4%
3,277

$120,055,479
61.8%
3,196

$16,845,455
7.6%

$23,847,718
11.2%

$22,793,091
11.7%

$12,874,420
5.8%

$12,118,199
5.7%

$11,933,325
6.2%

$58,088,796
26.0%

$50,409,196
23.7%

$39,490,778
20.3%

$10,298,854
4.4%

$10,354,250
4.6%

$10,499,083
5.1%

• Cost of Property and Equipment

$163,597,972

$150,060,274

$143,879,976

FY 1996

FY 1995

FY 1994

• Sworn Officers
• IL Vehicle Code Citations
• Motorist Assists
• Arrests
• Cases Opened
• Convictions

1,825
324,108
137,765
24,755
10,273
4,849

1,789
337,159
133,305
22,312
8,571
5,388

1,762
350,255
141,262
21,506
8,076
5,608

During Audit Period: Terrance Gainer
Currently: Terrance Gainer

The Department has invested about $2 million in computer hardware and software and approximately 800 employees have access to 75 computer networks throughout the State

Fees were $191,221 in fiscal year 1995 and $220,774 in fiscal year 1996

The Circuit Clerk Audit Guideline Committee recommended that annual audits of Circuit Clerks include reviews of remittances to State and local governments

As inventory levels increase, the Department is susceptible to a higher level of risk of loss due to theft, obsolescence, or damage

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE COMPUTER CONTROLS OVER LOCAL AREA NETWORKS (LANS)

The Department has not established adequate computer controls over local area networks. The Department of State Police has an investment of approximately $2 million in LAN hardware and software. Approximately 800 employees have access to 75 networks located throughout the State. However, formal policies and procedures for coordinating and monitoring LANs do not exist. Rather, individual Departmental units are solely responsible for maintaining and controlling individual local networks. We found that some of the network's security features were not activated; policies and procedures for the selection, installation, and maintenance were lacking; and no security awareness program existed. (Finding 5, page14) This finding has been repeated since 1992.

We recommended the Department formally adopt policies and procedures to help ensure that LANs are adequately and consistently controlled throughout the Department. The Department concurred and stated they planned to implement security policies by July 1, 1997. (For previous Department responses, see Digest footnote 1.)

INADEQUATE TRACKING OF CRIME LABORATORY ANALYSIS FEES

The Department does not have adequate procedures to track fees generated by crime laboratory analysis services to ensure all fees owed are remitted or are remitted on a timely basis. The criminal laboratory analysis fee is imposed on persons found guilty of certain criminal offenses which necessitate submission of laboratory reports into evidence. The fee is collected by Circuit Clerks and remitted to the Department. Crime laboratory analysis fees were $191,221 in fiscal year 1995 and $220,774 in fiscal year 1996.

The Department indicated that tracking the fees was difficult because they did not control evidence and did not levy or collect the fee. However, not tracking fees could result in an understatement of accounts receivable and in lost revenue to the State. (Finding 6, page 15) This finding has been repeated since 1992.

We also note that the Department of State Police receives other fees through Circuit Clerks, including overweight truck fines, drug related fines, and other miscellaneous amounts. A June, 1996 report of the Circuit Clerk Audit Guideline Committee recommended that annual audits of Circuit Clerks include reviews of remittances submitted to State and local governments. If and when this recommendation becomes law, this would help State agencies track fees but would not relieve them of their responsibilities to monitor receipts.

We recommended the Department establish a process to track laboratory reports through the courts to ensure fees due are being remitted, or develop other procedures for determining compliance. We suggested tracking laboratory fees could be done by using analytical review procedures.

The Department concurred with our recommendation and stated that it will make efforts to monitor trends or fluctuations and will address these when found. (For previous Departmental responses, see Digest footnote 2.)

