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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INADEQUATE INTERNAL CONTROLS OVER TRAVEL
The Department did not maintain adequate
internal controls over travel. We noted
the following weaknesses:
·
Employees who were personally assigned State vehicles
did not provide certifications of liability insurance coverage extending to
the employee when the assigned vehicle is used for other purposes than
official state business.
·
Reimbursements
were made for expenses between the employees’ residence and
headquarters. We noted 2 of 25 (8%)
employees were reimbursed a total of $48 for commuting expenses incurred
between the employees’ residences and headquarters.
·
Employee
controlled housing reimbursements exceeded the monthly limits. We noted 3
months where one employee’s reimbursements for employee controlled housing
exceeded the monthly limit by a total of $83.
·
The report for vehicle personal use for income
reporting was inaccurate. We noted 1 of 10 (10%) employee’s report for
vehicle personal use for income reporting was understated by $190.
·
Travel vouchers
did not agree to supporting documentation. We noted the activities reported
on one employee’s itinerary and travel destinations reported on the same
employee’s travel vouchers did not agree to the employee’s gas receipts and
the mileage accumulated on his State vehicle. In many instances, the
itinerary would not include information regarding a trip, yet gas was
purchased at various locations for the employee’s State vehicle. In addition, the mileage accumulated on
the employee’s State vehicle exceeded standard miles for the destinations as
noted on the corresponding travel vouchers and itineraries.
·
An employee was reimbursed twice for the same expense
incurred. We noted the employee was reimbursed $15 twice for the same car
wash. (Finding 1, page 9-12)
We recommended
the Department:
·
Require State employees
who are assigned vehicles provide certification of liability insurance
coverage extending to the employee when the assigned vehicle is used for
other than official State business;
·
Follow the Governors
Travel Control Board and Travel Regulation Council regulations and Internal
Revenue Service regulations;
·
Enhance internal
controls for reviewing and reporting use of state vehicle for personal use to
ensure accurate income and tax reporting;
·
Implement
adequate internal controls over payments of travel;
·
Compare
reimbursement requests received with previous reimbursement requests to
ensure duplicate payments are not issued; and
·
Obtain
reimbursements from employees where overpayments were made.
Department
officials agreed with our finding and recommendations.
NONCOMPLIANCE WITH THE STATE OFFICIALS AND
EMPLOYEES ETHICS ACT
The
Department did not maintain time sheets in compliance with the State
Officials and Employee Ethics Act (Act).
The Act requires
the Department to adopt personnel policies consistent with the Act. The Act
states, “The policies shall require State employees to periodically submit
time sheets documenting the time spent each day on official State business to
the nearest quarter hour.”
We noted employees were required
to complete a Daily Attendance sheet that stated the time arriving and
leaving the office. However, the time sheets did not document the time spent
each day on official State business to the nearest quarter hour. (Finding 2,
page 13)
We recommended the Department
comply with the State Officials and Employees Ethics Act by requiring
employees to periodically submit time sheets recording time spent each day on
official State business to the nearest quarter hour.
Department officials agreed with the
finding and stated standard time sheet will be reviewed and revised to
include the appropriate language in order to comply with the required statute.
INADEQUATE CONTROLS OVER EMPLOYEE ATTENDANCE
The Department
did not exercise adequate controls over employee attendance. We tested 35
employees and noted the following:
·
For the four months tested, 12 (34%) employees’
Monthly Attendance Reports did not correctly reflect their Daily Attendance
Reports. We noted 34 instances where adjustments to the employee’s accrued
leave time records for absences from work were made between 2 and 87 days
after the 30-day period following the absence. Auditors deemed 30 days as a reasonable period in which to make
adjustments.
·
The Department did not enforce its policy which
requires employees to submit hand-written Employee Daily Attendance
Reports. We noted 28 instances where
the Department accepted semi-monthly computer-generated reports from
employees, which is inconsistent with the Department’s policy as stated in
the Department’s Employee Handbook. (Finding 3, page 14-15)
We
recommended the Department implement the necessary controls in order to
maintain accurate daily attendance records in compliance with the Illinois
Administrative Code. Further, the Department should maintain adequate
controls over personnel working in this area to ensure that proper care is
taken to record the time correctly and to help reduce the number of
adjustments needed. In addition, the Department should update their employee
handbook to reflect current timekeeping procedures.
Department officials agreed with the
finding and stated current timekeeping procedures were reviewed with responsible
staff and controls would be implemented to perform monthly reviews of time
sheets and corresponding leave requests.
NEED
TO IMPROVE REVIEWS OF STATEMENTS OF ECONOMIC INTERESTS
The
Department did not review statements of economic interest in compliance with
the State Officials and Employee Ethics Act (5 ILCS 430/20-23). In addition,
the Department did not notify the Secretary of State of all employees whose
position subjected them to the requirements to file economic interest
statements in compliance with the Illinois Governmental Ethics Act (5 ILCS
420/4A-101(f)(1) and (7)).
We
noted the Department’s Ethics Officer did not review the 2005 and 2006
Statements of Economic Interests for employees in all divisions of the
Department, including the Manteno Veterans’ Home, Quincy Veterans’ Home,
LaSalle Veterans’ Home, Anna Veterans’ Home, Central Office, State Approving
Authority, and the Field Services before they were filed with the Secretary
of State. We also noted two employees
at the Quincy Veterans’ Home and five employees from the Manteno Veterans’
Home were omitted from the list of employees required to file statements of
economic interest. (Finding 4, page 16-17)
We
recommended the Department comply with the State Officials and Employees Ethics
Act by requiring the ethics officer to review the statements of economic
interest before they are filed with the Secretary of State. Further, the Department should
periodically review job duties and personnel transactions to ensure all
required employees file economic interest statements with the Secretary of
State.
Department officials agreed with the
finding and stated for FY2007 the Ethics Officer has sent out an
instructional memo to employees to return the statement of economic interest
directly to the Ethics Officer for review. In addition, the Ethics Officer is
receiving monthly updates on changes in employees whose position subjects
them to the requirement to file economic interest statements. The Ethics
Officer is notifying the Secretary of State of those changes as required.
OTHER FINDINGS
The
remaining findings pertain to 1) untimely and incomplete staffing
standards reports, 2) failure to establish a Veterans’ Memorial Commission,
3) Department inaccurately compiled and reported the activities of its
Veterans’ Service Officers, and 4) Lack of Disaster Recovery Plan. We will
follow up on these findings during our next examination of the Department.
AUDITORS’ OPINION
We conducted a compliance examination of the Department as required by
the Illinois State Auditing Act. We
have not audited any financial statements of the Department for the purpose
of expressing an opinion because the Department does not, nor is it required
to, prepare financial statements.
___________________________________
WILLIAM
G. HOLLAND, Auditor General
WGH: GSR:pp
ASSIGNED AUDITORS
The Auditor
General’s staff performed this compliance examination.
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