REPORT DIGEST

REPORT DIGEST

DEPARTMENT OF AGRICULTURE

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit 16

Total last audit 12

Repeated from last audit 5

Release Date:

June 20, 2006

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also available on the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

¨ The Department of Agriculture made payments for efficiency initiative billings from improper line item appropriations.

¨ The Department entered into an interagency agreement with the Department of Central Management Services that had vague terms and questionable benefit to the Department, and was inadequately documented.

¨ The Department did not process contract obligation documents in a timely manner.

¨ The Department did not have written policies and procedures in place related to systems development by external developers and did not assure all systems were consistently developed, thoroughly tested, and adequately documented.

¨ The Department did not have an adequate and tested comprehensive disaster contingency plan to ensure its critical computer systems can be recovered in the event of a disaster.

¨ The Department did not maintain time sheets of time worked by employees as required by the State Officials and Employees Ethics Act.

¨ The Department did not have an adequate segregation of duties over the cash receipts of the Illinois Colt Stakes/Championship Purse Fund.

¨ The Department did not fully implement six of ten recommendations presented in the Management Audit – Regulation of Grain Dealers and Warehouseman.

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

DEPARTMENT OF AGRICULTURE

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2005

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

· Total Expenditures (All Funds)...................

$100,242,380

$108,519,323

$113,835,813

OPERATIONS TOTAL..................................

% of Total Expenditures........................

$74,336,187

74.2%

$73,940,175

68.1%

$75,328,068

66.2%

Personal Services...................................

% of Operations Expenditures...........

Average No. of Employees...............

Average Salary per Employee...........

$21,123,001

28.4%

479

$44,098

$21,995,122

29.8%

498

$44,167

$23,287,949

30.9%

536

$43,448

Other Payroll Costs (FICA, Retirement)..

% of Operations Expenditures...........

$6,098,259

8.2%

$5,288,691

7.1%

$5,671,204

7.5%

Interfund Cash Transfers........................

% of Operations Expenditures..............

$25,287,592

34.0%

$24,081,740

32.6%

$21,768,040

28.9%

Contractual Services...............................

% of Operations Expenditures...........

$4,014,354

5.4%

$4,385,745

5.9%

$4,272,535

5.7%

Lump Sum.............................................

% of Operations Expenditures...............

$14,848,075

20.0%

$14,887,118

20.1%

$17,011,996

22.6%

All Other Operations Items.....................

% of Operations Expenditures.......................

$2,964,906

4.0%

$3,301,759

4.5%

$3,316,344

4.4%

GRANTS, PERMANENT IMPROVEMENTS, AND REFUNDS EXPENDITURES - TOTAL

% of Total Expenditures.................................

$25,906,193

25.8%

$34,579,148

31.9%

$38,507,745

33.8%

· Cost of Property and Equipment.................

$190,402,931

$171,843,165

$170,069,841

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2005

FY 2004

FY 2003

Number of Inspections by Division

Agricultural Products.........................................

Animal Health (Livestock/Auction Licensees).....

Animal Disease Laboratories (tests performed)...

Environmental Programs (Nursery Dealers)........

Meat Inspections:

· Livestock (Head)...................................

· Plants/Brokers.......................................

· Compliance Reviews..............................

Warehouses (Grain Examinations)......................

Weights & Measures (Devices)..........................

7,566

1,574

751,269

782

858,726

966

5,773

947

111,521

10,126

2,161

921,593

565

814,383

863

5,151

601

129,461

9,068

1,118

888,451

433

938,872

834

6,659

761

121,317

AGENCY DIRECTOR

During Audit Period: Mr. Charles A. Hartke

Currently: Mr. Charles A. Hartke

The Department received $1,096,112 in efficiency initiative billings in FY04 and FY05

The Department could not provide documentation on any guidance for the FY04 billings detailing where savings were to occur

The Department did not make payments from line items where the cost savings were anticipated to occur but across different funds and line items

$400,000 toward the procurement initiative was paid from an appropriation to be used for a multi-purpose arena

Interagency agreement with CMS had vague terms and questionable benefit to the Department

Agreement for “strategic marketing services”

Vendor paid $76,566

Department unable to provide documentation to evidence the vendor’s services provided

For 146 (44%) of 341 contracts processed the Department filed late filing or professional and artistic affidavits in fiscal year 2005

The Department did not have written policies related to systems development

Systems were not consistently developed, thoroughly tested, or adequately documented

Department did not have an adequate and tested disaster contingency plan

Plan was not tested in fiscal year 2005

The Department did not comply with the State Officials and Employee Ethics Act

Segregation of duties inadequate over the cash receipts of the Illinois Colt Stakes/Championship Purse Fund

6 of 10 recommendations from the Management Audit were not fully implemented

Background checks not performed