REPORT DIGEST DEPARTMENT OF AGRICULTURE For the Two Years Ended: Summary of Findings: Total this audit 3 Release Date: State of Illinois WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the Report contact: (217)782-6046 or TDD (217) 524-4646 This Report Digest is also available on |
SYNOPSIS
{Revenues, expenditures and supplementary information are summarized on the reverse page.} |
ILLINOIS DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE AUDIT
For The Two Years Ended September 30, 2001
REVENUE AND EXPENDITURE STATISTICS | FY 2001 |
FY 2000 |
FY 1999 |
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Total Revenue Tickets % of Revenue Space Rental:Fair % of Revenue Entry Fees % of Revenue Promotions % of Revenue Total Expenditures (All Funds) (Deficiency) of Revenues Over Expenditures |
$1,102,406 $1,981,171 $(878,765) |
$1,028,531 $1,891,819 $(863,288) |
$1,003,849 $1,878,727 $(874,878) |
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SUPPLEMENTARY INFORMATION | FY 2001 |
FY 2000 |
FY 1999 |
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Employment Statistics (Approximate) Full Time Employees September through May (Temporary) June (Temporary) July through August (Temporary) Selected Activity Measures Pari-mutuel Wagering |
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AGENCY DIRECTOR During Audit Period: Mr. Joseph Hampton |
Payments of $10,522 were not received in accordance with contract terms
Inadequate segregation of duties without compensating controls
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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NEED TO IMPROVE THE COLLECTION PROCESS FOR SPACE RENTALS We noted the following weaknesses in the space rental process during non-fair periods.
Fair officials indicated turnover in personnel had caused some problems with keeping track of collections and that no rules exist pertaining to contract payment dates and terms. (Finding 1, pages 9-10) This finding was first reported in 1997. Department officials accepted our recommendation to establish formal due dates for the amounts owed the State and collect all non-fair space rental fees in a timely manner in accordance with the Illinois State Collections Act of 1986. (For previous Department responses, see Digest footnote). NEED TO IMPROVE INTERNAL CONTROLS The Department did not always employ adequate management oversight controls to compensate for a lack of segregation of duties in its fiscal operations. We noted concentrations of duties in the following areas for which adequate compensating management controls were not present at the DuQuoin Fair:
Good internal control procedures require that adequate management oversight controls must be utilized to compensate for a lack of segregation of duties. A concentration of duties assigned to a single position could result in a loss from fraud or theft. According to management, limited staffing resources caused the lack of segregation of duties, and they are working on changes that would increase management oversight without requiring additional staff. (Finding 3, page 12) Department officials accepted our recommendation to implement adequate compensating management controls or implement procedures to provide for the segregation of duties for DuQuoin fiscal operations. OTHER FINDING The remaining finding is less significant and is reportedly being given attention by Department management. We will review the progress toward implementation of our recommendations during our next audit. Mr. Joseph Hampton, Director, provided the responses to our findings and recommendations. AUDITORS OPINION Our auditors subjected the supplementary financial information of the DuQuoin State Fair to the tests and other auditing procedures applied in our special State financial related audit testing and internal control review. With respect to the items tested no matters were noted that require adjustment to the supplementary information.
_______________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JAF:vh
SPECIAL ASSISTANT AUDITORS Our Special assistant auditors for this audit were Sleeper, Disbrow, Morrison, Tarro & Lively, LLC.
DIGEST FOOTNOTE WEAKNESSES IN SPACE RENTAL PROCEDURES Previous Department Responses 1999: Accepted. The Department will ensure that all current and future contracts are properly dated. The Department does not have the authority to charge late payment penalties, however procedures will be implemented to ensure that all non-fair rental fees are collected in a timely manner. The Department is now maintaining a permanent record of campers and stall rentals. 1997: The Department agrees with this finding. Contracts will be reviewed prior to the event to assure they are properly signed and dated by both parties. The Department has created a form for the lessee to use on which they will document the number of campers and stalls used. Fairground security personnel and Department managers will monitor activities to determine if the information provided is correct. |