REPORT DIGEST

 

ILLINOIS EMERGENCY MANAGEMENT AGENCY

 

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       3

Total last audit                       1

Repeated from last audit        1

 

Release Date:

April 27, 2004

 

 

 

 

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

SYNOPSIS

 
  • Employee performance evaluations were not completed in a timely manner.
  • Property control records were not accurately maintained.
  • Financial information related to grants was not correctly reported to the Office of the State Comptroller.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the next page.}

 

 

                                 ILLINOIS EMERGENCY MANAGEMENT AGENCY

 

                                                       COMPLIANCE AUDIT

                                            For the Two Years Ended June 30, 2003

 

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Funds)

$35,830,323

$22,922,235

$36,561,377

OPERATIONS TOTAL

% of Total Expenditures

$23,027,470

64.3%

$12,272,180

53.6%

$9,023,713

24.7%

Personal Services

% of Operations Expenditures

Average No. of Full-time Employees

$3,029,025

13.2%

66

$3,076,559

25.1%

70

$3,043,595

33.7%

72

Other Payroll Costs (FICA, Retirement)

% of Operations Expenditures

$643,744

2.8%

$721,975

5.9%

$704,803

7.8%

Contractual Services

% of Operations Expenditures

$389,643

1.7%

$397,541

3.2%

$356,001

4.0%

All Other Operations Items

% of Operations Expenditures

$18,965,058

82.3%

$8,076,105

65.8%

$4,919,314

54.5%

AWARDS AND GRANTS TOTAL

% of Total Expenditures

$12,627,608

35.2%

$10,505,647

45.8%

$25,519,721

69.8%

NON-APPROPRIATED FUNDS

% of Total Expenditures

$175,245

.5%

$144,408

.6%

$2,017,943

5.5%

! Cost of Property and Equipment

$3,103,000

$3,041,000

$3,075,000

SELECTED ACTIVITY MEASURES

FY 2003**

FY 2002*

FY 2001

• Railroad Incidents (derailments, accidents, etc.)

250

250

111

• Acquisitions (real property)

30

55

57

• Public Assistance Grants to Local Government

500

500

1,313

* Estimated

** Projected

 

 

 

AGENCY DIRECTOR

During Audit Period: Michael Chamness (7/1/01 to 3/19/03) William C. Burke (3/20/03 to current)

Currently: William C. Burke

 

 

 

 

 

 

 

 

 

 

 

 

Evaluations were 8 days to seven months late

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At least $291,275 of fixed assets were not recorded on property records timely

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Incorrect financial information submitted to the Office of the Comptroller

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

NEED TO COMPLETE EMPLOYEE PERFORMANCE EVALUATIONS ON A TIMELY BASIS

The Agency did not perform employee performance evaluations on a timely basis. During our testing, we noted 7 of 25 (28%) employee performance evaluations were performed 8 days to seven months late. The Agency is required by the Illinois Administrative Code to perform an employee evaluation not less than annually. (Finding Code 1, page 9) This finding has been repeated since 1997.

We recommended the Agency comply with the Illinois Administrative Code and ensure all evaluations are completed annually. (For previous Agency responses see Digest Footnote 1.)

Agency officials concurred stating that management will employ procedures to complete evaluations timely.

 

INACCURATE REPORTING OF FIXED ASSETS

The Agency did not maintain accurate property control records and filed inaccurate Quarterly Fixed Asset Reports with the Office of the State Comptroller. The Agency was unable to accurately determine their fixed asset inventory at June 30, 2003. Assets that were purchased during fiscal year 2003 by the Agency were not entered in the inventory system until after June 30, 2003. During our testing, we were able to verify that at least $291,275 of fixed assets should have been reported on the Agency’s inventory system but were not. The Agency is required by the State Property Control Act to maintain a permanent record of all property. (Finding Code 3, pages 12 and 13)

We recommend the Agency assign personnel to enter fixed asset transactions in a timely manner and review the information reported to the Office of the State Comptroller for reasonableness and accuracy.

Agency officials concurred stating all fixed assets are accounted for and entered into the Agency’s inventory records, and procedures have been implemented to ensure accurate accounting of fixed assets in the future.

 

NEED TO IMPROVE FINANCIAL REPORTING

The Agency did not correctly report financial information to the Office of the State Comptroller.

During our audit we noted:
  • The Agency reported subrecipient amounts incorrectly for 1 of 5 funds.
  • Cash receipts reported did not agree to Agency records for one fund.
  • Expenditure amounts reported did not agree to the Agency’s supporting documentation for two funds. (Finding Code 2, page 10 and 11)

We recommended the Agency comply with the Comptroller’s Statewide Accounting Management System Procedures Manual (SAMS Manual) to ensure accurate financial information is submitted to the Office of the State Comptroller. Also, the Agency should review and revise as necessary its current system used to gather and document the financial information that will be reported in the Office of the State Comptroller generally accepted accounting principles (GAAP) Reporting Package forms. Further, the Agency should seek to obtain appropriate training in the preparation of GAAP Reporting Package forms.

Agency officials agreed with our recommendations.

 

AUDITORS’ OPINION

We conducted a compliance audit of the Agency as required by the Illinois State Auditing Act. We have not audited any financial statements of the Agency for the purpose of expressing an opinion because the Agency does not, nor is it required to, prepare financial statements.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLD:pp

 

SPECIAL ASSISTANT AUDITORS

BKD, LLP were our special assistant auditors for this audit.

 

DIGEST FOOTNOTE

#1 NEED FOR EMPLOYEE PERFORMANCE EVALUATIONS TO BE PERFORMED TIMELY – PREVIOUS AGENCY RESPONSES

2001: We agree. Agency management recognizes the importance of completing the evaluations and will strive to ensure that the evaluations are completed timely.

1999: We concur. Toward the end of the audit period, Agency management implemented new policies and procedures designed to ensure employee evaluations are conducted in a timely manner.

1997: We agree. All evaluations will be completed on a timely basis. The Personnel Officer will develop a procedure to insure that managers complete evaluations timely.