REPORT DIGEST


DEPARTMENT OF HUMAN RIGHTS

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2013


Release Date:   February 6, 2014

Summary of Findings:
Total this audit: 4
Total last audit:  4
Repeated from last audit: 4

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL

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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 Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

SYNOPSIS

• The Department did not maintain adequate
financial records or prepare accurate accounting
reports using generally accepted accounting
principles.

• The Department lacked adequate controls over
voucher processing.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE FINANCIAL REPORTING

The Department of Human Rights (Department) did
not maintain adequate financial records or
prepare accurate accounting reports using
Generally Accepted Accounting Principles (GAAP)
for submission to the Illinois Office of the
State Comptroller.  The Department did not keep
adequate records or schedules to support
grant/contract data and accounts receivable.

In our review of the GAAP Reporting Package
submitted to the State Comptroller’s Office we
noted:

• As of June 30, 2012, accounts receivable,
revenues and the fund balance were overstated by
$483,000.

• In the year ended June 30, 2013, revenues were
then understated by $483,000.

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

We recommended the Department keep adequate
records or schedules to support grant/contract
data and accounts receivables so that accurate
“GAAP Reporting Packages” can be prepared in the
future.

Department officials stated they have made
significant improvements over the course of FY13
and accurate schedules have been completed to
enable accurate preparation of GAAP packages
going forward.  (For previous agency response,
see Digest Footnote 1.)

INADEQUATE CONTROLS OVER VOUCHER PROCESSING

The Department did not have adequate controls
over voucher processing.

During our review of 134 vouchers we noted the
following:

• Seventeen (13%) vouchers tested totaling
$298,324 were approved more than 30 days after
receipt of the vendor’s invoice.  The vouchers
were approved for payment 1 to 533 days late.

• Eleven (8%) of the vouchers tested totaling
$33,947 were paid more than 90 days after the
receipt of the vendor’s invoice. For one
voucher, interest totaling $144 was due and was
not paid. (Finding 2, pages 11-12)  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 made
significant improvements over the course of FY13
and will continue to strengthen controls over
voucher processing.  However, they are unable to
make some payments until cash and/or transfers
are made available.  (For previous agency
response, see Digest Footnote 2.)


OTHER FINDINGS

Other findings pertained to employee evaluations
not being completed timely and inadequate
controls over State property and equipment.  We
will review progress toward implementation of
all our recommendations during our next
examination.

WILLIAM G. HOLLAND
Auditor General

WGH:JCR

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit
were McGreal & Company, PC.

Digest Footnotes

1. INADEQUATE FINANCIAL REPORTING – (Previous
Department Response)

2011:  “The Department will adhere to this
recommendation and continue to work closely with
the Comptroller’s Office to complete the yearly
GAAP package.  For FY10 and FY11, the Fiscal
Staff completed this package with the assistance
of the Comptroller’s Office.”

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

2011: “The Department will adhere to the
recommendation.  The Department has made
significant improvements in this area and will
continue to do so.  Because of limited cash
flow, at times, throughout the Fiscal Year the
Department is unable to fulfill some payments
until cash and or transfers are made available.”