REPORT DIGEST

DEPARTMENT OF AGRICLUTURE
ILLINOIS STATE FAIR

COMPLIANCE AUDITAND SUPPLEMENTARY FINANCIAL INFORMATION

For the Two Years Ended:
September 30, 1999

Summary of Findings:

Total this audit             10
Total last audit               3
Repeated from last audit 0

Release Date:
September 7, 2000

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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

  • The Comparative Statement of Revenues and Expenditures for the Illinois State Fair does not include all significant Fair-related expenditures.
  • The Fair paid an invoice for $7,860 from Fiscal Year 2000 appropriations for services rendered during Fiscal Year 1999.
  • The Fair unnecessarily incurred ticket collection costs on behalf of the auto racing contractor.
  • No fees were collected during the fair and no contract was in effect for a vendor who sold feed and bedding materials.

 

 

 

 

 

ILLINOIS DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE AUDIT
For The Two Years Ended September 30, 1999

REVENUE AND EXPENDITURE STATISTICS

FY 1999

FY 1998

FY 1997

  • Total Revenue
       Tickets
          % of Revenue
       Space Rental:  Fair
          % of Revenue
       Entry Fees
          % of Revenue
  • Total Expenditures (All Funds)
       Personal Services
          % of Expenditures
       Other Payroll Costs (FICA, Retirement)
          % of Expenditures
       Contractual Services
          % of Expenditures
       Fair Entertainment
          % of Expenditures
       Premiums and Awards
          % of Expenditures
       All Other Operations Items
          % of Expenditures
  • (Deficiency) of Revenues Over
      Expenditures

$3,490,464
$1,985,728
56.9%
$1,167,116
33.4%
$337,620
9.7%

$3,905,198
$619,344
15.8%
$179,557
4.6%
$1,097,147
28.1%
$881,462
22.6%
$881,643
22.6%
$246,045
6.3%


$(414,734)

$3,106,444
$1,593,987
51.3%
$1,183,164
38.1%
$329,293
10.6%

$3,600,818
$617,973
17.2%
$153,676
4.3%
$853,890
23.7%
$924,131
25.7%
$890,478
24.7%
$160,670
4.4%


$(494,374)

$3,355,738
$1,796,644
53.5%
$1,233,309
36.8%
$325,785
9.7%

$3,780,988
$659,592
17.5%
$152,316
4.0%
$866,550
22.9%
$951,298
25.2%
$919,584
24.3%
$231,648
6.1%


$(425,250)

SUPPLEMENTARY INFORMATION

FY 1999

FY 1998

FY 1997

  • Employment Statistics (Approximate)
       Full Time Employees
       September through May
    (Temporary)
       June
    (Temporary)
       July through August
    (Temporary)
  • Selected Activity Measures
       Gate Admissions - Tickets Sold
    (Unaudited)
       Estimated Attendance
    (Unaudited)
       Grandstand Shows - Tickets Sold
    (Unaudited)
       Grandstand Show Revenues
       Grandstand Show Expenditures
  • Pari-mutuel Wagering Receipts
       Pari-mutuel Wagering Receipts
       Pari-mutuel Wagering Expenditures

10
16
64
231

251,952
1,063,059
59,296
$986,205
$1,140,042


$192,284
$291,459

10
10
38
221

229,991
826,648
48,728
$665,799
$839,866


$165,546
$239,191

8
1
22
256

299,356
798,799
64,082
$847,579
$830,054


$157,388
$254,332
AGENCY DIRECTOR

During Audit Period: Ms. Becky Doyle (10/1/88 - 1/18/99), Mr. Joseph Hampton (1/19/99 - 9/30/99)
Currently: Mr. Joseph Hampton















An estimated $1.3 million in Fair-related expenditures was excluded from the Statement of Revenues and Expenditures



























An invoice for $7,860 was paid from the wrong Fiscal Year appropriation




















The Fair unnecessarily incurred ticket collection costs on behalf of the auto racing contractor




























No fees were collected and no contract was in effect for a vendor who sold feed and bedding materials

