State of Illinois

Ninety-Fifth General Assembly

House of Representatives

HOUSE RESOLUTION No. 1190

    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;

and

    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

    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE

NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that

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

    transactions;

        (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