REPORT DIGEST

LEGISLATIVE PRINTING UNIT

COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011

Release Date: January 11, 2012

Summary of Findings:

Total this audit: 3

Total last audit: 1

Repeated from last audit: 1

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 www.auditor.illinois.gov

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SYNOPSIS

• The Legislative Printing Unit did not maintain adequate control over their commodities inventory.

• The Legislative Printing Unit did not exercise adequate controls over voucher processing.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER COMMODITIES INVENTORY

The Legislative Printing Unit (LPU) did not maintain adequate control over their commodities inventory.

During our test counts of the commodities inventory, we noted 13 of 25 (52%) items counted did not match the perpetual inventory records resulting in the inventory being overstated by $5,457. (Finding 1, page 9)

We recommended LPU strengthen internal controls over the recording and tracking of their commodities inventory by reviewing their inventory and recordkeeping practices to ensure accuracy.

LPU agreed with our recommendation and stated they are currently in the process of updating the Job Tracking System which monitors the LPU commodities inventory. In order to test inventory balances, some test count transactions were entered to increase inventory balances. These test transactions were never deleted thus resulting in an overstatement of some inventory items. LPU stated when the Job Tracking System update is complete, they will ensure all commodities balances are correct and that test counts are accurate.

INADEQUATE CONTROLS OVER VOUCHER PROCESSING

LPU did not exercise adequate control over voucher processing. We noted the following:

• Fifty-five of 133 (41%) vouchers tested totaling $165,215 were approved for payment from 2 to 54 days late.

• The required interest totaling $4,422 was not paid on 16 of 133 (12%) vouchers tested. (Finding 2, page 10)

We recommended LPU ensure all interest owed on vouchers is paid and ensure vouchers are approved within the required time frame.

LPU agreed with our recommendation and stated they will more timely complete the voucher process in the future. They also stated prompt payment interest will be paid timely on all future vouchers.

OTHER FINDING

The remaining finding pertains to controls over State property. This finding is reportedly being given attention by LPU. We will review LPU’s progress towards implementation of our recommendation in our next examination.

AUDITORS’ OPINION

We conducted a compliance examination of the Legislative Printing Unit as required by the Illinois State Auditing Act. The Legislative Printing Unit has no funds that require an audit leading to an opinion of financial statements.

WILLIAM G. HOLLAND

Auditor General

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AUDITORS ASSIGNED

The compliance examination was performed by the Auditor General’s staff.