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REPORT DIGEST
GOVERNOR’S OFFICE OF
MANAGEMENT AND BUDGET
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this audit 12 Total last audit 7 Repeated from last audit 6 Release Date: May 27, 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 the
Full Report are also available on the worldwide web at http://www.auditor.illinois.gov |
SYNOPSIS
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The Office did not exercise adequate controls over contractual
agreements.
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The Office did not exercise adequate control over its interagency
agreements and related travel expenditures.
·
The Office did not exercise adequate control over its travel
functions.
·
The Office personnel files did not contain all required information.
·
The Office did not maintain sufficient controls over the recording
and reporting of State property.
·
The Office did not fully comply with annual financial reporting
requirements set forth by continuing disclosure undertakings.
·
The Office did not comply with provisions of the Accountability for
the Investment of Public Funds Act.
·
The Office did not exercise adequate control over its Cash Management
Improvement Act Annual Report. Expenditures and Activity Measures are summarized on the reverse page.} |
GOVERNOR’S OFFICE OF MANAGEMENT AND BUDGET
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2007
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EXPENDITURE
STATISTICS |
FY07 |
FY06 |
FY05 |
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Total Expenditures (All Treasury Held Funds)......................... |
$308,465,060 |
$307,569,832 |
$284,463,135 |
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Total
Appropriated Funds...................... %
of Total Expenditures................. Personal
Services..................................... % of Total Appropriated Funds........... Average No. of Employees................. |
$305,487,949 99.03% $1,956,711 .64% 47 |
$306,255,969 99.58% $2,025,764 .66% 49 |
$283,977,134 99.80% $1,918,465 .67% 46 |
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Other Payroll Costs (FICA, Retirement).... % of Total Appropriated Funds........... |
$377,273 .12% |
$307,738 .10% |
$448,048 .16% |
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General and Administrative Expenditures... % of Total Appropriated Funds........... |
$521,033 .17% |
$430,488 .14% |
$563,929 .20% |
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Expenditures necessary for sale of State bonds........................................ % of Total Appropriated Funds........... |
$909,788 .30% |
$1,162,984 .38% |
$1,106,866 .39% |
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Expenditures pursuant to the Build Illinois Bond Act................................. % of Total Appropriated Funds........... |
$287,871,318 94.23% |
$288,480,514 94.20% |
$266,084,415 93.70% |
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$13,848,481 4.52% |
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Total
Non-Appropriated Funds.............. %
of Total Expenditures................. Interest
liability on federal funds................ % of Total Non-Appropriated Funds.... |
$2,977,111 .97% $2,977,111 100% |
$1,313,863 .42% $1,313,863 100% |
$486,001 .20% $486,011 100% |
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Cost
of Property and Equipment................
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$338,535 |
$334,645 |
$398,672 |
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SELECTED ACTIVITY MEASURES (Not Examined) |
FY
2007 |
FY
2006 |
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Amount of General Obligation and Build
Illinois Bonds Issued....................................................................... |
$1,487,000,000 |
$2,414,950,000 |
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AGENCY DIRECTOR |
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During Audit Period: Mr. John Filan (through 1/17/07); Ms. Ginger Ostro (effective 1/18/07) Currently: Ms. Ginger Ostro |
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Problems with
contracts tested totaling $7,256,194 Inadequate
documentation maintained Agency improperly
paid $29,330 Contract Documents
were not properly completed Contracts not filed
with State Comptroller’s Office
GOMB agrees with
auditors Employees
reimbursed for travel expenses totaling $5,093 that should have been
reimbursed by other State agencies Interagency
agreements not signed or signed timely
GOMB agrees with
auditors
Lack of control
over travel expenditures resulted in overpayment of $1,579
GOMB agrees with
auditors Performance
evaluations not documented
Salary adjustments
not properly documented and/or authorized GOMB agrees with
auditors $64,700 of
transfers reported as deletions
Items totaling
$10,129 not reported GOMB agrees with
auditors
Office did not
submit financial statements as required GOMB agrees with
auditors
Investment
information not posted online
GOMB agrees with
auditors Supporting
documentation not maintained for direct cost claims
GOMB agrees with
auditors |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INADEQUATE CONTROL OVER CONTRACTUAL AGREEMENTS
The Office did not exercise adequate controls over
contractual agreements.
We tested 21 contracts totaling $7,256,194 and noted in
certain instances the Office did not bid out professional services contracts
in excess of $20,000, failed to publish its notices of intent to enter into
sole source contracts, and did not timely publish notices of contracts let or
awarded in the Illinois Procurement Bulletin.
Of the 21 contracts tested, 15 were awarded through the
competitive selection process and we noted the Office did not maintain
adequate documentation of its request for proposal and contract award
processes. We noted the Office did
not award contracts to the bidders with the highest scores based on criteria
set forth in the RFP, scoring sheets could not be located or did not contain
all pertinent information, proposals were not scored in a consistent manner
and in one instance, a proposal was given higher than the maximum allowable
points for a specified criterion.
The Office entered into interagency agreements for 11 of the
21 contracts tested and we noted in certain instances interagency agreements
were not signed by all parties prior to the performance of services under the
associated contract. In one instance,
the Office reimbursed a contractor for expenses incurred totaling $29,330
although another State agency was responsible for the costs incurred by the
contractor.
We also noted 17 of 21 Contract Obligation Documents (COD)
were not properly completed as the CODs included inaccurate award code
information, were prepared with inaccurate or missing compensation
information, were not submitted timely, did not contain an authorization
signature and date and did not include the correct inception date of the
contract.
Lastly, we were unable to determine if 7 of 21 contracts
tested, totaling $377,495, were approved prior to the performance of services
under the contract as the signature dates were absent. In addition, we noted 2 of 21 contracts,
totaling in excess of $45,002, were not filed with Illinois Office of the
Comptroller and we were unable to determine if the Office should have obtained
additional signatures and approval for 1 of 21 contracts tested as the
contact was for services to be rendered on an hourly basis, but the contract
did not specify a maximum number of hours or dollar amount for the services. (Finding 1, pages 12-15) |