REPORT DIGEST

DEPARTMENT OF
HUMAN RIGHTS

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

 

Summary of Findings:

Total this audit                  6

Total last audit                  7

Repeated from last audit   4

 

Release Date:

April 1, 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

Attn:  Records Manager

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

·        The Department did not maintain adequate financial records or prepare accurate accounting reports.

 

·        The Department did not meet the procedural time limits set forth when a charge of a civil rights violation had been filed.

 

·        The Department did not have adequate controls over voucher processing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

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

 

 

 


DEPARTMENT OF HUMAN RIGHTS

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2007

 

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

 

·         Total Expenditures (All Funds)..................................

 

OPERATIONS TOTAL................................................

         % of Total Expenditures.............................................

 

         Personal Services.......................................................

            % of Operations Expenditures..................................

            Average No. of Employees......................................

 

         Other Payroll Costs (FICA, Retirement and Group          Insurance)..............................................................

            % of Operations Expenditures..................................

 

         Contractual Services...................................................

            % of Operations Expenditures..................................

 

         Lump Sums and other Purposes...................................

            % of Operations Expenditures..................................

 

         All Other Operations Items........................................

            % of Operations Expenditures..................................

 

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

 

$9,857,339

 

$9,857,339

100%

 

$6,775,423

68.7%

158

 

 

$1,608,649

16.3%

 

$340,577

3.5%

 

$853,795

8.7%

 

$278,895

2.8%

 

$938,896

 

$8,357,013

 

$8,357,013

100%

 

$6,269,342

75.0%

133

 

 

$1,200,103

14.3%

 

$540,276

6.5%

 

$148,797

1.8%

 

$198,495

2.4%

 

$912,973

 

$8,804,022

 

$8,804,022

100%

 

$6,203,841

70.4%

147

 

 

$1,689,759

19.2%

 

$386,797

4.4%

 

$156,440

1.8%

 

$367,185

4.2%

 

$946,262

 

 

 

 

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2007

FY 2006

FY 2005

Open Discrimination Cases as of 6/30...................................

3,412

3,131

2,779

New Discrimination Cases Filed...........................................

3,385

3,555

3,791

Cases Completed during year...............................................

2,897

3,240

3,567

Charges Completed per Month per Investigator.....................

6.7

7.5

8.0

Investigators employed at end of year...................................

30

33

35

 

AGENCY DIRECTOR(S)

During Audit Period:      Mr. Rocco Claps

Currently:                      Mr. Rocco Claps


 

 

 

 

 

 

 

 

 

Failure to maintain adequate financial records or prepare accurate accounting reports for submission to the Office of the State Comptroller

 

 

 

 

 

 

Accounts Receivable and Deferred Revenue Reporting Problems

 

 

 

Persistent Issue since 1997

 

 

 

 

 


Agency agrees with auditors

 

 

 

 

 

 

 

 

 

 

Failure to meet the procedural time limits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency agrees with auditors

 

 

 

 

 

 

 

 

 


Vouchers not approved within 30 days

 

 

 

Interest due to Vendors not paid

 

 

 

 

 

 

 

Persistent Issues since 1995

 

 

 

 

 

 

 

Agency Agrees with Auditors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

 

INADEQUATE FINANCIAL REPORTING

 

      The Department of Human Rights did not maintain adequate financial records or prepare accurate accounting reports for submission to the Illinois Office of the Comptroller.  The Department did not keep adequate records, schedules, or reconciliations to support grant/contract data, accounts receivables, and deferred revenues.

 

In our review of  the Generally Accepted Accepted Accounting Principles (GAAP) Packages (accounting reports) submitted to the Comptroller’s Office, we noted:

 

  • As of June 30, 2006, accounts receivable were understated by $416,132 and deferred revenues were overstated by $61,500.

 

  • As of June 30, 2007, accounts receivables and deferred revenues were overstated by $795,090 and $1,224,000, respectively.

 

      The Department’s books and records were maintained using the balances in the Comptroller’s appropriation reports which is on a cash basis of accounting. As part of the year-end closing process, State Agencies are required to prepare adjustments to convert to the accrual basis of accounting and submit to the State Comptroller their GAAP Reporting Packages which summarize their yearly financial activities and the status of their funds at year-end. (Finding 1, pages 9-10)  This finding, or variations thereof, has been repeated since 1997.

 

      Department Officials agreed with our recommendation to keep adequate records, schedules, and reconciliations to support grant/contract data, accounts receivables, and deferred revenues so that accurate “GAAP Reporting Packages” can be prepared in the future.  (For previous agency response, see Digest Footnote 1.)

 

 

NONCOMPLIANCE WITH STATUTORILY MANDATED TIME LIMITS

 

The Department of Human Rights did not meet the procedural time limits set forth when a charge of a civil rights violation had been filed.

 

In our review of 30 cases filed with the Department (15 employment cases and 15 housing cases), we noted:

 

·        in two employment cases, the Department did not serve a copy of the charge on the respondents within 10 days (6-7 days late);

 

·        in one housing case the Department did not serve a copy of the charge on the respondent within 10 days of when the charge was filed (21 days late).

 

Department management stated that the untimely issuance of notices was due to lack of personnel and numerous cases filed in the Charge Processing Division. (Finding 2, page 11)

 

We recommended that the Department adhere to the processing timetable as mandated by the Illinois Human Rights Act.

 

Department officials stated they will adhere to this recommendation.

 

INADEQUATE CONTROLS OVER VOUCHER PROCESSING

     

The Department of Human Rights did not have adequate controls over voucher processing.  

 

In our review of 263 vouchers, some of the problems we noted were:

 

-         Seventy-four (28%) of vouchers tested totaling $130,850 were approved more than 30 days after receipt of the vendors invoice (1 to 437 days late).

 

-         Forty-five (17%) vouchers totaling $44,695 were paid 1 to 103 days late. Interest totaling $197 for 12 vouchers was paid to vendors upon request and interest totaling $297 for three vouches was due but not paid.

 

-   Other problems noted involved late payments to other State agencies, two travel vouchers submitted 111 and 131 days after completion of travel, and voucher amounts improperly charged to different fiscal years. (Finding 4, pages 14 -16)  This finding has been repeated since 1995.

 

      We recommended the Department strengthen controls over voucher processing to ensure compliance with statutory requirements and its own policies.

 

      Department officials stated they will adhere to this recommendation.  (For previous agency response, see Digest Footnote 2.)

 

OTHER FINDINGS

 

        Other findings dealt with inadequate controls over property and equipment, inadequate monitoring of telephone usage, and inaccurate processing of payroll.  We will review progress toward implementation of all our recommendations during our next examination.

 

 

 

___________________________________

      WILLIAM G. HOLLAND, Auditor General

 

WGH:KMC:drh

 

SPECIAL ASSISTANT AUDITORS

 

Our special assistant auditors for this audit were E. C. Ortiz & Co., LLP.

 

 

 

Digest Footnotes

 

1.        INADEQUATE FINANCIAL REPORTING – (Previous Department Response)

 

2005:       “The Department agrees with the recommendation.  The Department has secured additional software to help manage, reconcile, and support the GAAP Reporting Package.”

 

2.        INADEQUATE  CONTROLS OVER VOUCHER PROCESSING - (Previous Department Response)

 

2005:       “The Department agrees with the recommendation.  The Department has made significant improvements in regards to timely processing of vouchers.  All travel vouchers are processed within 1 week of receipt.  All other vouchers are processed within 2 weeks of receipt.  In addition, the Department will continue to approve and process vendor invoices in a timely manner.”