REPORT
DIGEST

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

Release Date:
April 15, 1999

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 Agency did not reduce all contracts to writing before having services performed. Nine of out seventeen vouchers tested (or 52 percent) had services performed before the related contracts were signed. Total value for these exceptions was $420,949.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (All Funds)

OPERATIONS TOTAL
% of TOTAL Expenditures

Personal Services
% of Operations Expenditures
Average No. of Employees

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

Contractual Services
% of Operations Expenditures

Electronic Data Processing
% of Operations Expenditures

All Other Operations Items
% of Operations Expenditures

General Assembly Computer Equipment
Revolving Fund
% of Total Expenditures

• Cost of Property and Equipment

$3,936,294

$3,614,134
91.8%

$1,105,330
30.6%
30

$195,489
5.4%

$454,854
12.6%

$908,357
25.1%

$950,104
26.3%

$322,160
8.2%

$4,740,481

$3,450,467

$3,138,473
90.9%

$890,957
28.4%
24

$143,426
4.6%

$436,276
13.9%

$1,036,270
33.0%

$ 631,544
20.1%

$311,994
9.1%

$5,128,650

$3,439,350

$3,079,406
89.5%

$963,773
31.3%
24

$150,377
4.9%

$367,807
11.9%

$1,003,452
32.6%

$593,997
19.3%

$359,944
10.5%

$5,272,289

FY 1998

FY 1997

FY 1996

• Service Charges to Subscribers
• Equipment Purchases

$157,925
$1,750,847

$215,550
$920,951

$161,825
$1,844,393

The Agency did not reduce all contracts to writing before having services performed

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

SERVICES PERFORMED BEFORE CONTRACTS SIGNED

The Agency did not reduce all contracts to writing before having services performed. Nine out of seventeen vouchers tested (or 52 percent) had services performed before the related contracts were signed. These contracts were for renewal of maintenance or servicing agreements of EDP equipment and copy machines. Total value for these exceptions was $420,949. (Finding 98-1, page 8.)

Agency management accepted our recommendation to approve all contracts prior to services being performed.

OTHER FINDING

The remaining finding is considered less significant and has been given appropriate attention by the Agency. We will review progress towards the implementation of our recommendations in our next audit.

Responses were provided by the Agency's Executive Director, Mr. John T. Hatcher.

AUDITORS' OPINION

We conducted a compliance audit of the Legislative Information System as required by the Illinois State Auditing Act. The Legislative Information System has no locally held, federal or state trust funds. Consequently, there are no financial statements requiring a financial opinion.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JHL:pp

SPECIAL ASSISTANT AUDITORS

The accounting firm of Smith & Smith, P.C. served as our special assistant auditors for the engagement.