REPORT DIGEST
LAW ENFORCEMENT TRAINING AND STANDARDS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2010
Release Date: June 28, 2011
Summary of Findings:
Total this audit: 9
Total last audit: 13
Repeated from last audit: 9
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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SYNOPSIS
• The Law Enforcement Training and Standards Board (Board)
did not exercise adequate controls over its electronic data processing (EDP)
consulting agreements.
• The Board did not maintain adequate segregation of duties
over its equipment and receipt processes.
• The Board did not notify the Secretary of State of all
employees whose position required them to file an economic interest statement.
• The Board did not adequately utilize its State vehicles
and did not accurately or timely report vehicle assignment and activity to the
Department of Central Management Services.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER ELECTRONIC DATA PROCESSING
CONSULTING CONTRACTS
The Illinois Law Enforcement Training and Standards Board
(Board) did not exercise adequate controls over its electronic data processing
(EDP) consulting agreements. We noted
the following:
• The Board paid $42,090 in Fiscal Year 2009 to a vendor for
professional website application services and did not execute and file a
contract with the State Comptroller’s Office.
• The Board paid $19,215 in Fiscal Year 2010 to a vendor for
professional website application services prior to the execution of the
contract. The contract stated a term of
July 1, 2009 to December 31, 2009, but the contract was not executed until June
15, 2010. (Finding 1, pages 9-10)
We recommended the Board ensure professional and artistic
contracts expected to exceed $20,000 are competitively procured and all amounts
are paid under the contract in accordance with the contract terms. Further, we recommended the Board procure EDP
consulting services exceeding $25,000 through DCMS as required by
administrative rules and we recommended the Board ensure professional and
artistic services contracts are reduced to writing and filed with the State
Comptroller’s Office as required by law.
Board management accepted our recommendation and stated the
incidents happened or began prior to the current Executive Director and IT
Manager being hired but nonetheless, measures have been implemented.
LACK OF SEGREGATION OF DUTIES
The Board did not maintain adequate segregation of duties
over its equipment and receipt processes.
During testing we noted the following:
• One person had authority to approve property purchases,
tag inventory, maintain the property records, perform the annual physical
inventory and complete the quarterly reports of State property.
• One person had the responsibility of receiving, recording,
and endorsing checks as well as preparing the RDT’s for deposit for Fund 923.
• Receipts were not reconciled monthly by an independent
person. (Finding 2, page 11)
We recommended the Board allocate sufficient personnel in
order to maintain effective internal control over the authorization, custody
and record keeping duties concerned with property control and receipts
functions.
Board management accepted our recommendation and stated the
Board will work within existing headcount resources to segregate the functions
and request additional headcount resources through the budgetary process to
more fully segregate functions.
FAILURE TO FILE ECONOMIC INTEREST STATEMENTS
The Board did not notify the Secretary of State of all
employees whose position required them to file an economic interest statement.
During testing we noted three Board employees who had direct
authority for the formulation, negotiation, issuance or execution of contracts
entered into by the State in the amount of $5,000 or more were omitted from the
list of employees required to file statements of economic interest and
therefore the three employees did not file the required economic interest
statements. (Finding 4, page 14)
We recommended the Board comply with the Act and take
appropriate action to ensure required employees file economic interest
statements with the Secretary of State.
Board management accepted our recommendation and stated they
have already implemented the recommendation.
INADEQUATE UTILIZATION OF STATE VEHICLES AND INACCURATE
VEHICLE REPORTING
The Board did not adequately utilize its State vehicles and
did not accurately or timely report vehicle assignment and activity to the
Department of Central Management Services (DCMS). During testing we noted the following:
• The Board did not sufficiently utilize 7 of 9 (78%)
vehicles during Fiscal Year 2009 and Fiscal Year 2010. The vehicles were driven an average of 0 to
1,160 miles per month in Fiscal Year 2009 and 0 to 1,248 miles per month in
Fiscal Year 2010.
• The Board’s Annual Vehicle Reports submitted to DCMS were
inaccurate. The Board reported its
vehicles’ average mileage driven was between 804 to 3,808 miles per month
during Fiscal Year 2009 and 2010 when actual average monthly usage ranged from
313 to 2,179. Also, the Board
inaccurately reported the vehicle number assigned to one individual on both the
Fiscal Year 2009 and 2010 Annual Vehicle Report. Lastly, four employees were left off the
Fiscal Year 2009 Annual Vehicle Report submitted by the Board to DCMS even
though Board records showed these four employees had vehicles assigned to
them. (Finding 7, pages 17-18)
We recommended the Board transfer underutilized and
unnecessary vehicles to surplus or document the operational need for the
vehicles. We also recommended the Board
accurately report required vehicle data to DCMS.
Board management accepted our recommendation and stated they
will make every effort to comply with state requirements regarding vehicle
utilization.
OTHER FINDINGS
The remaining findings pertain to: 1) employee attendance,
2) performance appraisals, 3) noncompliance with State Officials and Employees
Ethics Act; 4) inadequate controls over automobile expenditures, and 5) voucher
processing weaknesses. These findings
are reportedly being given attention by the Board. We will review the Board’s progress towards
implementation of our recommendations in our next examination of the Board.
AUDITORS’ OPINION
We conducted a compliance examination of the Board as
required by the Illinois State Auditing Act.
The Board has no funds that require an audit leading to an opinion on
financial statements.
WILLIAM G. HOLLAND
Auditor General
WGH:JSC:pp
AUDITORS ASSIGNED
This examination was performed by the Office of the Auditor General’s staff.