REPORT DIGEST

 

ILLINOIS ARTS COUNCIL

 

COMPLIANCE EXAMINATION

For the Two Years Ended: June 30, 2011

 

Release Date: March 6, 2012

 

Summary of Findings:

Total this audit: 2

Total last audit:  3

Repeated from last audit: 1

 

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

­­­­­­­­­­­____________________________

 

SYNOPSIS

 

• The Illinois Arts Council did not adopt formal Agency rules.

 

• The Illinois Arts Council did not reconcile its cash receipts to cash receipts reported by the Comptroller.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

FAILURE TO ADOPT FORMAL RULES FOR AGENCY AND GRANT PROCEDURES

 

The Illinois Arts Council did not draft or adopt formal agency rules, including rules relating to grant procedures.  Grant expenditures were $8,768,533 and $7,535,334 for fiscal years 2011 and 2010, respectively.

 

The Illinois Administrative Procedure Act (5 ILCS 100/5 et seq.) states that each agency shall maintain and file organizational rules, including a current description of the agency’s organization, current procedures for information requests, and a current description of the agency’s rulemaking procedures.   (Finding 1, page 9) This finding was first reported in 2007.

 

We recommended the Agency draft organizational rules and grant procedures, then contact the Joint Committee on Administrative Rules (JCAR) for assistance with the formal adoption process.

 

Agency Officials stated they did not currently have the staff or legal support to engage in this process and due to the financial crisis of the State, did not foresee funds being appropriated for this.  The Agency will, however, continue to seek guidance from the Office of the Governor on this finding.  (For previous Council response, see Digest Footnote #1)

 

 

 

FAILURE TO RECONCILE CASH RECEIPTS TO THE STATE COMPTROLLER’S RECORDS

 

The Illinois Arts Council did not reconcile its cash receipts received to cash receipts reported by the State Comptroller.  Cash receipts were $1,321,045 and $1,613,697 for Fiscal Year 2011 and Fiscal Year 2010, respectively.

 

The Statewide Accounting Management System Procedure (SAMS) 25.40.20 requires State Agencies to reconcile receipt account balances maintained by the Agency with Statewide receipt account records maintained by the Comptroller’s Office.  The reconciliation is required to be performed monthly and the Comptroller’s Office notified of any irreconcilable differences so that corrective actions may be taken.   (Finding 2, page 10)

 

We recommended the Agency perform formal monthly cash receipt reconciliations as required by The Statewide Accounting Management System (SAMS).

 

Agency Officials stated they will perform formal monthly cash receipt reconciliations to fully comply with SAMS procedures.

 

AUDITORS’ OPINION

 

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

 

 

WILLIAM G. HOLLAND

Auditor General

 

WGH:JGR:rt

 

AUDITORS ASSIGNED

 

Our special assistant auditors on this engagement were McGreal & Company, PC.

 

DIGEST FOOTNOTES

 

#1 –  FAILURE TO ADOPT FORMAL RULES FOR AGENCY AND GRANT PROCEDURES

 

2009:   Illinois Arts Council officials partially agreed with our finding, citing shortage of staff and legal support to engage in the process to comply.  The Agency will continue to seek the guidance of the Office of the Governor on this finding.