REPORT DIGEST

DEPARTMENT OF AGRICULTURE

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2001

Summary of Findings:

Total this audit 7
Total last audit 13
Repeated from last audit 2

Release Date:
April 24, 2002

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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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

  • Weights and measuring devices are not being inspected every twelve months as required by State law.
  • The Illinois Aquaculture Development Fund has an excess fund balance of $1,000,000 that should be returned to the General Revenue Fund.
  • The Department has not completed preparation of its Agency Action Plan as required by the Interagency Wetland Policy Act of 1989.

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

 

 

DEPARTMENT OF AGRICULTURE
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 2001

EXPENDITURE STATISTICS

FY 2001

FY 2000

FY 1999

Total Expenditures (All Funds)

$144,693,034

$130,978,276

$113,507,533

OPERATIONS TOTAL
% of Total Expenditures

$80,876,350
55.9%

$73,909,274
56.4%

$67,000,714
59.0%

Personal Services
% of Operations Expenditures
Average No. of Employees

$28,339,519
35.0%
608

$26,941,178
36.5%
598

$24,730,048
36.9%
595

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$6,986,614
8.6%

$6,414,791
8.7%

$5,831,992
8.7%

Interfund Cash Transfers
% of Operations Expenditures

$28,212,000
34.9%

$25,282,000
34.2%

$23,576,653
35.2%

Contractual Services
% of Operations Expenditures

$10,413,561
12.9%

$9,339,027
12.6%

$7,942,248
11.9%

All Other Operations Items
% of Operations Expenditures

$6,924,656
8.6%

$5,932,278
8.0%

$4,919,773
7.3%

GRANTS, PERMANENT IMPROVEMENTS, REFUNDS - TOTAL
% of Total Expenditures


$63,816,684
44.1%


$57,069,002
43.6%


$46,506,819
41.0%

Cost of Property and Equipment

$155,916,606

$144,487,499

$131,948,869

SELECTED ACTIVITY MEASURES (Unaudited)

FY 2001

FY 2000

FY 1999

Number of Inspections by Division
Agricultural Products
Animal Health (Livestock/Auction Licensees)
Animal Welfare
Environmental Programs (Nursery Dealers)
Meat Inspections:
Livestock (Head)
Plants/Brokers
Compliance Reviews
Warehouses (Grain Examinations)
Weights & Measures (Devices)


11,064

1,238
4,335
695

945,109
788
8,163
998
111,037


11,895

4,252
5,100
865

896,754
284
2,701
941
109,324


9,543

504
4,770
N/A

904,288
330
1,500
822
103,433

AGENCY DIRECTOR(S)

During Audit Period: Mr. Joseph Hampton
Currently: Mr. Joseph Hampton

 

 

 

 

 

9,633 (7.97%) of 120,856 weights and measuring devices did not receive an inspection as required in calendar year 2000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grant paid from General Revenue Fund rather than the Illinois Aquaculture Development Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency Action Plan 11 years past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WEIGHTS AND MEASURING DEVICES NOT INSPECTED EVERY TWELVE MONTHS

We noted that 7.97% (9,633 of 120,856) of weights and measuring devices did not receive an inspection in calendar year 2000 as required by the Weights and Measures Act (225 ILCS 470/10).

Inspectors rejected or condemned 5.26% (4,703 devices rejected; 1,143 condemned) of all devices inspected in 2000. Condemned devices are so far out of specification they cannot be used without repair. Rejected devices are only slightly out of specification and can be used for 10 days to allow time for repair. Such devices include but are not limited to gas pumps, grocery store scales, hardware store scales, feed and grain scales, drug measuring scales, vehicle scales and State Police scales.

Department officials stated that they were not able to inspect all weights and measuring devices within the twelve month time frame because of staff shortages caused by leaves of absence, resignations and death and by loss of time due to weather conditions during winter months. The Department had increased the number of inspectors from 35 to 40 in 1998, and 97.75% of the devices were inspected in 1999. (Finding 1, page 15) This finding was first reported in 1987.

We recommended the Department provide sufficient staff so that all weights and measuring devices can be inspected annually as required by statute.

Department officials accepted the recommendation and responded that they believe they can meet the statutory requirement to inspect all weights and measuring devices within twelve months with the current headcount of 42 field inspectors and with the following changes to operating procedures:

  • Developing a more accurate database of devices to be inspected;
  • assigning inspections by device type rather than territory;
  • closer monitoring of inspector’s progress on timely completion of work assignments; and filling vacancies as soon as possible.

Department officials stated the changes in operating procedure were effective January 2002. (For previous Department responses, see Digest footnote.)

