REPORT DIGEST

ILLINOIS BOARD OF EXAMINERS

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2005

Summary of Findings:

Total this audit                          2

Total last audit                      N/A

Repeated from last audit       N/A

Release Date:

February 16, 2006 

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 is also available on

the worldwide web at

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

INTRODUCTION

      The report of the Illinois Board of Examiners for the year ended June 30, 2005 constitutes the first separate Examination of the Board.  In prior years, Board information was included within the University of Illinois audit report.

SYNOPSIS

¨      The Board was not staffed at a total of 11 examiners as required by the Illinois Public Accounting Act.

¨      The Board did not prepare and file all required reports and did not require its employee to periodically submit time sheets documenting time spent on official State business.

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

CPA EXAMINATION TRUST ACCOUNT

FY 2005

     Balance at July 1 .................................................................................

$2,761,721

         Receipts

           Fees..........................................................................................................

           Interest Income.........................................................................................

$1,103,580

$62,564

      Disbursements................................................................................................

$1,005,485

      Balance at June 30........................................................................................  

$2,922,380

     Cost of Property and Equipment..................................................................

$98,063

SELECTED ACTIVITY MEASURES

(Not Examined)

FY 2005

FY 2004

(January 1 – June 30)

CBT

FY 2004

(July 1 – December 31)

P&P

Average pass rates by section

·         Auditing (AUD)....................................

·         Business Environment and Concepts (BEC).................................................

·         Financial Accounting Reporting (FAR)....

·         Regulation (REG)..................................

Number of candidates that passed the Uniform CPA Exam......................................................

First-time candidates for exam..........................

47.6%

53.4%

46.7%

43.7%

1,006

2,001

59%

63%

56%

59%

167

1,160

40%

40%

34%

33%

772

876

EXECUTIVE DIRECTOR

     During Audit Period:  Joanne Vician

     Currently:  Joanne Vician

Reports not prepared or filed and employee not required to periodically submit time sheets documenting time spent on official State business

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

BOARD NOT STAFFED AS REQUIRED

      The Illinois Board of Examiners (Board) was not staffed at a total of 11 examiners as required by the Illinois Public Accounting Act.  For all 12 months of the engagement period, the Board was not comprised of the two public members required by the Act and for 5 of 12 months of the engagement period, a vacancy occurred for one Certified Public Accountant examiner.   

      We recommended the Board continue to work with the Governor’s Office to ensure the Board vacancies are filled in a timely manner.  (Finding 1, page 7)

      Board officials stated the Board will continue to make annual recommendations to the Director of Boards and Commissions.

PROCEDURAL DEFICIENCIES

      The Illinois Board of Examiners did not prepare and file several reports as required during FY05.  In addition, the Board did not require its only employee to periodically submit time sheets documenting the time spent on official State business. We noted the following reports were not prepared or filed as required:

·        The Fiscal Control and Internal Auditing Act certification was not prepared or filed with the Office of the Auditor General.

·        The Agency Workforce Report was not prepared or filed with the Office of the Governor or the Office of the Secretary of State.

·        The Travel Headquarter Reports were not prepared or filed with the Legislative Audit Commission.

·        The Fee Imposition Report was not prepared and filed with the Office of the State Comptroller.

·        The Quarterly Agency Reports of State Property were not prepared and filed with the Office of the State Comptroller nor was the annual physical inventory report prepared and filed with the Department of Central Management Services. 

      We recommended the Board ensure all required reports be filed with the appropriate parties on a timely basis and require its employee to periodically submit time sheets documenting the time spent each day on official State business.  (Finding 2, pages 8-9)

      Board officials stated the Board will comply with the recommendation to rectify the procedural deficiencies and will meet the deadlines and reporting frequencies as prescribed.  In addition, the Board will keep documentation of all reports submitted and any response to those reports. 

AUDITORS’ OPINION

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

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

AUDITORS ASSIGNED

      The compliance examination was conducted by the Auditor General’s staff.