REPORT DIGEST

 

DEPARTMENT OF EMPLOYMENT SECURITY

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

 

Summary of Findings:

Total this year

- Financial Audit 1*

- Compliance Audit 3

                                            4

Total last year

- Financial Audit 0*

- Compliance Audit 8

                                            8

Repeated from last year

- Financial Audit 1*

- Compliance Audit 2

                                            3

*Financial Audit Previously Released

 

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

 

 

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

        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

 

SELECTED ACTIVITY MEASURES

FY 2007

FY 2006

FY 2005

         Total Receipts (All Treasury Held Funds).....

         Expenditures of Federal Awards (000s).....

         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

AGENCY DIRECTOR(S)

 

 

 

During Audit Period: Mr. James P. Sledge (3/5/07 to current); Ms. Brenda Russell (7/1/06 to 3/5/07)

Currently: Mr. James P. Sledge

 


 

 

 

 

 

 

 

 

 

 

 

 

 


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.