REPORT DIGEST

 

OFFICE OF THE STATE TREASURER

NONFISCAL OFFICER RESPONSIBILITIES

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

 

Summary of Findings:

Total this audit                  2

Total last audit                  2

Repeated from last audit   1

 

Release Date:

March 6, 2008

 

 

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 and the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

·        The Office paid payroll expenditures from an incorrect appropriation. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{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, 2007

 

EXPENDITURE INFORMATION AND STATISTICS

FY 2007

FY 2006

FY 2005

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...

        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 Escrow Agent.......................................................

                Total Expenditures – General Obligation Bond Fund...

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......................................................

$3,102,221,669

 

$2,994,321,165

97%

 

$7,224,796

228,854

833,079

636,143

619,946

3,826,462

158,632

148,484

50,495

94,072

1,917,923

163,831

14,107

231,327

8,999,997

    3,742,219

$28,890,367

 

$1,477,592,634

1,115,485,186

    341,848,915

$2,934,926,735

 

$6,025,454

 

$8,339,327

 

$124,394

 

$16,014,888

$3,083,795,358

 

$3,019,453,634

98%

 

$6,712,764

246,756

523,255

594,740

632,195

3,397,769

103,567

73,901

19,010

17,320

1,568,638

154,754

15,154

219,134

8,742,000

       455,765

$23,476,722

 

$1,565,449,887

1,113,124,277

     285,777,733

$2,964,351,897

 

$6,583,036

 

$9,064,110

 

$181,387

 

$15,796,482

$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

 

$6,389,251

 

$8,292,752

 

$603,775

 

$18,192,016

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......................................................

$107,900,504

3%

$3,076,638

$24,739,761

$79,069,494

$365,848

$648,763

 

$3,292,577

$64,341,724

2%

$2,936,784

$6,572,078

$53,895,426

$304,932

$632,504

 

$3,321,462

$71,327,570

2%

$2,660,128

$19,137,402

$48,789,699

$214,559

$525,782

 

$3,694,505

SELECTED ACTIVITY MEASURERS (Not examined)

FY 2007

FY 2006

FY 2005

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..................................

8,316,448

8,144,057

$149,436,234

49,185

$92,193,969

8,300,238

8,179,792

$265,302,143

40,125

$84,010,738

8,460,917

8,399,938

$160,372,123

40,138

$68,337,495

STATE TREASURER

During Audit Period:  Honorable Judy Baar Topinka (eff. 7-1-06 – 1-8-07), Honorable Alexi Giannoulias (eff. 1-8-07)

Currently:  Honorable Alexi Giannoulias
 

 

 

 

 

 

 

 

 

 

 

 


Payments to Interns

 

 

 

 

 

 

 


Payments to Employees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

EMPLOYEES PAID FROM INCORRECT APPROPRIATION

 

      The Office paid payroll expenditures from an incorrect appropriation.  During our testing of payroll we noted the following:

 

·        The Office utilized interns during fiscal years 2007 and 2006 to travel to county fairs and other events for unclaimed property duties and therefore paid the interns out of the State Pensions Fund.  A significant portion of the interns’ time was spent on other Office duties not for the administration of the Uniform Disposition of Unclaimed Property Act and therefore a majority of the interns were inappropriately paid out of the State Pensions Fund.

 

·        7 of 50 (14%) employees tested were charged to an incorrect appropriation and/or payroll code based on their job description and duties and the Office did not maintain an adequate method for allocation of payroll expenditures.  The approximate amount of expenditures incorrectly charged during 2007 and 2006 was $207,000 and $191,000, respectively.  (Finding 1, pages 9-10)

 

      We recommended the Office develop a cost allocation plan to ensure employees are coded to the proper appropriation and payroll code to ensure employees are paid from funds representative of Office duties.  In addition, the allocation method should be periodically tested to ensure expenditures are reflective of the services being performed.

 

      Treasurer officials agreed with the finding and recommendation, noting that the exceptions covered two different Treasurer’s administrations.  Adjustments were made to the respective payrolls of the employees cited by the auditors in order to reflect their recommended payroll allocations.  Prospectively, the Treasurer will develop a cost allocation plan. 

 

 

 

OTHER FINDING

 

      The remaining finding pertains to conducting employee performance appraisals and compliance with ethics policies and procedures.  We will review the Office of the Treasurer’s progress toward the implementation of our recommendation in our next examination.

     

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 because the Treasurer’s Nonfiscal Officer Responsibilities does not, nor is it required to, prepare 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.