REPORT DIGEST

ILLINOIS STATE FAIR

COMPLIANCE EXAMINATION
For the Two Years Ended: September 30, 2013

Release Date:  June 26, 2014

Summary of Findings:
Total this audit: 4
Total last audit:  6
Repeated from last audit: 3

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
www.auditor.illinois.gov

INTRODUCTION

The Illinois State Fair is an operating entity
of the Department of Agriculture.    The
Department is responsible for fulfilling the
statutory obligation to hold the annual
Illinois State Fair. The Fair is held to
promote agriculture and the agriculture
industry, and to provide for exhibits and
activities in the fields of industry,
education, arts and crafts, labor,
entertainment and other areas of interest to
the people of the State.

SYNOPSIS

• The Illinois State Fair collected
nominating, sustaining and starting fees in
excess of amounts allowed under the Illinois
Horse Racing Act of 1975.

• The Illinois State Fair did not exercise
adequate controls over temporary employee
timesheets.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE ILLINOIS HORSE RACING
ACT OF 1975

The Illinois State Fair (ISF) was not in
compliance with the Illinois Horse Racing Act
of 1975 concerning the nominating, sustaining
and starting fees exceeding 2% of the purse
for certain races.

The nominating, sustaining, and starting fees
of $300 to be paid by an entrant exceeded 2%
of the purse for 32 of 50 (64%) of races in
2012 and 30 of 48 (63%) of races in 2013.
(Finding 1, page 9)

We recommended the ISF comply with the
provisions of the Illinois Horse Racing Act.

ISF officials agreed with the finding and
stated it will comply with the provisions of
the Illinois Horse Racing Act or seek
legislative remedy to assist its compliance.

NEED TO IMPROVE CONTROLS OVER TEMPORARY
EMPLOYEE TIMESHEETS

The Illinois State Fair (ISF) did not exercise
adequate controls over temporary employee
timesheets.

During our examination, we noted 1 of 30 (3%)
in 2012 and seven of 30 (23%) in 2013
timesheets were not completed in accordance
with ISF procedures at the time of our on-site
observations. We noted some timesheets were
completed when the auditor attempted to review
them.  We also noted timesheets were completed
at the end of the employee’s shift, instead of
indicating when the employee arrived for the
shift. (Finding 4, page 12)

We recommended the ISF implement additional
controls to ensure employee attendance is
documented properly on a daily basis.

ISF officials agreed with the finding and
stated it will take steps to ensure employee
attendance is documented properly on a daily
basis.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the Illinois State Fair.
We will follow up on our findings during the
next examination of the ISF.

AUDITORS’ OPINION

We conducted a compliance examination of the
Illinois State Fair as required by the
Illinois State Auditing Act.  The Fair has no
funds that require an audit leading to an
opinion of financial statements.

WILLIAM G. HOLLAND
Auditor General

WGH:SKM

SPECIAL ASSISTANT AUDITORS

Sikich, LLP were our Special Assistant
Auditors for this engagement.