REPORT DIGEST

DEPARTMENT OF LABOR

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
March 26, 1998

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 encountered problems in obtaining statutory certifications from farm labor contractors.

• The Department did not complete and file statutory reports on agency employment activities.
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• 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
  
  All Other Operations Items
  % of Operations Expenditures
  
  GRANTS TOTAL
  % of Total Expenditures
  
  
  
• Cost of Property and Equipment
  

$5,185,592

$4,414,741
85%
$2,879,480
65%
93

$468,653
11%

$265,647
6%

$800,961
18%

$770,851
15%


$680,669

$4,896,921

$4,178,292
85%
$2,761,421
66%
93

$445,184
11%

$270,483
6%

$701,204
17%

$718,629
15%


$930,328

$4,782,392

$4,046,926
85%
$2,599,937
64%
86

$403,156
10%

$257,769
6%

$786,064
20%

$735,466
15%


$945,749

FY 1997

FY 1996

FY 1995

• Child Labor Violations

• Carnival Rides Inspected

• Wage Claims Filed

• Wage Claims Settled

• Minimum Wage Violations

10,295

1,673

8,429

14,593

7,948

17,044

1,503

8,346

11,564

7,669

13,455

1,574

8,027

14,645

10,459

During Audit Period: Shinae Chun

Currently: Shinae Chun

 

Problems in obtaining farm labor contractors certifications

Failure to comply with the State Employment Records Act

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTRACTORS CERTIFICATIONS NOT OBTAINED

The Department did not comply with the requirements of a statute to monitor the use of farm workers in Illinois. The Illinois Farm Labor Contractor Certification Act requires the Department to issue certificates to farm labor contractors and to monitor the use of farm workers in Illinois. As a part of the application process, the Department is required to investigate the character and competency of the applicant, to review proof of business insurance, and issue certificates. The Department modified its application form to disclose information on the applicant's character and proof of insurance, but did not require applicants to use the new forms. As a result, matters of character and proof of insurance were not obtained, and certificates were issued to farm contractors who may not have met the requirements of the Act. (Finding 2, page 11)

Department officials concurred with the finding and stated they will implement our recommendation to require farm labor contractor applicants to submit updated application forms and the required proof of insurance, when applicable, before issuing certificates to the contractors.

EMPLOYMENT RECORDS NOT COMPLETED OR FILED

The Department did not properly complete reports it was required to submit to the Secretary of State and the Governor as required by the State Employment Records Act. The Department did not report the number and percentage of female, minority, or physically disabled employees for positions filled during the reporting period. In addition, the reports were not filed with the Governor. The Department currently has 93 employees. The Act requires the Department to collect, classify, maintain and report certain information regarding employment statistics for women, disabled and minority groups. Annual reports summarizing information in a prescribed form are required to be filed by January 1 each year for the preceding fiscal year with the Office of the Secretary of State and with the Governor. Department personnel responsible for preparing and filing the report were unaware of the requirements of the Act. (Finding 3, page 12)

We recommended the Department modify its procedures to ensure that information is classified, maintained and reported in accordance with the State Employment Records Act. We further recommended the Department prepare and file corrected annual reports.

Department officials concurred with the finding and stated they will file corrected annual reports with the Secretary of State and the Governor.

OTHER FINDING

The remaining finding was less significant and has been given appropriate attention by Department management. We will review progress toward the implementation of our recommendation in our next audit. Department responses were provided by the Agency Director, Ms. Shinae Chun.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMM:pp

SPECIAL ASSISTANT AUDITORS

Abbott, Phillips & Co. were our Special Assistant Auditors.