REPORT DIGEST



DEPARTMENT OF NUCLEAR SAFETY



FINANCIAL AND COMPLIANCE AUDIT
(In accordance with the Single Audit act and OMB Circular A-128)
For the Two Years Ended:
June 30, 1997



Summary of Findings:

Total this audit 2
Total last audit 1
Repeated from last audit 0





Release Date:
May 6, 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 of Nuclear Safety contracted with an outside accounting firm to perform auditing and consulting services, several of which could have been performed by an internal auditor at a lower cost.
  • The Department did not have written policies for its compensatory time program for Resident Inspectors.







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


DEPARTMENT OF NUCLEAR SAFETY
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 1997

EXPENDITURE STATISTICS

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 AND REFUNDS TOTAL
% of Total Expenditures

  • Cost of Property and Equipment (thousands)

 

 

 

$44,200,110


$39,637,141
89.7%
$10,238,277
25.8%
220
$2,527,439
6.4%
$2,475,558
6.2%
$24,395,867
61.6%

$4,562,969
10.3%

$24,066

$57,285,584


$52,894,777
92.3%
$9,843,884
18.6%
220
$2,406,150
4.5%
$2,618,314
5.0%
$38,026,429
71.9%

$4,390,807
7.7%

$23,085

$30,629,443


$26,748,503
87.3%
$9,299,229
34.8%
224
$2,451,116
9.1%
$2,407,071
9.0%
$12,591,087
47.1%

$3,880,940
12.7%

$22,974

SELECTED ACTIVITY MEASURES

FY 1997

FY 1996

FY 1995

  • Emergency exercised conducted
  • Nuclear Power Plant inspections
  • Drinking water samples tested
  • Radiation producing devices inspected
  • Mammography facilities inspected
  • Contaminated material shipped from West Chicago (tons)

 

 

3
57
1,251
12,187
436

68,831

3
45
1,148
13,450
440

81,946

3
35
1,475
13,165
436

99,216

AGENCY DIRECTOR(S)
During Audit Period: Thomas W. Ortciger
Currently: Thomas W. Ortciger

 







A full-time internal auditor would have been able to perform several of the tasks contracted to outside parties at approximately one-forth of the contract cost




















In Fiscal Year 1997, inspectors accumulated over 650 hours of compensatory time

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTRACTING INTERNAL AUDITING SERVICES

The Department of Nuclear Safety contracted with an outside accounting firm to perform auditing and consulting services, several of which could have been performed by an internal auditor at a lower cost.

The Department contracted with an outside accounting firm on August 2, 1994 to perform auditing and consulting work. The contract was amended six times to extend or adjust the scope of work. The contractor was paid approximately $185,000 during 1996 and $210,000 during fiscal year 1997 for performing internal auditing work and various other tasks, including oversight of contractors, development of rules and regulations, attendance at seminars and development of systems work. Salary and fringe benefits for a full-time internal auditor would have been about $52,300 a year for fiscal year 1997. This person would have been able to perform several of the tasks contracted to outside parties at approximately one-forth of the contract cost. (Finding 1, page 17)

We recommended the Department consider hiring a full-time internal auditor to perform tasks now done under contract. The Department responded that it would take the recommendation under advisement but stated that given the complexity of the department's programs, an internal auditor with sufficient technical background would be required and that the department would probably expend considerably more per year on a qualified internal auditor than the auditor stated in the finding. We disagreed with the Department's position.

LACK OF COMPENSATORY TIME POLICY FOR RESIDENT INSPECTORS

The Department of Nuclear Safety did not have written policies during the audit period for its compensatory time program for Resident Inspectors.

Resident Inspectors are merit compensatory employees classified as Nuclear Engineer II's (salary range $47,508 to $82,260) and are exempt from the Department of Central Management Services personnel policies. The Department began granting compensatory time to these employees in 1996 but did not have written policies. Officials said for the most part they followed CMS policies. CMS policies state that employees shall not accrue compensatory time in less than one-half hour segments and that compensatory time shall be liquidated at the end of the fiscal year. Nuclear Safety Resident Inspectors accrued and used compensatory time in less than one-half hour increments and carried time over from one fiscal year to another. In fiscal year 1997, inspectors accumulated approximately 652 hours of compensatory time, used about 616 hours, and carried over about 139 hours into FY 1998, including prior year balances. Further, compensatory time was not indicated on official time sheets. (Finding 2, page 19)

We recommended the Department review the need for the Resident Inspector compensatory time program, and if it was found necessary, to adopt written procedures governing the accrual and use of compensatory time. We also recommended the Department require official time records of Resident Inspectors to include compensatory time.

The Department stated it will take the recommendations under advisement but noted that on February 28, 1998, the Nuclear Safety Engineer II personnel voted in favor of inclusion in the union. Timekeeping practices for Resident Inspectors will adhere to the AFSCME bargaining unit contract procedures.

AUDITORS' OPINION

Our auditors state that the financial statements for the Illinois Department of Nuclear Safety as of June 30, 1997 and June 30, 1996 are presented fairly.

_____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Berger, Goldstein & Company.