State of Illinois

Ninety-Fifth General Assembly

House of Representatives







    WHEREAS, In 2006, Governor Rod Blagojevich promised to



provide State money to Pilgrim Baptist Church (the "Church") in



Chicago to rebuild following a fire; and



    WHEREAS, In March of 2007, a $1 million grant allegedly



intended for the Church was misdirected to the private Loop Lab



School, which had previously occupied space in a Church



building, but is otherwise unaffiliated with it; and



    WHEREAS, The grant was provided by funds appropriated to



the Illinois Department of Commerce and Economic Opportunity;






    WHEREAS, Loop Lab School reportedly used the $1 million



grant from the State of Illinois to purchase space in a



downtown high-rise, but has not yet reopened as a school



facility; and



    WHEREAS, Reportedly, the Governor's Office and Church



officials are negotiating a new grant agreement to provide the



Church with the promised assistance; and



    WHEREAS, In the meantime, no attempts at recovering the



funds misdirected to Loop Lab School have been made; therefore,



be it









the Auditor General is directed to conduct a management audit



of the process involved in the $1 million grant to Loop Lab



School; and be it further



    RESOLVED, That this management audit include, but not be



limited to, the following determinations:



        (1) how and when the funds were promised to the Church,



    and what process was followed, if any;



        (2) how and when the funds were provided to the Loop



    Lab School, and what process was followed, if any;



        (3) what person or persons were involved in these






        (4) what internal controls are present in the grant



    award process at the Illinois Department of Commerce and



    Economic Opportunity, and whether those internal controls



    were followed and are adequate to ensure that grants are



    awarded to proper parties for intended purposes;



        (5) what actions, if any, are being followed to either



    recover the misdirected funds and/or determine the purpose



    for which the funds have been used, and whether they have



    been used for a legitimate purpose; and



        (6) whether a grant to the Church is currently being



    developed and, if so, what controls will be put in place to



    ensure the funds, if provided, are used for their intended



    purpose; and be it further



    RESOLVED, That we urge that the Illinois Department of



Commerce and Economic Opportunity, the Office of the Governor,



and any other entity having information relevant to this audit



cooperate fully and promptly with the Auditor General's Office



in the conduct of this audit; and be it further



    RESOLVED, That the Auditor General commence this audit as



soon as possible and report his findings and recommendations



upon completion in accordance with the provisions of Section



3-14 of the Illinois State Auditing Act.


Adopted by the House Of representatives on May 1, 2008