EXCESS INVENTORY LEVELS

The Department of State Police maintains inventories at several locations which consists of uniforms and various operating supplies. At June 30, 1996 the inventory value was about $3.4 million. These inventory levels were approximately twice the annual usage, which is not in compliance with the Illinois Purchase Act.

According to the Department, uniforms, which comprise a large portion of the inventory, must be ordered in large quantities and carried in a variety of sizes. However, we note that the Department is susceptible to a higher level of risk of loss due to theft, obsolescence or damage as inventory levels increase. Additionally, the existing inventory system is not capable of establishing automated restocking points, thus the supply section is required to assess inventory needs using a manual system. (Finding 7, page 16)

We recommended the Department reduce existing inventory levels and establish minimum restocking levels. Also, the Department should consider developing a more cost effective approach for the inventory system.

The Department concurred and stated that their Information Services Bureau is working on a project to more efficiently utilize the Uniform Inventory System.

OTHER FINDINGS

The remaining findings are less significant and are being given appropriate attention by the Agency. We will review its progress toward implementing these recommendations in our next audit.

AUDITORS' OPINION

Our auditors state that the Agency's financial statements for the two years ending June 30, 1996 are fairly presented.

 

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Deloitte & Touche, LLP.

DIGEST FOOTNOTES

#1: INADEQUATE CONTROL OVER LOCAL AREA NETWORKS (LANS) - Previous Agency Responses.

1994: "We concur in part. More work needs to be done on LAN security and control. However, the recommendations made by the audit are contrary to those implemented on the mainframe. The LAN and mainframe require similar controls and should be consistent with each other. The need for disaster recovery for LANs is recognized and will be addressed. While ISB [Information Services Bureau] does not currently have a separate security awareness class, security is emphasized in all of the Information Center training classes." (The response then goes on to address the recommendations made in more detail.)

1992: "We concur. ISB will coordinate and manage local area networks (LANs) for ISP. The responsibility will include controlling, installing and supporting LANs as well as security functions." (The response provides further details on plans to implement the recommendations.)

#2: INADEQUATE TRACKING OF CRIME LABORATORY ANALYSIS FEES - Previous Agency Responses.

1994: "We concur in part. The Bureau of Forensic Sciences has contacted the Chicago Police Department Crime Laboratory, the DuPage County sheriff's Crime Laboratory and the Northern Illinois Crime Laboratory. Each of these labs also receive drug fees from the circuit clerks. None of these labs have been able to adequately track the crime lab analysis fees. Letters are sent to the state's attorneys to request better compliance with the statute. A monthly report is sent to each lab director which lists the counties who have submitted fees and the dollar amounts which were remitted. The lab director then attempts to make a general comparison between the number of chemistry cases that the lab analyzed by county and the number of fees remitted by that county. Because of the time frames involved between the time the case has been worked and the time it is adjudicated, this process cannot be an exact reconciliation. In addition, a percentage of the cases that are analyzed end up in the court system with a fee being assessed. It is our opinion that the burden that would be placed on the department to adequately monitor this process would significantly reduce the fee's benefits, thus defeating the purpose of the fee. Additionally, ISP has no statutory authority to audit the courts with reference to the crime lab analysis fee. Again, as in the last audit, we recommend that the Auditor General review this issue on a statewide basis encompassing all state agencies and funds due the state from the circuit clerks."

An Auditor's note to this response stated that the Auditor General had conducted a management audit into the State's collection of money from Circuit Clerks and recommended that all 10 State Agencies receiving such fees develop procedures to monitor collections make by the Clerks. The State Police did not provide a response to the Management Audit but all the Agencies that did respond, including the Office of the Attorney General, the Department of Conservation, the Department of Public Aid, and the State Board of Education agreed with and accepted this recommendation.

1992: "We concur in part. The department does agree that a process should be developed to track the fees generated by the crime laboratory services. However, it is nearly impossible to track the fee from the point of laboratory analysis through the criminal justice system." (The response goes on to cite procedures and difficulties similar to the 1994 response.)