REPORT DIGEST

REPORT DIGEST

ILLINOIS COMMUNITY COLLEGE BOARD

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this audit 3

Total last audit 7

Repeated from last audit 2

Release Date:

April 3, 2007

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 Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

· The Illinois Community College Board (Board) did not receive required informational grant reports from community college districts by the required deadline.

· The Board did not maintain information from various State agencies about education and training services provided to adult citizens in Illinois as required by the Adult Education Reporting Act.

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

ILLINOIS COMMUNITY COLLEGE BOARD

COMPLIANCE EXAMINATION

For the Two Year Ended June 30, 2006

EXPENDITURE STATISTICS	FY 2006	FY 2005	FY 2004
·Total Expenditures (All Funds)..................	$395,973,444	$394,851,890	$388,411,726
OPERATIONS TOTAL............................... % of Total Expenditures........................... Personal Services.................................... % of Operations Expenditures......... Other Payroll Costs (FICA, Retirement).. % of Operations Expenditures......... Contractual Services................................ % of Operations Expenditures......... EDP...................................................... % of Operations Expenditures......... Lump Sums............................................. % of Operations Expenditures......... All Other Operations Items...................... % of Operations Expenditures......... AWARDS & GRANTS TOTAL.................. % of Total Expenditures..........................	$6,002,886 1.5% $1,175,448 19.6% $15,582 .2% $346,162 5.8% $420,961 7.0% $3,924,224 65.4% $120,509 2.0% $389,970,558 98.5%	$7,516,895 1.9% $1,278,231 17.0% $14,339 .2% $315,606 4.2% $435,324 5.8% $5,378,364 71.6% $95,031 1.2% $387,334,995 98.1%	$7,366,302 1.9% $1,281,297 17.4% $14,891 .2% $346,127 4.7% $403,803 5.5% $5,223,884 70.9% $96,300 1.3% $381,045,424 98.1%
·Cost of Property and Equipment..............	$1,106,767	$1,276,413	$1,230,425

SELECTED ACTIVITY MEASURES	FY 2006	FY 2005	FY 2004
· Total Receipts (All Funds)................................ · Expenditures of Federal Awards....................... · Twelve Month Unduplicated Enrollment.......... · Business Provided Technical Assistance.......... · Pre-Baccalaureate degree completions............ · Average Annual Tuition and Mandatory Fees.. · Number of Community Colleges....................... · Number of Employees...................................... * Not Examined	$25,979,598 $48,832,000 698,971 4,904 51,444 $2,082 49 45	$27,405,479 $48,198,000 698,971 N/A N/A $1,918 49 51	$27,389,282 $46,086,000 698,707 4,837 47,986 $1,807 49 54
AGENCY HEAD
During Audit Period: Geoffrey S. Obrzut, President Currently: Geoffrey S. Obrzut, President

Grant informational reports were received late

The Board lacks a penalty mechanism to impose against the Districts that file late

The Board did not obtain information from various State agencies about education and training services provided to adult citizens in Illinois

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

COMMUNITY COLLEGE DISTRICTS SUBMITTED GRANT INFORMATIONAL REPORTS LATE

The Illinois Community College Board (Board) did not receive required informational grant reports from community college districts by the required deadline.

During detail testing, we noted 369 of 1,992 (18.5%) informational reports due in fiscal year 2005 were 1 day to 23 months late in being submitted to the Board. We also noted 250 of 1,796 (13.9%) informational reports due in fiscal year 2006 were 1 day to 14 months late in being submitted to the Board.

Board management stated the Board has little recourse to enforce timely filing of the reports due to a lack of a penalty mechanism to impose upon the districts that file late.

We previously recommended the Board perform a comprehensive review of reporting deadlines to determine if deadlines should be revised. Board management stated that it examined the reporting deadline structure and determined that none could be altered. The Board has discussed the issue repeatedly with the 49 colleges and 58 Adult Education providers, but issues arise which cause the reporting deadlines to be missed.

The Board uses the informational reports to evaluate the effectiveness of grant programs and prepare for future budgets. The failure to receive the community college information reports promptly makes it more difficult for the Board to complete its own internal summary reports and budget preparation. (Finding 1, pages 9-10) This finding was first reported in 1996.

We recommended the Board consider its options for adopting enforcement mechanisms to improve community colleges’ compliance with reporting deadlines.

Board officials concurred with our recommendation and stated that it has started a new policy that either the President or Board Chairman of a college must come before the Board to explain why the audit report is late. The Board will also look at the other 1,991 reports to determine which ones may be important enough to require Board interaction with the college. (For the previous Board response, see Digest Footnote #1.)

FAILURE TO GATHER EDUCATION AND TRAINING SERVICES DATA AS REQUIRED BY THE ADULT EDUCATION REPORTING ACT

The Illinois Community College Board (Board) did not obtain information from various State agencies about education and training services provided to adult citizens in Illinois as required by the Adult Education Reporting Act.

The Board has not received any voluntary provided communication from these agencies regarding their educational programs and services for adult citizens since the July 1, 2001 effective date for reporting to the Board in accordance with the Act. One agency (the Department of Human Services) did submit the first and only report in July 2006.

Board management stated they were not aware of the provisions of the Act. The Board has since actively solicited the information in August 2006. (Finding 3, page 12)

We recommended the Board work with the mandated agencies to obtain the annual information required by the Adult Education Reporting Act.

Board officials concurred with the finding and stated the reports are being collected for the current fiscal year, and staff will now collect the information annually.

OTHER FINDING

The remaining finding is reportedly being given attention by Board management. We will review progress toward implementation of our recommendations during our next compliance examination.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

The accounting firm of Sikich LLP served as our special assistant auditors for this engagement.

DIGEST FOOTNOTES

#1 COMMUNITY COLLEGE DISTRICTS SUBMITTED GRANT INFORMATIONAL REPORTS LATE – Previous Board Response

2004: The Board concurs with this finding. In order to improve on the due dates of informational reports, the Board will work with the Management Information Systems Advisory Group. This group is made up of college representatives and meets quarterly to assist with systems MIS issues. The Board will work with this group to decrease the number of late reports received.

FY 2006

FY 2005

FY 2004

AGENCY HEAD