REPORT DIGEST

OFFICE OF EXECUTIVE INSPECTOR GENERAL

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit 1

Total last audit N/A

Repeated from last audit N/A

Release Date:

April 25, 2006

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also available on

the worldwide web at

http://www.state.il.us/auditor

INTRODUCTION

The Office of Executive Inspector General (Office) was originally created by the Governor’s Executive Order 3 in January 2003. In December 2003, the State Officials and Employees Ethics Act (Act) (5 ILCS 430/et seq.) created the Office of the Executive Inspector General under the Governor as a fully independent office.

The Office was initially financed through the Department of Central Management Services. In FY 04 and FY 05 the Office received a lump sum appropriation for operations.

SYNOPSIS

¨ The Office had inadequate timekeeping procedures.

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

OFFICE OF EXECUTIVE INSPECTOR GENERAL

COMPLIANCE EXAMINATION

For the Two Years Ended June 30, 2005

EXPENDITURE STATISTICS	FY 2005	FY 2004
Total Appropriations...............................................	$5,737,700	$4,126,000
Expenditures from Lump Sums
Personal Services............................................... .........................................................................	$2,463,375	$1,174,750
Contractual Payroll Employees............................	9,580	65,626
State Contribution to State Employees’ Retirement System........................................................	396,942	89,057
State Contributions to Social Security...................	179,580	88,088
State Contributions to Social Security and Medicare – Contractual Employees.................................	733	5,021
Contractual Services...........................................	1,247,679	489,924
Travel................................................................	11,600	17,676
Commodities......................................................	36,425	29,964
Printing..............................................................	17,348	13,363
Equipment..........................................................	163,079	129,714
Telecommunications...........................................	154,575	67,834
Operation of Automotive Equipment....................	19,067	5,535
Efficiency Initiative Payment...............................	2	0
Total..........................................................	$4,699,985	$2,176,552
Cost of Property and Equipment..............................	$319,725	$145,583

SELECTED ACTIVITY MEASURES (Not Examined)
Investigation Activity Submitted to the Executive Ethics Commission	FY 2005	FY 2004
· Number of allegations received...........................	1,145	*
· Number of investigations initiated........................... · Number of investigations concluded....................... · Number of total open investigations........................ · Average Number of Employees.............................	424 402 811 46	* * * 23
* FY2004 figures were not available due to the Commission commencing operations in September 2004

EXECUTIVE INSPECTOR GENERAL

During Examination Period: Zaldwaynaka Scott (4/1/03-6/30/05)

Currently: James Wright (7/1/05-current)

The Office did not have timekeeping procedures until January 2005

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF TIMEKEEPING PROCEDURES

The Office did not comply with the State Officials and Employees Ethics Act (5 ILCS 430/5-5) regarding employee timekeeping requirements.

The Office did not have a policy in place that required all employees to periodically submit time sheets until January 2005. Prior to implementation, the Office’s documents that recorded time for the period were sign in/out sheets, requested time off sheets, leave of absence or other correspondence relating to when an employee was not going to be in the Office during his/her scheduled working hours. In addition, some management personnel did maintain timesheets beginning June 2004.

Although the Office began requiring employees to submit timesheets in January 2005, the Inspector General was not required to submit timesheets. Based on verbal communication from the previous Inspector General, timesheets for the Inspector General were maintained but never forwarded to the human resources department. Under the Act, agency directors and appointees would be considered state employees and would be required to meet the timesheet requirement. (Finding 1, pages 8-9)

We recommended that the Office comply with the State Officials and Employees Ethics Act (5 ILCS 430/5-5) by continuing to require employees to submit monthly timesheets recording time spent on official State business to the nearest quarter hour. We further recommended that the Office seek clarification regarding the requirements for the Inspector General to submit timesheets accounting for the time spent on official State business.

Office officials concurred with this finding and recommendation and stated that as of January, 2005 they have implemented a time keeping policy which requires all employees to accurately document, to the nearest quarter hour, time spent on official state business. The time sheets are now completed on a monthly basis.

The Office’s response to our recommendation was provided by Stan Ryniewski, Chief Financial Officer of the Office of Executive Inspector General, in a letter dated March 27, 2006.

AUDITORS’ OPINION

We conducted a compliance examination of the Office as required by the Illinois State Auditing Act. We have not audited any financial statements of the Office for the purpose of expressing an opinion because the Office does not, nor is it required to, prepare financial statements.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CMD:jr

AUDITORS ASSIGNED

This examination was performed by staff of the Office of the Auditor General.

INTRODUCTION

Expenditures from Lump Sums

LACK OF TIMEKEEPING PROCEDURES

AUDITORS’ OPINION

AUDITORS ASSIGNED