CAPITAL DEVELOPMENT BOARD
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
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
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.
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.
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
SPECIAL ASSISTANCE AUDITORS
E.C. Ortiz and Co., LLP were our special assistant auditors on this engagement.