FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
NEED FOR AUTOMATED SYSTEM TO DOCUMENT PAYROLL COSTS
The Agency had not completed development of its automated system to document
payroll cost allocations to various grant programs where individual employees’ wages
were chargeable to more than one grant program. The Agency began development of a
"time reporting system" (TRS) during fiscal year 1995. The TRS was to document
the proper allocation of payroll costs to the proper federal program; however, it was
subsequently determined that the TRS did not work as intended. Currently, the cost
allocation plan is prepared on a computer spreadsheet and is labor intensive. (Finding 2,
pages 16-17)
We recommended the Agency complete the development of a system to accumulate time and
effort information for employees who perform activities on multiple federal programs.
Agency officials concurred with our finding and recommendation and stated they use a
payroll allocation system that has been reviewed by the federal government and satisfies
all federal requirements, but the automated system being installed will enhance current
efforts and provide a more effective and efficient means of summarizing employee time and
effort information.
NEED FOR INTERNAL AUDIT PROGRAM AND MORE EFFCTIVE INTERNAL CONTROLS
The Agency had not fully implemented a program of internal auditing or maintained a
fully effective internal control system, as required by the Fiscal Control and Internal
Auditing Act. During testing, we noted many vouchers did not contain a purchase
requisition; some did not have original invoices with vouchers; and some did not contain a
receiving officer signature and date. While IEMA is a small agency, it expended $93
million of which 87% was for federal programs that require a high level of compliance.
Effective July 1 1997 through June 30, 1999, the Agency entered into a contract with an
accounting firm to perform internal audits and other services. The amount paid under this
contract for the two year period was approximately $147,000, of which about $30,000 was
for internal auditing. However, the internal audits completed did not encompass all major
system of internal control as required by State law. Some of the problems discussed in
this and other findings might have been identified and corrected if IEMA had a full scope
program of internal auditing. (Finding Code 3, pages 18-19) This finding has been
repeated since 1993.
We recommended that the Agency continue to seek authorization and funding for an
internal audit program.
Agency officials concurred with our finding and recommendation and stated the Director
had established and staffed a full time internal auditor position on January 1, 2000 to
review systems most critical to Agency operations. The Agency believes that an internal
auditor will assist with the continued reduction of findings for future audits. (For
previous agency responses, see Digest footnote #1)
OTHER FINDINGS
The remaining findings deal with timeliness of employee evaluations and monitoring
of subrecipients and were being given attention by the Agency. We will review progress
toward implementing all recommendations in our next audit.
AUDITORS’ OPINION
Our auditors state that the financial statements for the Illinois Emergency
Management Agency as of June 30, 1999 and 1998 and for the years then ended are fairly
presented in all material respects.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:KMC:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were Olive, LLP.
DIGEST FOOTNOTES
#1 NEED FOR INTERNAL AUDIT PROGRAM AND MORE EFFECTIVE INTERNAL CONTROLS – PREVIOUS
AGENCY RESPONSES
1997: We agree. The Agency has implemented an internal auditing plan as
reviewed and approved by the director. This plan consists of the appropriate review of
internal controls, submission of appropriate certification to the Auditor General and
testing of areas as specified in the approved auditing plan.
1995: We Agree. IEMA will continue to seek authorization and funding for an internal
auditing program. The Agency will request that this function be performed by Central
Management Services until we are able to secure the staff needed to perform this function
effectively.
1993: The Agency has contacted the Department of Central Management Services to
establish a more thorough program of internal control. DCMS has verbally agreed to assist.
Previously, the annual certification to the Auditor General was used to determine the
status of findings related to previous external audits.
