REPORT DIGEST

 

OFFICE OF THE STATE TREASURER

NONFISCAL OFFICER RESPONSIBILITIES

 

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit                          2

Total last audit                          2

Repeated from last audit           1

 

Release Date:

March 30, 2006 

 

 

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 Office of the State Treasurer did not comply with Office policies and procedures regarding performance appraisals and compensatory time.

 

¨   The Office of the State Treasurer did not publish the Investment Policy covering the investment of moneys in the College Savings Pool in either a Springfield or Chicago newspaper.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page


 

 

OFFICE OF THE STATE TREASURER - NONFISCAL OFFICER RESPONSIBILITIES

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2005

EXPENDITURE INFORMATION AND STATISTICS

FY 2005

FY 2004

FY 2003

TOTAL EXPENDITURES (All Funds)...........................................

 

APPROPRIATED EXPENDITURES..............................................

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

General Revenue Fund – 001 & State Pension Fund – 054

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

        Employee Retirement - Contributions Paid by Employer........

        State Contribution to State Employees' Retirement System...           System...............................................................................

        State Contribution to Social Security.......................................

        Group Insurance..........................................................................

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

        Travel............................................................................................

        Commodities................................................................................

        Printing.........................................................................................

        Equipment....................................................................................

        Electronic Data Processing........................................................

        Telecommunications...................................................................

        Operation of Auto Equipment...................................................

        Inspector General........................................................................

        Refunds of Estate Tax & Accrued Interest thereon..............

        Refunds of Accrued Interest on Protested Taxes..................

                Total Expenditures – General Revenue & State Pension

General Obligation Bond Fund – 101

        Payment of Principal...................................................................

        Payment of Interest.....................................................................

        Payments to Refund General Obligation Bonds.....................

                Total Expenditures – General Obligation Bond Fund...

General Obligation Bond Rebate Fund – 107

       Total Payments for Arbitrage Rebate.......................................

Bank Service Trust Fund – 373

        Total Payments for Banking Services......................................

Capital Litigation Trust Fund – 614

        Total Payments of Capital Litigation .......................................

Matured Bond and Coupon Fund – 625

        Total Payments of Matured Bonds and Interest....................

Estate Tax Collections Distributive Fund – 815

        Total Payments to Counties......................................................

 

$3,355,308,047

 

$3,283,980,477

98%

 

$6,808,896

261,558

1,094,573

593,859

602,363

3,718,533

134,364

80,574

18,739

70,701

1,930,677

177,602

10,873

196,081

8,998,967

       666,309

$25,364,669

 

$2,153,260,524

1,071,877,490

                       0

$3,225,138,014

 

$0

 

$6,389,251

 

$8,292,752

 

$603,775

 

$18,192,016

$3,758,592,527

 

$3,673,930,496

98%

 

$6,670,688

263,074

716,331

571,612

478,853

3,818,126

136,869

69,445

35,380

70,833

2,059,818

198,753

15,597

0

6,987,762

    1,711,827

$23,804,968

 

$1,923,668,657

1,019,833,688

      78,667,844

$3,622,170,189

 

$0

 

$5,946,784

 

$9,000,041

 

$172,313

 

$12,836,201

$2,759,584,518

 

$2,672,463,288

97%

 

$7,508,329

284,839

775,178

655,871

469,804

3,804,648

245,434

139,428

33,841

70,691

1,950,463

247,498

15,572

0

6,551,784

   1,522,328

$24,275,708

 

$1,520,218,501

474,937,865

618,978,974

$2,614,135,340

 

$444,893

 

$6,294,686

 

$13,317,061

 

$148,781

 

$13,846,819

UNAPPROPRIATED EXPENDITURES.........................................

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

IPTIP Administrative Trust Fund - 195...........................................

Protest Fund - 401...............................................................................

Unclaimed Property Trust Fund - 482..............................................

Municipal Economic Development Fund – 650.............................

College Savings Plan Administration Fund – 668.........................

 

Cost of Property and Equipment......................................................

