REPORT DIGEST

 

DEPARTMENT OF TRANSPORTATION

 

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

 

For the Year Ended:

June 30, 2007

 

 

 

Summary of Findings:

Total this audit                 26

Total last audit                 11

Repeated from last audit    7

 

Release Date:

May 8, 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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

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

 

This Report Digest and the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

INTRODUCTION

 

      This report digest covers both the Financial Audit and State Compliance Examination of the Department of Transportation for the year ended June 30, 2007.   The Financial Audit Report contains three Findings (numbers 1-3).   The State Compliance Examination Report contains 23 Findings (numbers 4-26).

 

SYNOPSIS

 

  • The Department did not adhere to proper accounts payable cut-off policies and standards required by the State and generally accepted accounting principles.  Liabilities were significantly understated.

 

  • The Department made payments for Information Technology and Graphic Designers to the Department of Central Management Services (DCMS) without supporting documentation.

 

  • The Department did not have adequate controls to prevent inappropriate payments to vendors.

 

  • The Department and local agencies were delinquent in performing bridge inspections during FY07.  In addition, the Department needs to improve the quality of the bridge inspection data. 

 

  • The Department did not follow its own procedures for procuring professional and artistic contracts and did not maintain adequate documentation to substantiate its procurement activities.

 

  • The Department failed to provide proper notifications in the Illinois Procurement Bulletin and did not maintain adequate documentation in its procurement files.

 

  • The Department did not have adequate controls over its grant agreements.

 

  • The Department did not have adequate controls over tracking the costs and usage of State vehicles, the assignment of State vehicles to employees, and its reporting of vehicle accidents to DCMS.

 

  • The Department’s process to monitor interagency agreements was inadequate.

 

  • The Department did not establish adequate controls for securing its computer resources.

 

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

 

 

 

DEPARTMENT OF TRANSPORTATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For The Year Ended June 30, 2007

 

EXPENDITURE STATISTICS

FY 2007

FY 2006

·         Total Expenditures (All Appropriated Funds)

 

$4,065,193,109

$3,786,467,365

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

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

$653,086,724

16.07%

$586,982,926

15.50%

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

            % of Operations Expenditures....

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

$367,317,070

56.24%

5,469

$346,429,630

59.02%

5,647

         Other Payroll Costs (FICA,

          Retirement)............................................

            % of Operations Expenditures....

 

$70,512,215

10.80%

 

$56,538,667

9.63%

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

            % of Operations Expenditures....

$105,172,036

16.10%

$100,100,667

17.05%

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

            % of Operations Expenditures....

$110,085,403

16.86%

$83,913,962

14.30%

     GRANTS TOTAL...................................

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

$1,459,997,979

35.91%

$1,398,345,623

36.93%

     CONSTRUCTION TOTAL.........................

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

$1,944,421,571

47.83%

$1,796,580,236

47.45%

     CAPITAL IMPROVEMENTS TOTAL...

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

$7,686,835

0.19%

$4,558,580

0.12%

     CAPITAL ASSETS – GROSS

         Infrastructure......................................

         All Other............................................

               Total............................................

 

$22,467,463

2,571,266

$25,038,729 

 

$21,808,196

2,508,588

$24,316,784

SELECTED ACTIVITY MEASURES (Not  Examined)

FY 2007

FY 2006

·         Number of bridges maintained/improved................

274

255

·         Percent of bridges in need of repair......................

10%

9%

·         Number of lane miles of pavement maintained.......

42,774

42,774

·         Construction investment/lane mile.........................

$44,326

$40,995

·         Miles of pavement maintained/improved................

908

820

·         Percent of roads in need of repair ........................

13%

13%

AGENCY SECRETARY(S)

During Audit Period:  Mr. Timothy Martin (07/01/07-01/26/07) Mr. Milton Sees (01/26/07 – current)

Currently:  Mr. Milton Sees

 

 

 

 

 

 

 

 

 

 

Proper cut-off policies and standards not followed

 

 

 

 

 

 

Liabilities were understated by $84,211,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Lack of supporting documentation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll charges of $301,665 not supported

 

 

 

 

 

Building rent totaling $13,658 paid twice

 

 

 

No support for $9,845  in Graphic Designer billings

 

 

 

 

 

 

 

 

 

 

 

 

Inadequate controls

 

 


Payments totaling $22,881 were made in error

 

 

 

 

 

 

 

 

Vendors return duplicate payments

 

 

 

 

 

 

 

Date on invoice was changed

 

 

 

 

 

 

 

 

 


No review of employee overrides

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,752 bridge inspections were delinquent according to Department intervals

 

 

 

 

 

 

 

 

Problems noted with data accuracy regarding bridge inspection intervals

 

 

 

 

No individual was formally appointed as the Bridge Inspection Program Manager

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department states some of the bridges noted in the finding were not their responsibility and some of the bridge inspections were not actually delinquent

 

 

 

 

 

 


Auditors’ Comment

 

 

 

 

 

 

 

 

 

 

 

Procedures for awarding contracts were not followed

 

 

Negotiation not made with the bidder with the highest responsiveness points

 

 

 

 

Contract awarding process not documented adequately

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department partially agrees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auditors’ Comment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notification of award to other than lowest bidder not posted on the Illinois Procurement Bulletin

 

 

 

 

 

Procurement files did not document the proper handling of vendor price proposals