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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INADEQUATE CONTROLS TO ENSURE EXCESS
FUNDS ARE TRANSFERRED TO THE GENERAL REVENUE FUND
The Department has inadequate controls to ensure excess funds in the
University of Illinois Hospital Services Fund (Fund 136) are transferred to
the General Revenue Fund (Fund 001).
The Department did not transfer excess monies from Fund 136 to Fund
001 until May. In May the Department
transferred $30.0 million to Fund 001; however, the average daily balance of Fund
136 from July 1 until the transfer was $42.4 million. Prior to the transfer, the highest daily
balance was $47.6 million and the lowest daily balance was $29.9
million. In addition, it was noted
that two marginal transfers were made prior to May that totaled $2.2
million. The average daily balance of
the fund was approximately $38.2 million for the fiscal year. (Finding 7,
page 18)
We recommended the Department implement additional controls for Fund
136 to ensure only necessary balances are maintained and excess funds are
timely transferred to Fund 001 as mandated by State statute.
Department officials concurred with the finding and responded action
was taken, beginning in the month of January 2006, to reduce the fund’s
balance to comply with the statute.
TIME SHEETS NOT MAINTAINED IN COMPLIANCE WITH THE STATE
OFFICIALS AND EMPLOYEES ETHICS ACT
The Department is not maintaining time sheets for its employees in
compliance with the State Officials and Employees Ethics Act (Act).
The Department had personnel policies in regard to timekeeping, but
the Department only required “Executive Level Staff” to maintain a daily time
sheet which documents the time spent each day on official State
business. The Department had an
average of 2,296 employees at June 30, 2005 and the Department only required
14 (0.61%) employees to prepare time sheets in accordance with the Act.
We selected 6 of the 14 employees required to submit time sheets to
determine whether the time sheets were completed for 3 of the 12 months under
audit (July, November, and April). We
noted that 2 of 18 (11%) time sheets tested could not be located by the
Department, as the employee had failed to complete them. (Finding 2, page 13)
We recommended the Department amend its policies to require all
employees maintain time sheets in compliance with the Act. We further recommended the Department
ensure time sheets are completed in accordance with Department policies and
retained by the fiscal office for the required statutory period.
The Department accepted the finding and responded it stands ready to
implement a department-wide timekeeping policy to comply with the Act. However, the union has demanded to bargain
over the impact; therefore, implementation of the policy has been put on
hold. The Department is implementing
a policy instructing that a monthly time sheet reminder be sent to all
Executive Level Staff.
REPORTS OF REORGANIZATION NOT FILED AS REQUIRED
The Department has not filed reports with the
General Assembly regarding reorganization as required.
Executive Order 2004-3, Executive Order to
Reorganize Agencies by the Transfer of Certain Programs of the Department of
Commerce and Economic Opportunity and the Department of Revenue to the
Department of Public Aid and the Department of Aging transferred the
powers, duties, rights and responsibilities related to (i)
LIHEAP/Weatherization to the Department of Public Aid and (ii) Circuit
Breaker/Pharmaceutical Program to the Department of Public Aid and the
Department of Aging. This Executive
Order was effective July 1, 2004. The
initial report to the General Assembly was due January 1, 2005.
The Executive Reorganization Implementation Act (15
ILCS 15/11) requires “Every agency created or assigned new functions pursuant
to a reorganization shall report to the General Assembly not later than 6
months after the reorganization takes effect and annually thereafter for 3
years.”
The Department has not submitted reports as required
by the Executive Reorganization Implementation Act for the reorganization
noted above. (Finding 5, page 16)
We recommended the Department file the reports with
the General Assembly within six months of a reorganization taking effect
pursuant to the requirements of the Executive Reorganization Implementation
Act and annually thereafter for three years.
Also, we recommended past due reports be filed promptly.
The Department accepted the finding and responded
the reports will be filed with the Illinois General Assembly upon completion.
IMPROPER CONTROLS OVER SIGNATURE
AUTHORITY
The Department has not rescinded signature authority
for individuals no longer employed by or under agreement with the Department.
During our review of Director signature authorities,
it was noted that 8 of 39 (21%) of the signature authority cards on file at
the Comptroller’s office were for individuals who are no longer employed by
or under agreement with the Department.
The individuals had not been employed by or under agreement with the
Department for between 49 and 730 days.
(Finding 6, page 17)
We recommended the Department rescind signature
authorization for individuals no longer employed by or under agreement with
the Department, and develop policies to monitor signature authorizations on
file at the Comptroller’s office.
The Department agreed with the finding and responded
that the Department is refining its procedures to ensure the Comptroller’s
Office is notified promptly when an individual’s signature authority has been
rescinded so the card can be removed from their active file.
OTHER FINDINGS
The remaining findings are reportedly
being given attention by the Department.
We will review the progress towards the implementation of our
recommendations in our next compliance examination.
Ms. Brenda Vost, External Audit Liaison
provided responses to the recommendations on February 9, 2006.
AUDITORS’ OPINION
Our auditors stated the June 30, 2005
financial statements are fairly presented in all material respects.
___________________________________
WILLIAM
G. HOLLAND, Auditor General
WGH:GSS:pp
SPECIAL ASSISTANT AUDITORS
BKD, LLP were our special assistant auditors.
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