REPORT DIGEST PRISONER REVIEW BOARD Compliance Examination For the Two Years Ended June 30, 2014 Release Date: January 8, 2015 FINDINGS THIS AUDIT: 4 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 1 -- 0 Category 2: 4 -- 0 -- 4 Category 3: 0 -- 0 -- 0 TOTAL: 4 -- 0 -- 4 FINDINGS LAST AUDIT: 2 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. 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 SYNOPSIS • (14-1) The Prisoner Review Board (Board) did not exercise adequate controls over the recording and reporting of State Property. • (14-2) The Board had weaknesses in controls over voucher processing. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS PROPERTY CONTROL WEAKNESS The Board did not exercise adequate controls over the recording and reporting of State property. Items tested, totaling $56,591, were not added to or deleted from the Board’s property records timely. The property record changes were made between 21 and 1,260 days late. Equipment items purchased, totaling $21,872, were not included on the Board’s C-15 or property control listing. Board management stated the exceptions noted were due to minimal staff, human error and employee oversight. (Finding 1, pages 8-9). We recommended the Board strengthen internal controls over equipment to ensure all equipment is accurately recorded in its accounting records and timely added to and deleted from its property records. Board management agreed with the recommendation and stated the Board will make every effort to ensure that property and equipment information is properly recorded and maintained. VOUCHER PROCESSING WEAKNESS The Board did not exercise adequate controls over voucher processing. Twenty-seven of 116 vouchers tested were approved for payment from 1 to 50 days late. In addition, the supporting invoices for 23 of 116 vouchers tested did not have proper date stamps so auditors could not determine timeliness of approvals. The Board utilized improper dates when calculating interest due under the Prompt Payment Act. Board management stated the exceptions noted were due to human error and employee oversight. (Finding 2, pages 10-11). We recommended the Board review and approve all vouchers in a timely manner and ensure invoices are properly date stamped and approved by the Agency head when received. Furthermore, we recommended the Board ensure that all interest is calculated correctly and paid in accordance with the State Prompt Payment Act. Board management agreed with the recommendation and stated the Board will make every effort to ensure vouchers are approved timely and invoices properly approved and date stamped upon receipt. OTHER FINDINGS The remaining findings pertain to untimely submission of travel vouchers and untimely revolving fund payments. We will review the Board’s progress toward implementation of our recommendations during our next examination. AUDITOR’S 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 of financial statements. WILLIAM G. HOLLAND Auditor General WGH:skm AUDITORS ASSIGNED This examination was performed by the Office of the Auditor General’s staff.