REPORT DIGEST

 

OFFICE OF THE GOVERNOR

 

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                        4

Total last audit                        0

Repeated from last audit         0

 

Release Date:

May 6, 2004

 

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

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

 

 

 

SYNOPSIS

 

  • Liability insurance certificates were not updated on an
    on-going basis.
  • Approval of contracts was not timely.

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

                                              OFFICE OF THE GOVERNOR

 

                                                   COMPLIANCE AUDIT

                                       For The Two Years Ended June 30, 2003

 

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Funds)

$8,155,288

$9,803,712

$9,927,466

OPERATIONS TOTAL

% of Total Expenditures

$8,095,828

99.3%

$9,761,538

99.6%

$9,927,466

100.0%

Personal Services

% of Operations Expenditures

No. of Employees at June 30

$5,454,607

67.4%

81

$6,664,225

68.3%

124

$6,606,994

66.6%

126

Other Payroll Costs (FICA, Retirement)

% of Operations Expenditures

$1,076,694

13.3%

$1,395,687

14.3%

$1,379,802

13.9%

Contractual Services

% of Operations Expenditures

$668,940

8.3%

$728,261

7.4%

$816,568

8.2%

Telecommunications

% of Operations Expenditures

$342,755

4.2%

$279,444

2.9%

$324,147

3.3%

Electronic Data Processing

% of Operations Expenditures

$108,555

1.3%

$113,587

1.2%

$202,934

2.0%

Celebrations, Receptions & Events

% of Operations Expenditures

$65,119

0.8%

$89,858

0.9%

$105,870

1.1%

Executive Mansion Trust Fund

% of Operations Expenditures

$97,886

1.2%

$172,143

1.8%

$122,881

1.2%

Transition

% of Operations Expenditures

$25,204

0.3%

$0

0%

$0

0%

All Other Operations Items

% of Operations Expenditures

$256,068

3.2%

$318,333

3.2%

$368,270

3.7%

GRANTS TOTAL

% of Total Expenditures

$59,460

0.7%

$42,174

0.4%

$0

0%

! Cost of Property and Equipment

$7,262,280

$7,263,957

$7,785,901

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

! Illinois Executive Mansion Trust Fund:

Proceeds from Private Event Activities

 

$88,796

 

$132,790

 

$134,335

! Cash Receipts - Proceeds from grants

$0

$106,223

$0

AGENCY DIRECTOR(S)

During Audit Period: Honorable Rod R. Blagojevich, Governor (1-14-03 - present), Honorable George H. Ryan, Governor (7/1/01 - 1/13/03)

Currently: Honorable Rod R. Blagojevich, Governor

 

 

 

 

 

 

 

 

 

 

 

Liability insurance certifications not updated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Untimely approval of contracts

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO ANNUALLY UPDATE LIABILITY INSURANCE CERTIFICATES

The Office did not obtain updated liability insurance certificates from employees who were issued state vehicles.

The Liability Insurance Certificates on file for 9 of 34 (26%) employees that were tested were those that were obtained by the Office at the time when these employees were hired.

The Illinois Vehicle Code requires the certification to be filed during July of each year or within 30 days of any new assignment of vehicle.

We recommended the Office obtain completed and signed certifications of automobile liability insurance on an ongoing basis from every employee with assigned state vehicles as required by the State statute. (Finding 1, page 9)

The Office agreed with our recommendation and stated they have taken all necessary action to correct the problem. Insurance certificates are now renewed at the beginning of each fiscal year. They stated the previous administration was not aware that insurance certificates were required to be reviewed on a yearly basis.

CONTRACTS NOT APPROVED TIMELY

The Office did not have its contracts with vendors approved on a timely basis. Four of the 27 (15%) contracts tested were signed for approval after the contract start date as follows:

  • A contract for photo processing totaling $17,000 began approximately 30 days before the contract was approved.
  • A contract for laundry services for the Governorís Mansion totaling $14,000 began approximately 11 days before the contract was approved.
  • A contract for reserved parking spaces totaling $4,060 began approximately 10 days before the contract was approved.
  • A contract for legal services totaling $17,200 began approximately 8 days before the contract was approved.

We recommended the Office improve its policies and procedures with regards to contract processing and approval. The Office should ensure that contracts are signed prior to their inception. (Finding 3, page 12)

The Office agreed with our recommendation and is taking steps to ensure that contracts are approved prior to their inception.

OTHER FINDINGS

The remaining two findings and recommendations are less significant and are reportedly being given attention by the Office. We will review progress towards the implementation of our recommendations during the Office's next audit.

The responses to our findings and recommendations were provided by Janice Taylor Brown, Fiscal Director.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

SPECIAL ASSISTANT AUDITORS

E.C. Ortiz & Co. were our special assistant auditors for this audit.