REPORT DIGEST

EXPENDITURE STATISTICS	FY 2003	FY 2002	FY 2001
! Total Expenditures (All Funds)	$1,346,630	$1,332,623	$1,351,084
OPERATIONS TOTAL % of Total Expenditures Personal Services % of Operations Expenditures Average No. of Employees	$1,346,630 100% $966,889 71.8% 19	$1,332,623 100% $932,269 69.9% 20	$1,351,084 100% $944,879 70.0% 19
Other Payroll Costs (FICA, Retirement) % of Operations Expenditures	$209,324 15.5%	$200,045 15.0%	$193,647 14.3%
Contractual Services % of Operations Expenditures	$125,560 9.3%	$137,555 10.3%	$113,575 8.4%
All Other Items % of Operations Expenditures	$44,857 3.4%	$62,754 4.8%	$98,983 7.3%
Cost of Property and Equipment (unaudited)	$340,536	338,648	$336,338

EXECUTIVE DIRECTOR

Executive Director (05/16/03 to Current) Mr. James Sledge

Acting Executive Director (12/16/02 to 05/15/03) Ms. Roma Larson

Executive Director (08/01/01 to 12/15/02) Ms. Katherine Parker

Acting Executive Director (07/01/01 to 07/31/01) Ms. Roma Larson

64% of the property items did not have an acquisition date or value

Records could not be audited

Administrative and financial reports filed late

Insufficient controls over federal funds

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

Insufficient Property and Equipment Procedures

The Commission’s property and equipment procedures were insufficient to ensure the proper accounting and safeguarding of State assets. During our review of property and equipment, we noted the following:

The Commission did not provide adequate documentation for its property and equipment values.

The Commission’s detailed property and equipment listing did not contain acquisition date or cost for 429 out of 672 (64%) property items.

The Commission’s ending balances reported on the Agency Report of State Property could not be reconciled to the detailed property and equipment records, and additions and deletions of items were not reported.

Five of 25 (20%) items tested were included on the Commission detailed property listing; however, the Commission no longer maintained the items. (Finding 3, page 10-11)

The Commission’s Property and Equipment Schedule contained approximately $340,000 and $339,000 in property and equipment at June 30, 2003 and 2002, respectfully. Due to the inability to support the values of the property and equipment amounts recorded, these amounts could not be audited.

We recommended the Commission conduct a thorough investigation to locate the documentation to determine the historical cost and implement controls to ensure accurate reporting of State property.

The Commission acknowledged and stated they would work with the Department of Central Management Services and the Office of the Comptroller to establish the value of the property and equipment items.

Late Reporting of Administrative and Financial Reports

The Commission did not submit administrative and financial reports to the various reporting agencies in a timely manner. We noted the following:

One out of ten (10%) Statement of Economic Interest Statements was filed 15 days late.

The annual review of the internal controls required to be filed with the Office of the Auditor General was 92 and 41 days late for fiscal years 2002 and 2003.

The Quarterly Reports of State Property to be filed with the Office of the Comptroller were 1 to 19 days late.

The Commission did not file the Real Property Utilization Report with the Department of Central Management Services.

The Commission filed their fiscal year 2003 Compensated Absences Report 27 days late with the Office of the Comptroller.

The Commission filed their fiscal year 2003 lease information 6 days late with the Office of the Comptroller.

The Commission did not file Travel Headquarters Reports (TA-2) with the Legislative Audit Commission for fiscal years 2002 and 2003.

We recommend the Commission develop and implement controls to ensure the timely reporting with the appropriate agencies. (Findings 2 and 4, pages 12-13 and 15)

The Commission acknowledged and stated a reporting schedule had been implemented.

Inadequate Controls over Federal Funds

The Commission did not maintain sufficient internal controls over federal trust funds.

The Federal Trust Fund (#0351-State Legalization Impact Assistance Grant) had been inactive for over 18 months. The Commission had not notified the Office of the Comptroller regarding the inactive account. Approximately $30,284 was in this fund.

The State Finance Act (30 ILCS 105/5(c)) mandates special funds in the State Treasury, which have been inactive for 18 months or longer, should automatically be terminated and the balance remaining transferred by the Comptroller to the General Revenue Fund.

The Commission's management stated they were not aware that the Office of the State Comptroller should be notified of dormant funds.

We recommend the Commission notify the Office of the Comptroller regarding the inactive federal funds. (Finding 5, page 16)

Commission officials acknowledged the condition and stated they have notified the Office of the State Comptroller.

Other Finding

The remaining finding involved the lack of segregation of duties. We will review progress toward implementation of all recommendations during our next audit.

Mr. Jack Pearce, Fiscal Officer, provided the Commission’s responses.

___________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were DeRaimo Hillger & Ripp.

SELECTED ACTIVITY MEASURES	FY 2003	FY 2002	FY 2001
Average Number of Administrative Judges at Year End Average Administrative Judge Caseload	7 99	7 107	6 134
! Total Complaints Filed or on File	1,028	1,013	1,211
! Cases Completed	333	266	442
! Open Cases at Fiscal Year End	695	747	769