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REPORT DIGEST LEGISLATIVE ETHICS COMMISSION COMPLIANCE
EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this audit 2 Total last audit 0 Repeated from last audit 0 Release Date: January 29, 2009
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General
(217) 782-6046 or TTY (888)
261-2887 This Report Digest and Full
Report are also available on the worldwide web at http://www.auditor.illinois.gov
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SYNOPSIS
· The Legislative Ethics Commission authorized personnel from other State agencies to approve vouchers as the agency head without entering into an intergovernmental contract. · The Legislative Ethics Commission had an inadequate segregation of duties in the areas of expenditure control and State property. {Expenditures and Activity Measures are summarized on the reverse page.} |
LEGISLATIVE ETHICS COMMISSION
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EXPENDITURE STATISTICS |
FY 2008 |
FY 2007 |
FY 2006 |
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Total Appropriations............................................... |
$328,900 |
$328,900 |
$315,000 |
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Expenditures |
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Personal Services...............................................
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$67,514 |
$65,291 |
$57,595 |
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Employee
Retirement Contributions Paid by Employer....................................................... |
$0 |
$0 |
$87 |
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State
Contribution to State Employees’ Retirement System.......................................................... |
$5,224 |
$3,492 |
$3,503 |
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State Contributions to
Social Security................... |
$5,147 |
$4,976 |
$4,400 |
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Contractual Services........................................... |
$814 |
$776 |
$1,356 |
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Travel................................................................ |
$1,343 |
$1,592 |
$1,489 |
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Commodities...................................................... |
$240 |
$237 |
$30 |
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Equipment.......................................................... |
$0 |
$4,239 |
$0 |
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Telecommunications........................................... |
$2,936 |
$2,676 |
$3,055 |
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Total Expenditures....................................... |
$83,218 |
$83,279 |
$71,515 |
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Cost of Property and Equipment............................. |
11,074 |
16,280 |
$16,280 |
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Note: The
Commission shared an appropriation with the Office of the Legislative
Inspector General during FY07 and FY08.
The above expenditure amounts include both the Office of the
Legislative Inspector General’s expenditures and the Commission’s
expenditures |
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SELECTED ACTIVITY MEASURES (Not Examined) |
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Investigation Activity Reports Submitted to the
Commission by the Office of the Legislative Inspector General |
FY2008 |
FY2007 |
FY2006 |
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·
Number of allegations received ·
Number of investigations initiated ·
Number of investigations concluded ·
Number of total open investigations |
19 19 17 2 |
11 11 11 0 |
10 10 10 0 |
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There
were no pleadings filed in FY07 and FY 08 with the Commission by the
Legislative Inspector General.
Accordingly, the Commission had not conducted an administrative
hearing or given a ruling. |
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DIRECTOR OF THE LEGISLATIVE ETHICS COMMISSION |
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During the audit period: Kevin Steelman Currently: Kevin
Steelman |
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Other State
agencies given voucher approval without intergovernmental contract
Duties not
segregated |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS INAPPROPRIATE SIGNATURE AUTHORITY DESIGNATION The Legislative Ethics Commission (Commission) authorized personnel from other State agencies to approve vouchers as the agency head without entering into an intergovernmental contract. We noted one individual had signature authority to approve travel, payroll and invoice vouchers. Another individual had signature authority to approve payroll vouchers. (Finding 1, pages 8-9) We recommended the Commission retain all voucher signature authority or comply with the Intergovernmental Cooperation Act by entering into an intergovernmental contract. Commission
personnel accepted the finding and stated that the signature authority was delegated to
administrative staff of both Senate and House fiscal units to enable
continuity of payroll during periods of the Executive Director’s absence.
This was an infrequent event, but provides a mechanism for continued fiscal
activity. Some of the authority was authorized when the agencies were
initially created. The LEC will seek an interagency agreement to formalize
this redundancy. INADEQUATE SEGREGATION OF DUTIES The Legislative Ethics Commission (Commission) had an inadequate segregation of duties in the areas of expenditure control and State property. We noted the following inadequate segregation of duties: · One person had authority to approve vouchers, maintain accounting records and perform monthly expenditure reconciliations. · One person had authority to approve all property purchases, tag all inventory, maintain the property records and complete the quarterly reports of State property. (Finding 2, page 10) We recommended the Commission maintain effective internal control over the record keeping and accounting duties concerned with expenditure and property control. Commission personnel accepted the finding and stated a segregation of duties is difficult to undertake in a single staff office. The LEC will work to provide routine expenditure updates to the LEC as a way of enhancing financial oversight. AUDITORS’ OPINION We conducted a compliance examination of the Legislative
Ethics Commission as required by the Illinois State Auditing Act. We have not audited any financial
statements of the Commission 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 AUDITORS ASSIGNED This examination was performed by staff of the Office of the Auditor General. |
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