 

$71,327,570

2%

$2,660,128

$19,137,402

$48,789,699

$214,559

$525,782

 

$3,694,505

$84,662,031

2%

$2,693,963

$28,409,628

$52,699,682

$356,489

$502,269

 

$3,478,883

$87,121,230

3%

$3,236,625

$29,422,930

$53,822,436

$298,066

$341,173

 

$3,428,432

SELECTED ACTIVITY MEASURERS (Not examined)

FY 2005

FY 2004

FY 2003

Number of Warrants Issued..............................................................

Number of Warrants Paid..................................................................

Amount of Unclaimed Property Remittances Received................

Number of Unclaimed Property Claims Paid...................................

Amount of Unclaimed Property Claims Paid..................................

8,460,917

8,399,938

$160,372,123

40,138

$68,337,495

9,108,478

8,966,741

$184,861,872

26,490

$55,670,636

10,106,416

10,035,458

$127,562,367

25,387

$53,829,481

STATE TREASURER

During Audit Period:  Honorable Judy Baar Topinka

Currently:  Honorable Judy Baar Topinka

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office policies and procedures governing performance appraisals and use of overtime and compensatory were not followed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Investment policy not published in newspaper as required by law

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

NONCOMPLIANCE WITH OFFICE POLICIES AND PROCEDURES

 

      The Office did not conduct performance appraisals and did not comply with compensatory time policies and procedures as required by the Treasurer’s Office Employee Handbook.

 

      We noted no performance appraisals were on file for 56 of 100 (56%) employees tested.  We also noted performance appraisals were not performed timely for 14 of 100 (14%) employees.  The appraisals ranged from 103 to 360 days late.  Lastly, we noted 11 of 50 (22%) employees tested exceeded the time allowed for using compensatory time earned by not using time in excess of 21 hours within 60 days of the end of the month in which it was accrued.  Excess compensatory time ranged between 3.42 and 73.15 hours for those employees. (Finding 1, pages 9-10)  

 

      We recommended the Office ensure performance appraisals are conducted on a timely basis and that its employees comply with its compensation time policies and procedures.  We also recommended the Office revise its policies and procedures if the Office determines these policies and procedures are not longer feasible or efficient.  

 

      The Treasurer accepted the recommendation and stated managers will be instructed to catch up on all past due performance appraisals and complete all future performance appraisals on time.  In addition, the Treasurer stated employees with compensatory time in excess of 21 hours will be either paid for the excess time or instructed to use it by January 31, 2006, and after that date, employees who fail to follow the policy will lose the excess time.  

 

 

FAILURE TO COMPLY WITH THE STATE TREASURER ACT

 

      The Office did not publish the Investment Policy Statement covering the investment of moneys in the College Savings Pool in either a Springfield or Chicago newspaper since 2002.  The State Treasurer Act (15 ILCS 505/16.5) requires the Investment Policy Statement to be published at least once each year in at least one newspaper of general circulation in both Springfield and Chicago.  (Finding 2, page 11)

     

      We recommended the Office publish the College Savings Pool Investment Policy Statement on an annual basis as required by statute.

 

      The Treasurer accepted the recommendation and stated that due to increasing costs of newspaper publication and the expansion of the internet, it is the Treasurer’s intention to amend the legislation to remove the annual publication requirement.  However, the Treasurer’s Office will comply with the requirement pending the amendment of the legislation.

 

      Ms. Barbara Ringler, Chief Internal Auditor provided the responses to our recommendations.

 

AUDITORS' OPINION

 

      Our special assistant auditors conducted a compliance examination of the Treasurer’s Nonfiscal Officer Responsibilities as required by the Illinois State Auditing Act.  We have not audited any financial statements of the Treasurer’s Nonfiscal Officer Responsibilities for the purpose of expressing an opinion on financial statements. 

 

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

 

SPECIAL ASSISTANT AUDITORS

     

      Our special assistant auditors on this examination were Crowe Chizek and Company LLC.