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REPORT DIGEST
DEPARTMENT OF EMPLOYMENT
SECURITY
COMPLIANCE
EXAMINATION
For the Two Years Ended: June 30, 2007 Summary of Findings:
Release Date: May 20, 2008
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 is also available on the worldwide web at www.auditor.illinois.gov |
INTRODUCTION The Financial Statement Audit for the year ended June 30, 2007 was previously released on February 20, 2008. That audit contained one audit finding which pertained to significant deficiencies in internal control over financial reporting (number 1). This report addresses findings pertaining to the State Compliance Examination. In total, this document contains three audit findings (numbers 2-4). SYNOPSIS
¨ The Department did not execute its interagency agreements with other State agencies in a timely manner. {Expenditures and Activity Measures are summarized on the next page.} |
ILLINOIS
DEPARTMENT OF EMPLOYMENT SECURITY
COMPLIANCE
EXAMINATION
For The Two
Years Ended June 30, 2007
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EXPENDITURE STATISTICS |
FY 2007 |
FY 2006 |
FY 2005 |
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Total Expenditures (All Appropriated Funds).............................................. Personal Services....................................... % of Expenditures................................ Average
Number of Employees................ Personal
Services Cost per Avg. Employee Other
Payroll Costs (FICA, Retirement)... % of Expenditures................................ Contractual Services.................................. % of Expenditures................................ Unemployment Benefits to Former State Employees........................................... % of Expenditures................................ For Deposit into Title III Fund.................... % of Operations Expenditures.............. Telecommunications Services..................... % of Expenditures................................ Benefit Information System Redefinition...... % of Expenditures............................... All Other Expenditures............................... % of Expenditures............................... ·
Cost of Property and Equipment............ |
$208,780,587
$90,942,819 43.6% 1,715 $53,028 $37,488,431 18.0% $38,105,243 18.2%
$15,704,552 7.5% $10,000,000 4.8% $4,939,911 2.4% $4,708,338 2.2% $6,891,293 3.3% $26,286,083 |
$216,476,742
$88,895,747 41.1% 1,789 $49,690 $35,738,640 16.5% $38,045,444 17.6%
$20,725,254 9.6% $10,000,000 4.6% $5,244,690 2.4% $9,736,096 4.5% $8,090,871 3.7% $26,418,026 |
$214,279,492
$91,264,006 42.6% 1,899 $48,059 $44,067,349 20.6% $17,589,595 8.2%
$21,557,613 10.1% $10,000,000 4.7% $6,103,541 2.8% $6,957,305 3.2% $16,740,083 7.8% $27,303,087 |
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SELECTED ACTIVITY MEASURES |
FY 2007 |
FY 2006 |
FY 2005 |
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Total
Receipts (All Treasury Held Funds)..... ·
Expenditures
of Federal Awards (‘000’s)..... ·
State
Unemployment Rate at 3/31*.............. ·
National
Unemployment Rate at 3/31*......... ·
Initial
Claims – Unemployment Insurance*... ·
Job
Placement – Entered employment*........ ·
Job
Opening Received*............................... ·
Average
Benefit Paid per Client*................. ·
Average
Administrative Cost per Claimant*. *Not examined +Definition changed in FY
2006 |
$174,606,630 $1,984,376 5.3% 4.7% 686,500 212,100 54,900 $2,640 $180 |
$187,500,596 $1,908,570 4.4% 4.7% 691,000 254,500 53,300 $2,526 $176 |
$207,721,970 $2,175,205 5.9% 5.0% 731,100 128,200+ 45,300 $2,617 $173 |
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AGENCY DIRECTOR(S) |
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Agreements were signed 65 to 388 days
late Other agreements involved multiple
agencies Department management accepted
recommendation |
FINDING, CONCLUSION, AND RECOMMENDATIONS
INTERAGENCY AGREEMENTS NOT EXECUTED IN A TIMELY MANNER The Department did not execute
its interagency agreements with other State agencies in a timely manner. We reviewed 62 contracts and 9
interagency agreements and noted 7 of the interagency agreements (10%) whose
contract terms began prior to the completion of an executed agreement. The agreements were signed between 65 and
388 days late. Department management stated that
the four agreements for the utilization of leased space were not executed
timely due to delays by the partners in returning the signed agreements. The other three agreements that were not
executed timely involved multiple agencies where the corresponding master
agreements/contracts were not initiated by the Department. (Finding 2, pages 9-10) We recommended the Department
improve its process for timely executing interagency agreements. Department management accepted our recommendation and stated that the process itself must be reviewed and refined and that is now being done in conjunction with the Department of Commerce and Economic Opportunity. OTHER FINDINGS Other findings are reportedly being given
attention by Department management.
We will review progress toward implementation of our recommendations
during our next financial audit and compliance examination. ___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JAF:pp SPECIAL ASSISTANT AUDITORS McGladrey & Pullen, LLP were our special assistant auditors for this examination. |