 

 

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

REPORTING OF ILLINOIS STATE FAIR EXPENDITURES

The Comparative Statement of Revenues and Expenditures for the Illinois State Fair does not include all significant Fair-related expenditures. Most Fair costs are paid from the State Fair Fund and direct Fair-related appropriations. However, an estimated $1.3 million in expenditures which were not directly appropriated or readily identifiable as expenditures of the State Fair were excluded from the Statement of Revenues and Expenditures. These estimated Fair-related costs were from the Springfield Buildings and Grounds appropriation, which is also used for non-fair activities, general upkeep and maintenance of the fairgrounds and for the Department’s main office building located on the fairgrounds. The Department developed a methodology to estimate Fair-related costs from this appropriation ($1,276,243) but did not identify the actual expenditures. (Finding 1, pages 9-10)

We recommended the Department maintain actual expenditure detail for the State Fair and other components of the Buildings and Grounds appropriation to ensure accurate reporting and accounting.

Department officials accepted our recommendation and stated beginning in FY2001, they will maintain detailed expenditure records for the State Fair and other components of the Buildings and Grounds appropriation.

PAYMENT MADE FROM WRONG YEAR’S APPROPRIATION

The Fair paid an invoice for $7,860 from Fiscal Year 2000 appropriations for services rendered during Fiscal Year 1999. The Fair’s Pari-Mutual contractor did not receive the 1998 satellite billing until 1999. The Fair reimbursed the contractor for the billing in October 1999 and charged the expenditure to the Fiscal Year 2000 appropriation. Recourse for payment when the time limit has expired may be had only through the Illinois Court of Claims. (Finding 6, page 15)

We recommended the Fair not make payments for services for which appropriations have lapsed.

 

 

Department officials accepted our recommendation and stated the payment was inadvertent and that it will inform the contractor of the time limits for submitting requests for payment.

INAPPROPRIATE COLLECTION OF MONEY FOR LESSEE

The lease agreement with the auto racing contractor provided only that the Fair was responsible for providing ticket booths for the contractor. However, the Fair collected ticket admission fees for the auto races thus unnecessarily incurring costs for Fair personnel, credit card fees and losses on bad checks because auto ticket proceeds were commingled with other Fair revenues. Further, the Fair’s ticket contractor sold tickets for auto races, the fees of which were also absorbed by the Fair instead of the auto racing contractor. Deposits of cash for the full amount of ticket sales were made to the account of the contractor with no reductions for any of the above costs. Because auto racing proceeds were commingled with other Fair proceeds, the costs incurred by the Fair on behalf of the contractor could not be determined. (Finding 7, page 16)

We recommended the Fair discontinue the practice of selling tickets for the auto race lessee or modify the contracts to avoid incurring unnecessary costs.

Department officials accepted our recommendation and stated they will continue to sell tickets but will ensure that future contracts provide specifically for services rendered by the Fair. The Department will also bill the contractor for credit card fees, bad checks, and ticket contractor fees.

FEES NOT COLLECTED FROM VENDOR

No fees were collected during the fair from a vendor who sold feed and bedding materials to exhibitors for the 1999 Fair. The contract for this vendor, which expired in 1998, provided for increased fees for each year of the contract. The 1998 contract was for $5,000. A new contract was not renegotiated with this vendor for 1999 and no fees were collected during the Fair. Fair officials stated the lack of a contract was an oversight. (Finding 10, page 19)

We recommended all vendor contracts be renewed annually and the Fair assure that no vendors are at the fair without a contract.

Department officials accepted our recommendation and stated they collected a fee for 1999; have a signed contract for 2000; and will continue efforts to have signed contracts for all Fair vendors.

OTHER FINDINGS

The remaining findings were being given attention by the Department. We will review progress toward implementing all recommendations in our next audit.

AUDITOR’S OPINION

The Illinois State Fair’s funds were audited in our financial audit of the Illinois Department of Agriculture.

 

_____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMC:pp

SPECIAL ASSISTANT AUDITORS

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