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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INADEQUATE SUPERVISION OF FAIR PARKING
DuQuoin State Fair
(Fair) parking supervisors did not adequately supervise parking on the
fairgrounds.
The Fair sells
parking to the general public during the DuQuoin State Fair each year. In 2004 and 2005, revenue generated from
parking admissions totaled $204,003 and $212,178, respectively. During our testing of 2004 Fair parking
revenue we noted 42 of 279 vehicles (15%) were either missing parking passes
(37), had expired passes (1) or had the wrong pass for the lot (4). During our testing of 2005 parking
revenue we noted that 33 of 444 vehicles (7%) had no visible parking
passes. (Finding 1, page 8)
We recommended the
Department enforce the display of parking passes in vehicles by towing
vehicles. Further, the Department
should consistently apply its parking rules and enhance its supervision over
Fairgrounds parking.
Department
officials agreed with our recommendation and stated they will review their
parking policies and procedures, amend them if necessary, and enforce them.
VENDORS
DID NOT PROVIDE PROOF OF INSURANCE
The Department did not obtain proof of insurance
from DuQuoin State Fair vendors as required by their contracts.
In 2004 the
Department did not obtain proof of insurance from 2 of 25 vendors (8%) until
23 and 85 days after the Fair ended.
In 2005, the Department did not obtain proof of insurance from 17 of
30 vendors (57%) as required by the terms of their contract. (Finding 2, page 9)
We recommended the Department obtain proof
of insurance from vendors when required prior to entering into the contract
with the vendor.
Department officials agreed with the
finding and indicated that it will require that proof of insurance be
provided prior to the assignment of space and setup by the vendor.
INADEQUATE CONTROL OF CAMPING REVENUES AND PERMITS
The Department did not maintain adequate
controls over camping revenues and permits at the DuQuoin State Fair.
The Department rents campsites at the
fairgrounds during the time of the DuQuoin State Fair (Fair). Camping revenues for the Fair in 2004 and
2005 were $47,266 and $55,030, respectively.
During our sample testing of 20 camping
permits in 2004, we noted 3 instances (15%) that the camper underpaid one
night totaling $36.
During our sample of 30 camping permits in
2005, we noted the following:
·
7 instances
that camper underpaid one night totaling $105;
·
4
discrepancies in arrival date written on permit and receipt totaling $60;
·
1 camper
occupied two spots but only paid for one space resulting in underpayment of
$120;
·
7 campers
displayed a pink permit, which according to Fair officials were not
distributed, resulting in underpayment of $105;
·
5 camping
permits were blank (value of exception could not be determined);
·
4 camping
permits were not properly displayed by the camper (value of exception could
not be determined); and
·
1 camper displayed a 2004 permit for the 2005 Fair
resulting in underpayment of $15.
(Finding 3, pages10-11)
We recommended
Fair officials improve control procedures over camping revenue and
receipts. Further, Fair officials
should enhance controls over the completion and monitoring of camping
permits.
Department
officials agreed with our recommendation and stated they will review camping
policies and procedures, communicate them clearly to all temporary staff, and
strictly enforce them.
IMPROPER COMPLETION, UNTIMELY PROCESSING AND INADEQUATE MONITORING OF
CONTRACTS
The DuQuoin State Fair (Fair) did not
timely process, complete or monitor contracts.
During our sample testing of 9 contractual
obligation documents (CODs) in 2004 totaling $153,490 and 10 CODs in 2005
totaling $131,369, we noted that the Fair did not file all 19 CODs (100%)
within 30 days of executing the contracts with the Illinois Office of the
Comptroller. The COD’s were filed
from 10 days to 179 days late.
Beer concessionaires pay a fixed
amount per keg or case of beer used during the Fair. During the 2004 Fair, the auditors could
not determine whether the ending inventory balance for the beer inventory was
accurate. Auditors attempted to
compare the ending balance as stated by the beer concessionaire with the
credit invoice (statement of unsold beer from the beer distributor). However, Fair personnel could not provide
a copy of the Credit Invoice. The
total dollar value of any loss could not be determined. (Finding 8, pages17-18)
We recommended the Fair set up a contract
tracking system to ensure contractors return contracts to the Fair for
signature before the contractor begins services.
Department
officials agreed with our recommendation and stated they will set up a
contract tracking system to better monitor its contracts.
OTHER FINDINGS
The remaining findings
are reportedly being given attention by Department management. We will review the progress toward
implementation of our recommendations during our next examination.
Ms. Laura Lanterman, Chief Fiscal
Officer, provided the responses to our findings and recommendations.
FINANCIAL
RESULTS OF THE FAIR
Fair expenditures exceeded revenues by
$731,153 and $1,349,727 for the years ended September 30, 2005 and 2004,
respectively. (page 21)
ACCOUNTANTS’ REPORT
The auditors’ have applied certain limited procedures to the
accompanying supplementary information of the DuQuoin State Fair, except for
information marked “not examined”.
_______________________________________
WILLIAM
G. HOLLAND, Auditor General
WGH:JAF:pp
SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen LLP were our special assistant
auditors for this examination.
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