REPORT DIGEST DEAF AND HARD OF HEARING COMMISSION COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2013 Release Date: January 29, 2014 Summary of Findings: Total this audit: 2 Total last audit: 2 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 Deaf and Hard of Hearing Commission (Commission) did not maintain sufficient controls over the reconciliation, recording and reporting of its State property. • The Commission submitted inaccurate Agency Fee Imposition Reports to the Illinois Office of the Comptroller. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS PROPERTY CONTROL WEAKNESSES The Deaf and Hard of Hearing Commission (Commission) did not maintain sufficient controls over the reconciliation, recording and reporting of its State property. Some of the conditions noted during our testing follow: • The Commission’s property and equipment expenditures processed by the Illinois Office of the Comptroller (Comptroller) did not reconcile to transfers and additions recorded on the Commission’s FY13 3rd and 4th Quarter C-15 reports. • The Commission filed its annual Certification of Inventory with the Department of Central Management Services (CMS) 30 days late. • The Commission did not timely remove equipment items from its property records. • Equipment items tested were located in a different geographical location than reported on the Commission’s property listing. • Equipment item costs were not correctly recorded on the Commission’s property listing. • The Commission had obsolete equipment that was not transferred to CMS. (Finding 1, pages 9-11) This finding was first reported in 2009. We recommended the Commission strengthen controls and procedures over the recording and reporting of its State property. The Commission accepted the recommendation. (For the previous Commission response, see Digest Footnote #1.) INACCURATE FEE IMPOSITION REPORTS FILED WITH THE STATE COMPTROLLER The Commission did not submit accurate Agency Fee Imposition Reports (Report) to the Comptroller. During testing, we noted the following: • The Commission failed to record fees relating to sign language interpreter licensure and conference registration fees on its FY12 Report. • The Commission’s FY13 report included fees received in FY12 and FY14. • The Commission improperly included a refund on its FY13 Report. • The total fee amount on the FY13 Report was overstated by $101,244 because it contained FY12 in-transit amounts, FY14 receipts, miscellaneous receipts not considered fees, and a $96,600 statutory transfer. (Finding 2, pages 12-13) We recommended the Commission implement controls and procedures to submit accurate Reports to the Comptroller. The Commission accepted the recommendation. AUDITORS’ OPINION We conducted a compliance examination of the Commission as required by the Illinois State Auditing Act. The Commission has no funds that require an audit leading to an opinion of financial statements. WILLIAM G. HOLLAND Auditor General WGH:jv AUDITORS ASSIGNED The examination was conducted by staff of the Office of the Auditor General. DIGEST FOOTNOTES #1 – PROPERTY CONTROL WEAKNESSES 2011: The Commission accepts the audit finding and recommendation. The Commission will review its controls over property to ensure equipment is properly and timely recorded and that all required reports are submitted timely.