REPORT DIGEST

POLLUTION

CONTROL BOARD

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit                         1  

Total last audit                         0

Repeated from last audit          0

Release Date:

March 8, 2005

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:

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 is also available on

the worldwide web at

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

SYNOPSIS

·        The Board made payments for efficiency initiative billings from improper line item appropriations and funds.

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

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

·        Total Expenditures (All Funds)

            Personal Services.....................

               % of Total Expenditures........

               Average No. of Employees....

            Other Payroll Costs (FICA,

            Retirement)..............................

                % of Total Expenditures.......

            Case Management....................

                % of Total Expenditures.......

            Contractual Services.................

               % of Total Expenditures........

            All Other Items.........................

               % of Total Expenditures........

·       Cost of Property and Equipment..

$2,505,820

$1,154,162

46.06%

28

$440,868

17.59%

$694,522

27.72%

$39,448

1.57%

$176,820

7.06%

$913,475

$2,877,734

$1,651,177

57.38%

30

$516,845

17.96%

$590,090

20.51%

$13,085

.45%

$106,537

3.70%

$969,250

$3,207,629

$1,786,981

55.71%

39

$552,466

17.22%

$723,608

22.56%

$21,039

.66%

$123,535

3.85%

$1,004,777

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

FY 2002

·       Cases Handled by Board

·       Regulations Proposed

·       Total Cash Receipts (All Funds)

317

26

$716,263

271

22

$740,535

289

22

$741,485

AGENCY DIRECTOR

During Audit Period:  Claire Manning (7/1/02 - 12/31/02), Thomas Johnson (1/1/03 - 11/30/03), J. Philip Novak (12/1/03 - 6/30/04)

Currently:  J. Philip Novak

Board did not receive guidance or documentation with the billings from CMS

Efficiency initiative payments totaled $70,662

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

PAYMENTS WERE MADE FOR EFFICIENCY INITIATIVE BILLINGS FROM IMPROPER LINE ITEM APPROPRIATIONS AND FUNDS

      The Board made payments for efficiency initiative billings from improper line item appropriations and funds.  Public Act 93-0025, in part, outlines a program for efficiency initiatives to reorganize, restructure, and reengineer the business processes of the State.  The State Finance Act details that the amount designated as savings from efficiency initiatives implemented by the Department of Central Management Services (CMS) shall be paid into the Efficiency Initiatives Revolving Fund.  The Act further requires State agencies to pay these amounts from line item appropriations where cost savings are anticipated to occur.

      The Board did not receive guidance or documentation with the billings from CMS detailing from which line item appropriations savings were anticipated to occur.  Board staff reported that the Board has not experienced any savings from these payments.  The only guidance received was the amount of payments that should be taken from General Revenue Funds versus other funds for the September 2003 billings.  However, the Board, which received no General Revenue Fund appropriations in FY 04, had to make the payments from other funds.

      The Board made payments for billings not from line item appropriations where the cost savings were anticipated to have occurred but from the line items that could afford the payments.  The Board used:

•          $23,000 from the Environmental Protection Permit and Inspection Fund when State law provides that monies in the fund shall be appropriated "for manifest, permit, and inspection activities and for processing requests."

•          $22,162 from the Used Tire Management Fund when State law provides that of the allocation of monies from the fund, "2% shall be available to the Pollution Control Board for administration of its activities relating to used and waste tires."

The Board paid a total of $70,662 for the efficiency initiative from four separate funds.  (Finding 1, pages 9-11)

We recommended the Board only make payments for efficiency initiative billings from line item appropriations where savings would be anticipated to occur.  Further, the Board should seek an explanation from the Department of Central Management Services as to how savings levels were calculated, or otherwise arrived at, and how savings achieved or anticipated impact the Board's budget.

Board officials accepted our finding and recommendation and stated they will make savings payments from appropriations for which it anticipates obtaining savings.  Further, CMS will provide information to the Board on the method by which savings estimates were derived.

Kathryn Griffin, Fiscal Officer, provided the response to our finding and recommendation.

AUDITORS' OPINION

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

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMA:pp

SPECIAL ASSISTANT AUDITORS

     Our special assistant auditors for this engagement were Kyle E. McGinnis, CPA.