REPORT DIGEST

ILLINOIS LAW ENFORCEMENT TRAINING AND STANDARDS BOARD

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit                        5

Total last audit                        4

Repeated from last audit         2

Release Date:

February 10, 2005

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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Office of the Auditor General

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740 E. Ash Street

Springfield, IL 62703

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

This Report Digest is also available on

the worldwide web at

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SYNOPSIS

¨      The Board did not accurately record receipts to be deposited into the Traffic and Criminal Surcharge Fund.

¨      The Board did not have adequate controls over its contractual service expenditures.

¨      The Board did not maintain sufficient controls over the recording and identification of State-owned equipment.

¨      The Board did not file accounting reports with the Office of the State Comptroller in a timely manner.

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

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

!  Total Expenditures (All Funds) (1).....

$14,248,274

$14,398,054

$14,345,308

     OPERATIONS TOTAL.........................

         % of Total Expenditures................

$4,224,884

29.65%

$3,939,287

27.36%

$3,641,286

25.38%

         Personal Services...........................

           % of Operations Expenditures....

           Average No. of Employees........

$1,119,658

26.50%

27

$1,101,728

27.97%

28

$1,067,845

29.33%

26

         Other Payroll Costs (FICA, Retirement)...................................

           % of Operations Expenditures....

$484,617

11.47%

$452,196

11.48%

$431,742

11.86%

         Contractual Services......................

           % of Operations Expenditures....

$275,847

6.53%

$327,987

8.33%

$340,984

9.36%

         All Other Operations Items......................

           % of Operations Expenditures...............

$2,344,762

55.50%

$2,057,376

52.22%

$1,800,715

49.45%

     GRANTS TOTAL..................................

         % of Total Expenditures................

$10,023,390

70.35%

$10,458,767

72.64%

$10,704,022

74.62%

!  Cost of Property and Equipment.........

$499,977

$517,653

$505,985

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

FY 2002

·         Law Enforcement Officers completing mandated basic training……………………...

1,313

1,278

1,888

·         County Corrections Officers completing mandated basic training……………………...

658

636

586

·         Public Safety Personnel trained utilizing

in-service training delivery system…………...

47,758

53,887

49,773

AGENCY DIRECTOR(S)

     During Examination Period:  Thomas J. Jurkanin, Ph.D.

     Currently:  Thomas J. Jurkanin, Ph.D.

The subsidiary ledger had to be adjusted by $80,170 and $291,957 for fiscal years 2003 and 2004

The Board did not include a deposit of $9,943 on the subsidiary ledger in fiscal year 2003 and had no documentation for deposits totaling $70,227

A contractual employee who performed lobbying and legislative liaison duties did not submit documentation of hours worked or other supporting documentation of work performed

Contracts were not filed with the Comptroller

The C-15s were inaccurate and did not agree to the Board’s supporting documentation

Property items were not properly tagged

Accounting reports were submitted to the Office of the State Comptroller 41 days late

Failure to maintain documentation to support financial reconciliations

INTRODUCTION

     This report presents our State compliance examination of the Board’s operations for the two years ended June 30, 2004.

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

INACCURATE ENTRIES OF TRAFFIC AND CRIMINAL CONVICTION SURCHARGE FUND RECEIPTS

     The Board did not accurately record receipts to be deposited into the Traffic and Criminal Conviction Surcharge Fund (Fund 879).

            Deposits into Fund 879 during fiscal years 2003 and 2004 totaled $14,180,408 and $14,434,835, respectively. The Board records the amounts received from each county in a subsidiary ledger using a software package to track Circuit Clerk receipts. The subsidiary records had to be adjusted by a total of $80,170 and $291,957 for fiscal years 2003 and 2004, respectively, to reconcile the information with the State Comptroller’s records. During fiscal year 2003, the Board did not include a deposit of $9,943 on the subsidiary ledger, and the Board had no Receipt Deposit Transmittals from the Treasurer or other documentation for deposits totaling $70,227.  (Finding 1, pages 9) This was first reported in 2002.

Board personnel stated that deposits not included in the Board’s report were due to oversight. The Board also stated that they will be implementing a new receipt recording system in fiscal year 2005 that will provide better documentation for receipt processing and help to eliminate reporting errors. (For previous Board response, see Digest Footnote #1.)

     We recommended the Board ensure that the Criminal Conviction Surcharge Fund’s receipts are entered accurately in the subsidiary ledger.

     Board officials accepted our recommendation.

