REPORT DIGEST

 

DEPARTMENT OF REVENUE

 

FINANCIAL AUDIT

AND

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2005

 

Summary of Findings:

Total this audit†††††††††††††††††††††††† 1

Total last audit†††††††††††††††††††††† 13

Repeated from last audit††††††† † 0

 

Release Date:

April 25, 2006

 

 

 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

®      The Department did not comply with the State Officials and Employees Ethics Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 


DEPARTMENT OF REVENUE

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For the Year Ended June 30, 2005

 

EXPENDITURE STATISTICS

FY 2005

FY 2004

 

(in thousands)

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

$8,089,177

$7,955,664

†††† OPERATIONS TOTAL..........................................................

†††††††† % of Total Expenditures.....................................................

$226,299

3%

$233,531

3%

†††††††† Personal Services................................................................

††††††††††† % of Operations Total Expenditures..................................

††††††††††† Average Number of Employees........................................

$109,547

48%

2,124

$117,593

50%

2,304

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

††††††††††† % of Operations Total Expenditures..................................

$34,007

15%

$31,537

14%

†††††††† Contractual Services...........................................................

††††††††††† % of Operations Total Expenditures..................................

$37,783

17%

$41,267

18%

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

††††††††††† % of Operations Total Expenditures.................

$44,962

20%

$43,134

18%

 

 

 

†††† AWARDS & GRANTS, REFUNDS TOTAL..........................

†††††††† % of Total Expenditures.....................................................

 

$3,964,338

49%

$4,066,930

51%

†††† NON-APPROPRIATED FUNDS...........................................

††††††††† % of Total Expenditures.....................................................

 

$3,898,540

48%

$3,655,203

46%

†††† Total Deposits Remitted to the State Treasury

$28,547,732

$27,221,961

†††† Income Taxes.........................................................................

†††††††† % of Total Revenues.........................................................

$11,521,783

40%

$10,667,656

39%

†††† Sales Taxes.............................................................................

†††††††† % of Total Revenues.........................................................

$10,631,440

37%

$10,155,179

38%

†††† Motor Fuel Taxes....................................................................

†††††††† % of Total Revenues.........................................................

$1,360,349

5%

$1,352,198

5%

†††† Public Utilities Taxes...............................................................

†††††††† % of Total Revenues.........................................................

$1,729,792

6%

$1,705,742

6%

†††† Other Collections.....................................................................

†††††††† % of Total Revenues..........................................................

 

$3,304,368

12%

$3,341,186

12%

PROPERTY AND EQUIPMENT at June 30,

 

$27,804

$29,733

SELECTED ACCOUNT BALANCES at June 30,

†††††† Taxes Receivable..................................................................

†††††† Allowance for Uncollectible Taxes.........................................

††††††††† Net Taxes Receivable........................................................

 

 

$2,014,435

††† (645,062)

$1,369,373

 

$1,966,841

††† (753,464)

$1,213,377

†††† DEPARTMENT DIRECTOR

†††† During Audit Period:†† Brian A. Hamer

†††† Currently:Brian A. Hamer



 

 

 

 

 

 

Time spent on official State business was not documented in accordance with the State Officials and Employees Ethics Act

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

INADEQUATE CONTROLS OVER EMPLOYEE TIMEKEEPING

 

††††† The Department did not have adequate controls over employee timekeeping.The Department had personnel policies in regard to timekeeping, but each division within the Department followed their own policies and procedures.However, these policies and procedures did not require all employees to maintain a daily timesheet which documented the time spent each day on official State business.(Finding 1, page 10)

 

††††† We recommended the Department comply with the State Officials and Employees Ethics Act by developing a consistent written policy regarding timekeeping requirements and requiring employees to submit timesheets recording time spent on official State business to the nearest quarter hour.

 

††††† The Department stated that the Department uses for all employees the State of Illinois timekeeping system that is administered by the Department of Central Management Services.†† In addition, the Department utilizes a number of local systems throughout the agency that employees use on a daily basis to record their time on the job, and they believed their current practice complied with State Law.The Department will institute a new policy that will require employees to submit timesheets recording time spent on official State business to the nearest quarter hour by April 30, 2006.

 

 

 

 

AUDITORSí OPINION

 

††††† Our auditors stated the financial statements of the Department of Revenue as of June 30, 2005, and for the year then ended are fairly presented in all material respects.

 

 

 

____________________________________†††

WILLIAM G. HOLLAND, Auditor General

 

WGH:TLD:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

††††† Our special assistant auditors on this audit were McGladrey & Pullen, LLP.