REPORT DIGEST

 

 

PROCUREMENT POLICY BOARD

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2008

 

Summary of Findings:

 

Total this audit††††††††††     1

Total last audit               8

Repeated from last audit  1

 

 

Release Date:

December 4, 2008

 

 

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

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

®                  The Board did not adjust property control records or exercise adequate controls over its property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


 

ILLINOIS PROCUREMENT POLICY BOARD

COMPLIANCE EXAMINATION

For the Two Years Ended June 30, 2008

 

EXPENDITURE STATISTICS

FY 2008

FY 2007

FY 2006

  Total Expenditures (All Funds)...........

 

$281,941

$251,308

$217,788

Personal Services........................................

% of Expenditures.................................

Average No. of Employees....................

$177,344

63%

4

$167,598

67%

4

$144,574

66%

4

Other Payroll Costs (FICA, Retirement)......

% of Expenditures.................................

$41,925

15%

$31,163

12%

$21,268

10%

Contractual Services....................................

% of Expenditures.................................

$48,538

17%

$43,834

17%

$43,654

20%

All Other Operations Items..........................

% of Expenditures.................................

 

$14,134

5%

$8,713

4%

$8,292

4%

  Cost of Property and Equipment..............

$28,094

$24,518

$22,928

 

 

 

 

 

 

SELECTED ACTIVITY MEASURES(Not Examined)

Calendar Year

2007

Calendar Year

2006

Calendar Year

2005

Procurement Reviews Initiated

 

 

 

Contract Award Notice

Emergency

Sole Source

Total Procurement Reviews Initiated

†††††††† 3

†††††††† 0

†††††††† 0

†††††††† 3

†††††††††† 8

†††††††††† 1

†††††††† 4

†††††††† 13

†††††††† 15

†††††††††† 1

†††††††† 6

†††††††† 22

 

More Information Requested and Results

†† More Information Requested

Procurement Withdrawn due to Board Inquiry

 

 

†††† 450

†††††† 17

††††††††††††

 

†††††† 359

†††††††††† 8

 

 

†††††† 408

†††††††† 13

 

Agency Executive Director

†††† During Audit Period:Matthew Brown

†††† Currently:Matthew Brown


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


New items were not tagged or included on property records

 

 

$3,564 difference between the Boardís property records and the Fixed Asset Report submitted to the Office of the Comptroller

 

 


Ten property items totaling $2,505 were included on the Boardís internal report but not on the CMS report

 

 

 

 

 

 

 

 

 

 


Property items were incorrectly recorded on property records

 

 

 

 

 

 

 

 

 

Property items were inadvertently deleted from property records

 

 

INTRODUCTION

 

††††† The Procurement Policy Board is statutorily charged with the responsibility to review, comment upon and recommend rules and practices governing the procurement, management, control and disposal of supplies, services, professional and artistic services, construction, and real property and capital improvement leases procured by the State.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

 

PROPERTY CONTROL WEAKNESSES

 

††††† The Procurement Policy Board (Board) did not adjust property control records or exercise adequate controls over its property.During testing we noted the following:

 

        The Board did not tag or include two property items, a calculator and a digital recorder, totaling $128 on the property records.

 

        The Boardís property records as of June 30, 2008 indicated a property value of $23,107, however the C-15 Report at June 30, 2008 indicated that the property value was $19,543.

 

        The Board maintained two separate property listings.One listing represented all equipment items that the Board maintains while another listing was maintained on the Central Inventory System through CMS.Ten property items totaling $2,505 were included on the internal report but not on the CMS report.One property item with a zero value recorded on the CMS report was no longer the property of the Board.It was not included on the Boardís internal report.One property item totaling $550 was entered on the CMS report twice.

 

        Two property items totaling $199 were purchased prior to fiscal year 2007, but not included on property records until fiscal year 2007.

 

        Seven property items purchased prior to fiscal year 2007 were added to the property listing during fiscal year 2007 at the incorrect cost resulting in an understatement of $154.

 

        Two property items were entered into the property records at a zero value prior to fiscal year 2007, however, during fiscal year 2007 the Board entered the actual price totaling $2,870 into the property records.

 

        Four property items totaling $2,904 were deleted from the property records prior to June 30, 2008, however, the Board still had possession of those property items.

 

We recommended the Board comply with the Illinois Administrative Code and the State Property Control Act by ensuring all property under its jurisdiction is recorded accurately on their property records.

 

Board officials concurred with our recommendation and stated they had transitioned to an internally established database for inventory which complies with the Illinois Administrative Code and the State Property Control Act.The Board also reconciled the new system with the Comptrollers quarterly C-15 inventory value certification.

 

 

 

AUDITORSí OPINION

 

††††† We conducted a compliance examination of the Board as required by the Illinois State Auditing Act.We have not audited any financial statements of the Board for the purpose of expressing an opinion because the Board does not, nor is it required to, prepare financial statements.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:TLD:pp

 

AUDITORS ASSIGNED

 

††††† This compliance examination was performed by the Office of the Auditor Generalís staff.