EDUCATIONAL LABOR RELATIONS BOARD
For the Two Years Ended: June 30, 2011
Release Date: April 26, 2012
Summary of Findings:
Total this audit: 2
Total last audit: 4
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
• The Educational Labor Relations Board did not employ the minimum number of staff as required by the Educational Labor Relations Act.
• The Educational Labor Relations Board had an inadequate segregation of duties in the areas of payroll, expenditure control, State property, and receipt processing.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
FAILURE TO EMPLOY REQUIRED STAFF
The Educational Labor Relations Board did not employ the minimum number of staff as required by the Educational Labor Relations Board Act (Act). The Board did not employ a minimum of 8 attorneys and 5 investigators. As of June 30, 2011 the Board employed 6 attorneys and 2 investigators. (Finding 1, page 9)
We recommended the Board comply with the Act’s requirements for attorneys and investigators or seek legislative remedy to the statutory requirements.
The Board agreed with the recommendation and stated this requirement was subject to the Board’s annual appropriation by the General Assembly and to date, no funds have been appropriated to hire additional staff.
NEED TO IMPROVE INTERNAL CONTROLS
The Board had an inadequate segregation of duties in the areas of payroll, expenditure control, State property, and receipt processing.
• One person had the authority to prepare and approve vouchers, maintain accounting records, enter transactions into the accounting system, and perform monthly reconciliations.
• One person had the authority to approve all property purchases, tag all inventory, maintain the property records, and complete the quarterly reports of State property.
• One person had the authority to prepare payroll, make adjustments to payroll, approve payroll, and distribute payroll stubs.
• One person had the authority to prepare receipts, deposit receipts, and maintain the receipts ledger. (Finding 2, page 10) This finding was first reported in 2007.
We recommended the Board implement procedures to ensure they maintain effective internal control over the record keeping and accounting duties concerned with expenditures, property control, payroll, and receipts.
The Board agreed with the recommendation and stated the inadequate segregation of duties finding continues because the Board has no authorized headcount or funding to hire an assistant fiscal officer or accountant. (For previous Board response, see Digest Footnote # 1.)
We conducted a compliance examination of the Educational Labor Relations Board as required by the Illinois State Auditing Act. The Educational Labor Relations Board has no funds that require an audit leading to an opinion of financial statements.
WILLIAM G. HOLLAND
The examination was conducted by staff of the Office of the Auditor General.
#1 - NEED TO IMPROVE INTERNAL CONTROLS
2009: Board officials agreed with the recommendation and stated they would continue to request authority to hire an accountant in the Springfield Office to segregate responsibilities.