REPORT DIGEST

ILLINOIS STATE AND LOCAL LABOR RELATIONS BOARDS

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1997

Summary of Findings:

Release Date:
March 26, 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 Illinois State and Local Labor Relations Boards prepared vouchers for invoices without verifying that the goods had been received. This finding has been repeated since 1995.
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• Total Expenditures (All Funds)
  
  Personal Services*
  % of Total Expenditures
  Average No. of Employees
  
  Other Payroll Costs (FICA, Retirement)
  % of Total Expenditures
  
  Contractual Services
  % of Total Expenditures
  
  Electronic Data Processing
  % of Total Expenditures
  
  All Other Items
  % of Total Expenditures
  
  
  
• Cost of Property and Equipment
  

$1,658,148

$1,125,690
67.9%
28

$181,258
10.9%

$192,631
11.6%

$49,318
3.0%

$109,251
6.6%


$578,864

$1,495,385

$1,019,970
68.2%
27

$162,199
10.9%

$176,406
11.8%

$42,323
2.8%

$94,487
6.3%


$596,281

$1,480,183

$994,121
67.2%
28

$150,582
10.2%

$198,280
13.4%

$49,304
3.3%

$87,896
5.9%


$587,496

FY 1997

FY 1996

FY 1995

• Child Labor Violations

• Carnival Rides Inspected

• Wage Claims Filed

• Wage Claims Settled

• Minimum Wage Violations

10,295

1,673

8,429

14,593

7,948

17,044

1,503

8,346

11,564

7,669

13,455

1,574

8,027

14,645

10,459

During Audit Period: Shinae Chun

Currently: Shinae Chun

 

Forty-three of 120 vouchers were paid without evidence the goods were received

FINDING, CONCLUSION, AND RECOMMENDATION

VOUCHERS PREPARED WITHOUT VERIFYING RECEIPT OF GOODS

During our audit, we tested 11% of the Agency's 1,076 total vouchers and found 43 of 120 vouchers (36%) were paid without evidence that the goods were received. The majority of the exceptions were for equipment, books, and electronic data processing purchases. A generally accepted internal control policy is to verify receipt of goods or services prior to payment. This finding has been repeated since 1995. (Finding 1, page 9)

We recommended the Agency verify and document the receipt of goods before submitting invoices for voucher preparation.

Agency officials stated the recommendation will be implemented. (For the previous Agency response, see Digest footnote #1.)

AUDITORS' OPINION

We conducted a compliance audit of the Boards as required by the Illinois State Auditing Act. The Boards had no locally held federal or State trust funds. Consequently, there were no financial statements requiring a financial audit leading to an opinion.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Boyd, Freese, West & Vogt were our special assistant auditors for this audit.

DIGEST FOOTNOTES

#1 VOUCHERS PREPARED WITHOUT VERIFYING RECEIPT OF GOODS - Previous Agency Response

1995: "The recommendation has been implemented."