REPORT DIGEST

FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

Release Date:
February 24, 1999

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

• The Board did not remit checks of $10,000 or more to the State Treasurer on the day of receipt as required by the State Officers and Employees Money Disposition Act.
• The Board did not have adequate records to document the Racing Board staff's use of State-owned automobiles.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (Appropriated Funds)

OPERATIONS TOTAL
% of Total Expenditures

Personal Services
% of Operations Expenditures

Average No. of Employees:
Full-time
Per Diem

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

Contractual Services
% of Operations Expenditures

All Other Operations Items
% of Operations Expenditures

GRANTS - RACE TRACK
IMPROVEMENT FUND
% of Total Expenditures

• Property and Equipment (at cost)

$9,568,596

$6,236,417
65.18%

$3,922,631
62.90%

42
65

$689,289
11.05%

$662,067
10.62%

$962,430
15.43%

$3,332,179
34.82%

$2,209,477

$9,456,003

$6,202,279
65.60%

$4,040,531
65.15%

45
68

$645,610
10.41%

$683,510
11.02%

$832,628
13.42%

$3,253,724
34.40%

$2,241,545

$9,773,885

$5,990,610
61.29%

$3,884,716
64.85%

47
67

$616,087
10.33%

$730,453
12.25%

$759,354
12.74%

$3,783,275
38.82%

$2,093,528

CY 1997

CY 1996

CY 1995

• On Track Handle (millions)
• Intertrack Handle (millions)
• Off Track Handle (millions)
• Total Illinois Handle (millions)
• Post Race Drug Tests
• Positive Tests for Prohibited Drug

$292.2
309.7
578.2
$1,180.1
28,515
41

$328.6
314.2
590.1
$1,232.9
28,839
37

$330.0
306.4
565.6
$1,202.0
30,246
38

The Board did not maintain adequate records and logs for the vehicles owned by the Racing Board

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF TIMELY DEPOSITS TO THE STATE TREASURER

The Board did not timely remit checks of $10,000 or more to the State Treasurer in compliance with the State Officers and Employees Money Disposition Act 30 ILCS 230/2. The Act requires State agencies to pay into the State Treasury any receipt exceeding $10,000 on the same day of actual receipt.

A sample of 17 receipts showed 12 instances where a single item of $10,000 or more was not remitted to the State Treasury on the day of receipt. These twelve instances involved receipts totaling $1.7 million.

The Racing Board's policy was to deposit cash received within 48 hours and Board management stated they were unaware of the requirement to deposit checks of over $10,000 on the same day.

The Board's Executive Director concurred with the finding and recommendation regarding timely deposit and responded that they would comply with the same day deposit requirement for receipts over $10,000. (Finding 98-1, page 10).

INADEQUATE RECORDKEEPING FOR AUTOMOBILES

The Board had ineffective controls over vehicle usage, and three employees did not report commuting use of State vehicles.

The Board did not maintain detailed records or logs to indicate daily use or travel for five Racing Board automobiles considered as pool vehicles. Based on observations and inquiries, three of the five pool cars should have been classified as assigned vehicles since they were used for commuting purposes by certain employees.

Board management believed that it was not necessary to keep detailed records considering the small number of vehicles involved.

We recommended the Board keep detailed records of vehicle use and assignments. Officials at the Racing Board agreed to implement the recommendation immediately. (Finding 98-4, pages 13-14)

OTHER FINDINGS

The remaining findings were less significant and are being given appropriate attention by the Agency. We will review progress toward implementing all recommendations in our next audit.

AUDITORS' OPINION

Our auditors state that the financial statements of the Illinois Racing Board for the two years ended June 30, 1998 are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

McGreal, Johnson, and McGrane were our special assistant auditors for this audit.