REPORT DIGEST

COMMISSION ON GOVERNMENT FORECASTING AND ACCOUNTABILITY

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit                          2

Total last audit                          0

Repeated from last audit           0

Release Date:

February 14, 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 is also available on

the worldwide web at

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

INTRODUCTION

      On February 1, 2004, the Commission on Government Forecasting and Accountability replaced the Economic and Fiscal Commission and Pension Laws Commission pursuant to the Government Forecasting and Accountability Act and the Legislative Reorganization Act of 1984.

SYNOPSIS

·        The Commission did not maintain sufficient controls over the recording and reporting of its property.

·        The Commission did not timely file reports by the statutorily mandated due dates.

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

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

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

$1,175,718

$753,829

$772,205

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

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

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

$639,378

54.4%

12

$496,257

65.8%

10

$594,261

77.0%

11

         Other Payroll Costs (FICA, Retirement)..

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

$173,997

14.8%

$102,615

13.6%

$126,505

16.4%

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

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

$55,230

4.7%

$39,584

5.3%

$29,969

3.9%

          Lump Sums...........................................

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

$288,242

24.5%

$99,721

13.2%

$0

0%

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

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

$18,871

1.6%

$15,652

2.1%

$21,470

2.7%

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

$171,031

$176,542

$75,541

SELECTED ACTIVITY MEASURES

FY 2005

FY 2004

     Reports Published..................................................

                13

              8

     Pension Impact Notes Prepared..............................

     Debt Impact Notes Prepared..................................

     Number of Bills that became Law...........................

              310

              105

                20

           140*

            52

              9

AGENCY DIRECTOR

During Audit Period:  Daniel R. Long

Currently:  Daniel R. Long

Quarterly Reports of State Property (C-15’s) were inaccurate

Equipment items were not recorded at their full cost

Equipment did not display a unique six-digit identification number and was not clearly marked to indicate it was the property of the State of Illinois

The “Legislative Capital Plan” reports were submitted  late

The report on whether the 90% funding ratio continues to represent an appropriate goal was not filed with the General Assembly

The “Report on the Costs and Savings of the State Employees Early Retirement Incentive Program” was submitted 54 days late

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

PROPERTY CONTROL WEAKNESSES

      The Commission on Government Forecasting and Accountability (Commission) did not maintain sufficient controls over the recording and reporting of its property.  We noted the following:

·        The Quarterly Reports of State Property (C-15’s) were inaccurate and did not agree to the Commission’s supporting documentation. The FY04 additions were overstated by $11,761 and the FY05 additions were understated by $4,183.  The FY04 deletions were overstated by $15,924.  The FY04 net transfers were understated by $3,267 and the FY05 net transfers were overstated by $17,223.  In addition, 2 of 8 (25%) reports were not mathematically accurate.

·        Four of 25 (16%) equipment items tested were not recorded on the property listing at their full cost resulting in an understatement of $94. 

·        The Commission’s equipment did not display a unique six-digit identification number and was not clearly marked to indicate that they were the property of the State of Illinois. The Commission’s equipment inventory totaled $171,031 at June 30, 2005.  (Finding 1, pages 8-9)

      We recommended that Commission strengthen controls over its property.  Specifically, the Commission should implement appropriate procedures to ensure all purchases are recorded at full cost and reconcile C-15’s to property records and review for reasonableness prior to submission.  In addition, the Board should ensure its equipment marking or tagging procedures comply with applicable laws and rules.

      Commission management agreed with the finding and stated that the spreadsheet formula was set up incorrectly for the C-15’s, and it was corrected. Commission management also stated that they will ensure property totals include freight charges and will implement changes to their current equipment marking procedures.

REPORTS NOT TIMELY FILED

      The Commission on Government Forecasting and Accountability (Commission) did not timely file reports by the statutorily mandated due dates.  We noted the following:

·        The FY05 and FY06 “Legislative Capital Plan,” reports on the State’s long-term debt capital needs, were submitted 23 and 33 days late in FY04 and FY05, respectively. 

·        The Commission had not reported its findings and recommendations to the Governor and the General Assembly on whether the 90% funding ratio adopted continues to represent an appropriate goal for State-funded retirement systems in Illinois as of the end of fieldwork.

·        The “Report on the Costs and Savings of the State Employees Early Retirement Incentive Program” was submitted on February 23, 2005, 54 days late.  (Finding 2, pages 10-11)

      We recommended the Commission comply with the applicable statutes by submitting the required reports and estimates to the General Assembly and/or the Governor by the statutorily required dates or seek legislative remedy to change the reporting dates.

      Commission management accepted the finding and stated that the reports were filed late due to the review process to ensure the accuracy of the information. Commission management also stated that the delay in reporting its findings and recommendations to the Governor and General Assembly was a result of significant changes to the Pension Code.

AUDITORS’ OPINION

        We conducted a compliance examination of the Office as required by the Illinois State Auditing Act.   We have not audited any financial statements of the Office for the purpose of expressing an opinion because the Office does not, nor is it required to, prepare financial statements.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

              AUDITORS ASSIGNED

      This examination was performed by staff of the Office of the Auditor General.