REPORT DIGEST

LEGISLATIVE SPACE NEEDS COMMISSION

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

Summary of Findings:

Release Date:
April 8, 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 Legislative Space Needs Commission failed to obtain a written contract for professional services in excess of $5,000 as required.
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• Total Expenditures (All Funds)

Personal Services
% of Total Expenditures
Average No. of Employees
Other Payroll Costs (FICA, Retirement)
% of Total Expenditures
Contractual Services
% of Total Expenditures
Electronic Data Processing
% of Total Expenditures
Permanent Improvements
% of Total Expenditures
All Other Operations Items
% of Expenditures

• Cost of Property and Equipment

$207,918

$139,696
67.2%
3
$23,289
11.2%
$28,015
13.5%
$7,654
3.7%
$936
.4%
$8,328
4.0%

$67,439

$211,585

$131,846
62.3%
3
$21,560
10.2%
$38,367
18.2%
$6,794
3.2%
$5,354
2.5%
$7,664
3.6%

$67,439

$246,236

$127,674
51.8%
3
$20,860
8.5%
$39,816
16.2%
$9,416
3.8%
$38,909
15.8%
$9.561
3.9%

$63,385

During Audit Period: Mal Hildebrand, Executive Director
Currently: Mal Hildebrand, Executive Director

The Commission failed to obtain a contract for professional services in excess of $5,000

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO OBTAIN CONTRACT

The Legislative Space Needs Commission (Commission) failed to obtain a written contract for professional services in excess of $5,000. Two individual contract obligation documents for the same vendor were completed by the Commission on September 27, 1996. The total amount for the professional services was $9,000. However, the Commission did not reduce the contract to writing.

The Illinois Purchasing Act (30 ILCS 505/9.01) states: "Whenever any State agency contracts for services involving professional and artistic skills and involving an expenditure of more than $5,000 during any fiscal year...a copy of the contract, which must be reduced to writing, shall be filed with the Comptroller". In addition, the Comptroller's Uniform Statewide Accounting System (CUSAS) 15.10.20 prohibits the payment for professional services in excess of $5,000 unless a contract for services has been reduced to writing. The contract is to be prepared before the services are performed and filed with the Comptroller. (Finding 2, page 9)

We recommended the Commission file contracts as required by State law and CUSAS.

Commission officials stated this was not an intentional error and was a result of the Comptroller's Office failing to inform them of the requirement during discussions prior to contracting, and again, at the time of submitting invoice vouchers for payment. Commission officials also stated they have always made it a practice to follow the Purchasing Act to the fullest and regrets this oversight.

OTHER FINDING

The remaining finding is less significant and is being given appropriate attention by the Commission. We will review progress toward implementing the recommendation during the Commission's next audit.

AUDITORS' OPINION

We conducted a compliance audit of the Commission as required by the Illinois State Auditing Act. The Commission had no locally held federal or State trust funds. Consequently, there were no financial statements requiring a financial audit leading to an opinion.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Abbott, Phillips & Co., Ltd. were our special assistant auditors for this audit.