REPORT DIGEST

JOINT COMMITTEE ON ADMINISTRATIVE RULES

COMPLIANCE EXAMINATION

For the Two Years Ended: June 30, 2012

Release Date:  November 15, 2012

Summary of Findings:

Total this audit: 2

Total last audit:  1

Repeated from last audit: 1

State of Illinois, Office of the Auditor General

WILLIAM G. HOLLAND, AUDITOR GENERAL

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SYNOPSIS

• The Joint Committee on Administrative Rules did not exercise adequate control over the recording and reporting of its property and equipment.   

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

PROPERTY CONTROL AND REPORTING WEAKNESSES

The Joint Committee on Administrative Rules (JCAR) did not exercise adequate control over the recording and reporting of its property and equipment.  We noted the following:

• One of two Annual Real Property Utilization reports was not filed with the Department of Central Management Services.

• Three equipment items, totaling $546, were recorded with incorrect voucher numbers and purchase dates on JCARS’s property records.

• Four equipment additions, totaling $666, were not added to the property records with 30 days of acquisition.  In addition, one equipment item, totaling $120 was not recorded as of the time of our testing.

• Two of 10 equipment deletions tested, totaling $5,278 were not deleted from JCAR’s property records within 30 days of deletion.

• Seven equipment additions, totaling $837 were recorded for an incorrect amount on the property records.

• JCAR was unable to locate all property.  (Finding 1, pages 9-10)   This finding was first reported in 2006.

We recommended JCAR strengthen internal controls over equipment and ensure all equipment items are accurately and timely recorded on JCAR’s property records.  In addition, we recommended JCAR file an Annual Real Property Utilization report by July 31 of each year.   

JCAR officials agreed with our finding and stated they will strive to complete reports on time in the future and ensure that all property is timely recorded.  (For the previous JCAR response, see Digest Footnote #1.)

OTHER FINDING

The remaining finding pertains to failure to comply with the Identity Protection Act.  We will follow up on these findings during our next examination of the Joint Committee on Administrative Rules.

AUDITORS’ OPINION

We conducted a compliance examination of JCAR as required by the Illinois State Auditing Act.  JCAR has no funds that require an audit leading to an opinion of financial statements. 

WILLIAM G. HOLLAND

Auditor General

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AUDITORS ASSIGNED:

This examination was performed by the Office of the Auditor General’s staff.

DIGEST FOOTNOTES

#1 – PROPERTY CONTROL AND REPORTING WEAKNESSES – Previous JCAR Response

2009:  JCAR accepts the recommendation and staff will endeavor to be more accurate in the recording of inventory in the future and in the preparation of reports submitted to the State Comptroller.  All property records have been corrected.