INADEQUATE CONTROLS OVER CONTRACTUAL SERVICES EXPENDITURES

The Board did not have adequate controls over its contractual service expenditures.  We noted the following:

·        The Board expended $30,000 during both FY03 and FY04 to a contractual payroll employee who performed lobbying and legislative liaison duties and the Board did not formally monitor the employee’s activities.  In addition, the contractual employee, who did not work in the Board’s office, was not required to submit documentation of the number of hours worked, invoices or other supporting documentation of activities.     

     Board management stated that phone calls and informal meetings kept the Board informed of the employee’s activities.  The Board was not able to provide any documentation of work performed or results achieved.            

·        The Board entered into professional and artistic contracts exceeding $5,000 per fiscal year and did not file them with the State Comptroller’s Office.  The Board expended $17,463 and $17,999 in FY03 and FY04 for professional programming services related to the Board’s existing software and website.   In addition, the Board expended $10,808 and $10,124 in FY03 and FY04 for consulting and auditing services. 

     None of these contracts were filed with the Comptroller’s Office.  Board personnel stated that they did not file contracts because no single expenditure exceeded $5,000.  (Finding 2, pages 10-11)

We recommended the Board require and maintain sufficient documentation to ensure expenditures are reasonable and necessary.  Further, formal monitoring procedures for contractual employees should be established and documented.  In addition, we recommended the Board ensure contractual agreements are filed with the State Comptroller’ Office. 

Board officials accepted our recommendation.

 NEED TO IMPROVE PROPERTY CONTROLS

The Board did not maintain sufficient controls over the recording and identification of State-owned equipment.  We noted the following:

·        The Quarterly Reports of State Property (C-15s) were inaccurate and did not agree to the Board’s supporting documentation.   The FY03 additions were understated by $4,877 and deletions were overstated by $2,505.    The FY04 additions were understated by $2,939, and deletions were understated by $1,182, and the net transfers were overstated by $4,639. 

·        Four of 50 (8%) items tested were not properly tagged.  We noted that three of the items totaling $2,784 had no tag and one item was not tagged and did not appear on the inventory listing.    In addition, one of  5 (20%) equipment vouchers tested totaling $4,152 for a scanner that was purchased in FY03 was not tagged and included on the Board’s inventory records (Finding 3, pages 12-13) This finding was first reported in 2002. 

Board personnel stated that inaccuracies were due to a larger than average number of transactions during FY03 and FY04. The Board added that the tags on the three items may have fallen off and that both the item that was not tagged and the tag that did not agree to the inventory listing were due to oversight.

We recommended the Board implement appropriate procedures to ensure all purchases are recorded accurately on the property control records, tag all property with an identification number, and reconcile C-15s to property records and review for reasonableness prior to submission.

      Board officials accepted our recommendation. (For previous agency response, see Digest Footnote #2.)

UNTIMELY FILING OF ACCOUNTING REPORTS AND LACK OF DOCUMENTATION FOR RECONCILIATIONS

     The Board had procedural deficiencies.  We noted the following:

·        The Board submitted their FY 04 year end accounting reports (GAAP packages) to the State Comptroller’s office 41 days late.   In addition, the Board’s FY 04 accounting report for capital assets (SCO-538) was submitted to the Office of the State Comptroller 60 days late.

     Board personnel stated that a vacancy and additional work from the Governor's Office of Management and Budget contributed to the delays.

·        The Board did not maintain documentation to support the reconciliations of expenditures and revenues to the State Comptroller’s Monthly Appropriation Status Report and the Monthly Revenue Status Report.  

     Board personnel stated that they reported monthly data including expenditures and revenues to the Governor's Office of Management and Budget, and they felt the State Comptroller's reconciliations were duplicative.

     We recommended the Board strengthen controls to ensure accounting reports are timely submitted and retain monthly reconciliations of revenues and expenditures to State Comptroller records. 

     Board officials accepted our recommendations.

OTHER FINDING

     The remaining finding was less significant and is reportedly being given attention by the Board.  We will review the Board's progress towards implementing our recommendations during the next examination period.

     Thomas J. Jurkanin, Ph.D., Executive Director, provided responses to our findings and recommendations.

AUDITORS' OPINION

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

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

ASSIGNED AUDITORS

     The Auditor General’s staff conducted this examination.

DIGEST FOOTNOTES

#1- INNACURATE ENTRIES OF THE TRAFFIC CRIMINAL SURCHARGE FUND RECEIPTS – Previous Agency Response

2002: Accepted.

#2 – PROPERTY CONTROL WEAKNESS – Previous Agency Response

2002: Accepted.