REPORT DIGEST
CAPITAL DEVELOPMENT BOARD
FINANCIAL AUDIT
For the Year Ended: June 30, 2011
Release Date: March 6, 2012
Summary of Findings:
Total this audit: 1
Total last audit: 1
Repeated from last audit: 0
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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INTRODUCTION
The Capital Development Board (Board) serves as the
non-road, construction management agency of the State of Illinois. The auditor performed a financial audit of
the Board for the year ended June 30, 2011.
SYNOPSIS
The Capital Development Board (Board) did not establish
adequate controls over approval of contracts prior to the performance of
services and resolution of outstanding procurement issues.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER APPROVAL OF CONTRACTS
The Board had not established adequate controls over
approval of contracts prior to the performance of services and resolution of
outstanding procurement issues.
Due to the lack of controls governing the interactions between the Board and the Chief Procurement Officer (CPO), we noted the following:
• Contract vouchers, totaling $685,992, represented improper payments for services performed prior to a properly executed contract.
• Approval by the CPO for an emergency purchase tested,
totaling $28,311 was not evident on the payment voucher.
• Request for payments on vouchers, totaling $163,674, were
put on hold by the Board’s fiscal department due to contract modifications,
change orders, and authority to proceed for the construction work lacked the CPO’s approval.
Additionally, the Board performed an analysis and issued a
report entitled “Project Process Assessment” which was dated July 2011. This report identified 135 instances of
departure from the Board’s procurement practices. Noncompliance represented approximately 6% of
the total contract actions processed over the past two years. (Finding 11-1,
pages 36-38)
We recommend the Board work with the CPO to develop
procedures to ensure all contracts are executed and approved prior to the start
of the services. In addition, the Board
should implement appropriate procedures to ensure services are not provided
after the contracts have expired.
Board officials agreed with the finding and indicated they
are working with the CPO to develop procedures to ensure contracts are executed
and approved before work begins.
AUDITORS’ OPINION
Our special assistant auditors stated the Capital
Development Board financial statements as of and for the year ended June 30,
2011 are fairly presented in all material respects.
WILLIAM G. HOLLAND
Auditor General
WGH:MKL
SPECIAL ASSISTANCE AUDITORS
E.C. Ortiz and Co., LLP were our
special assistant auditors on this engagement.