REPORT DIGEST

ILLINOIS MATH &
SCIENCE ACADEMY

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
May 6, 1998

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Academy did not consistently document the date of receipt of vendor invoices. Documenting the dates of receipt would enable the Academy to ensure timely approval and payment of invoices.

• The Academy did not use a competitive selection procedure for certain printing services.

• Several reports, including receipts and disbursements for locally held funds, vehicle assignments, and travel headquarters, were not filed by due dates.
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

• REVENUES

State Appropriations
Student Activity Fees
Donations
State Contracts
Miscellaneous
Investment Income
Federal Government
Other Illinois State Agency Grants
Rental Income
TOTAL REVENUES

• EXPENDITURES

Personal Services
Retirement Contributions
Social Security Contributions
Contractual Services
Travel
Commodities
Equipment
Electronic Data Processing
Telecommunication Services
Operation of Automotive Equipment
Awards and Grants
TOTAL EXPENDITURES

 

$12,814,022
663,986
320,151
80,920
155,662
27,765
28,663
141,881
604
$14,233,654




$9,307,430
-
146,190
3,461,363
164,462
449,309
433,386
113,799
257,877
25,498
27,000
$14,386,314

$12,195,388
644,597
334,603
228,900
56,255
41,473
25,515
16,479
13,875
$13,557,085




$8,798,554
-
139,168
3,388,717
143,837
387,268
609,574
138,859
227,708
32,598
-
$13,866,283

JUNE 30, 1997

JUNE 30, 1996

$963,769
1,374,521
1,001,000
755,755
486,899
61,156

(160,157)
114,769
48,803,907

At June 30, 1997
215
646
$6,572

$1,054,839
1,158,328
898,973
751,457
286,119
205,657

(12,382)
-
46,730,526

At June 30, 1996
211
649
$6,705

During Audit Period: Stephanie P. Marshall, Ph.D.
Currently: Stephanie P. Marshall, Ph.D.

24 of 172 invoices tested did not have adequate documentation of date of receipt

The Academy did not use a competitive selection
procedure for a printing contract amounting to $56,043

The Academy did not submit certain reports to State agencies in a timely manner

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INCONSISTENT PROCEDURES FOR PROCESSING INVOICES

The Academy did not consistently document the date of receipt of vendor invoices. This finding is repeated from the Fiscal Year 1996 audit.

The auditors identified 24 invoices out of 172 tested (13.9%) for which the Academy did not have complete documentation to identify the date of receipt of invoices and/or the related goods and services. The State Prompt Payment Act (30 ILCS 540/1 et seq.) and related rules (74 IL Admin. Code 900.70) require State agencies to pay invoices within 60 days of receipt and approve or deny invoices within 30 days of receipt. (Finding 1, page 14)

We recommended the Academy implement a policy which requires Academy staff to document the date of receipt of invoices and/or related goods and services. Academy officials agreed with the recommendation noting that corrective procedures have been implemented.

PRINTING CONTRACT PROCUREMENT

The Academy did not use a competitive selection procedure for printing services. The Academy spent $56,043 on printing services with one vendor and the related contract was marked exempt from a competitive process.

The Purchasing Act (30 ILCS 505/1 et seq.) requires agencies to use a competitive selection procedure for printing contracts greater than $25,000. Academy staff stated they believed the services were exempt since art work was included in the total cost. (Finding 2, page 15)

We recommended the Academy implement procedures to ensure that contracts subject to competitive selection are procured as required by the Illinois Purchasing Act. Academy officials concurred with the recommendation and stated they took immediate steps to change the practice as soon as the error was noted.

REPORTS NOT FILED TIMELY

The Academy did not file certain reports in a timely manner including:

• State Comptroller's Generally Accepted Accounting Principles (GAAP) reports which were due on August 15, 1997 but were not filed until October 1997;

• State Comptroller's fourth quarter report on receipts and disbursements for locally held funds, due on July 31, 1997, but not filed until October 2, 1997.

In addition, the Academy did not file a Vehicle Assignment Report for Fiscal Year 1997 with the Department of Central Management Services. The Travel Headquarters Report to the Legislative Audit Commission was also not filed timely. The Academy responded the problems occurred due to turnover of key staff. (Finding 3, page 16)

We recommended the Academy ensure it has adequate staff to file all required reports in a timely manner.

Academy officials agreed with the recommendation.

AGENCY RESPONSES

Responses to the recommendations were provided by Mr. William Fritz, Vice President of Strategic Resources for the Academy, in a letter dated January 20, 1998.

AUDITORS' OPINION

Our auditors state the financial statements of the Illinois Math & Science Academy at June 30, 1997 are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JAW:ak

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Miller, Cooper & Co. Ltd.