EXCESS AQUACULTURE DEVELOPMENT FUND BALANCE

The Illinois Aquaculture Development Fund was established as required by the Aquaculture Development Act (Act) (20 ILCS 215/5.5). Pursuant to the Act, on July 1, 1999 and on each July 1 thereafter through July 1, 2008, the Comptroller is required to transfer $1,000,000 from the General Revenue Fund to the Illinois Aquaculture Development Fund. These transfers were appropriately made on July 1, 1999 and July 1, 2000.

The Department is directed to make grants from the Illinois Aquaculture Development Fund to an Aquaculture Cooperative. The Department paid $1,000,000 to the Cooperative in fiscal year 2000 and fiscal year 2001. The Act states "the grants for the Cooperative shall be distributed from the Illinois Aquaculture Development Fund as provided by rule." However the grant made in fiscal year 2000 was paid from the General Revenue Fund rather than the Illinois Aquaculture Development Fund. Accordingly there has been an excess fund balance of $1,000,000 in the Illinois Aquaculture Development Fund since July 1, 1999.

Department personnel stated the Department paid the fiscal year 2000 grant from the General Revenue Fund because the fiscal year 2000 appropriation for the grant to the Illinois Aquaculture Cooperative was made from the General Revenue Fund rather than the Illinois Aquaculture Development Fund. (Finding 3, pages 17-18)

We recommended the Department either obtain an appropriation to transfer $1,000,000 from the Illinois Aquaculture Development Fund to reimburse the General Revenue Fund or obtain statutory authority to forego the required $1,000,000 July 1 transfer for one year.

The Department officials responded that they have no reason to believe that an error was made in appropriating funds from the General Revenue Fund for aquaculture cooperatives in fiscal year 2000. However they agreed to notify both the Governor’s Office (Bureau of the Budget) and the General Assembly of the Aquaculture Development Fund balance so that they may take whatever action they deem to be necessary.

AGENCY ACTION PLAN NOT TIMELY PREPARED

The Interagency Wetland Policy Act of 1989 (20 ILCS 830/2-2) provides that: "Within one year following passage of this act each State agency serving on the Interagency Wetland Committee shall prepare an Agency Action Plan, which shall be used as the agency’s procedural plan for the implementation of the Act." The Act was effective August 12, 1989. The Department is named as serving on the Interagency Wetlands Committee pursuant to section 2-1 of the Act and is still in the process of developing a plan. (Finding 7, page 22)

Department officials agreed with our recommendation to allocate sufficient resources to complete its Agency Action Plan without further delay.

OTHER FINDINGS

The remaining findings were less significant and are reportedly being given attention by the Department. We will review progress toward implementing our recommendations in our next audit.

Ms. Nancy Hilger, Chief Internal Auditor, provided the responses to our findings and recommendations.

AUDITORS’ OPINION

Our auditors state the combined financial statements of the Department of Agriculture as of June 30, 2001 and June 30, 2000, and for the years then ended are fairly presented in all material respects.

_______________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Sleeper, Disbrow, Morrison, Tarro & Lively, LLC.

DIGEST FOOTNOTE

WEIGHTS AND MEASURING DEVICES NOT INSPECTED EVERY TWELVE MONTHS – Previous Department Responses:

1999: "The Department concurs with this finding. We plan to continue to improve the inspection process until all weighing and measuring devices are inspected once every twelve months. Because the Department has hired and now trained an adequate staff to meet those mandated inspection requirements, we anticipate less than 5% of all known devices will not be inspected during 1999, a significant improvement from 28% in 1996 and 11% in 1998. Another factor to be considered is the total number of devices being inspected, an even larger number of devices inspected by percentage compared to 1996 and 1998. As the inspection staff becomes more knowledgeable in multiple inspection areas and no cities drop their inspection programs, we anticipate the number of uninspected devices will continue to decrease."

1997: "The Department utilizing increased funding, new equipment and improved efficiency, will attempt to inspect all weighing and measuring devices at least once every twelve months."

1995: "The Department concurs. The Department will attempt to implement this recommendation. The FY96 budget request will seek additional resources."

1993: "The Department concurs and will attempt to implement this recommendation. Additional inspection personnel have been requested but the Department has been unable to obtain funding from the General Assembly. Efforts to obtain necessary funding will continue."

1991: "The Department has requested additional inspection personnel, but has been unable to obtain funding from the General Assembly. The statute is currently being reviewed to determine whether or not the twelve month requirement can be changed."

1989: "The Department has requested adequate personnel to perform the required inspections in each annual budget cycle. Where practical, geographic reassignments are being done on a temporary basis."

1987: "The Division’s ability to meet its mandate of inspecting all weighing and measuring devices every twelve months has been hampered by a reduction of 28% of its manpower over the past eight years. Productivity gains have been more than offset by this loss of headcount. The Division has and will continue to temporarily assign inspectors outside their assigned geographic area to meet the statutory mandate. However, a shortage of travel budget limits how much reassigning can be done."