REPORT DIGEST

 

DEPARTMENT OF REVENUE

 

FINANCIAL AUDIT

AND

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2006

 

Summary of Findings:

Total this audit†††††††††††††††††††††††† 2

Total last audit†††††††††††††††††††††††† 1

Repeated from last audit††††††††  0

 

Release Date:

 March 29, 2007

 

 

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.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

®      The Department did not ensure its disaster contingency plans were updated and adequately tested to ensure timely recovery of its critical computer resources.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

 


DEPARTMENT OF REVENUE

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For the Year Ended June 30, 2006

 

EXPENDITURE STATISTICS

FY 2006

FY 2005

 

(in thousands)

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

$8,823,611

$8,089,177

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

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

$222,180

3%

$226,299

3%

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

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

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

$109,410

49%

2,058

$109,547

48%

2,124

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

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

$25,780

12%

$34,007

15%

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

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

$42,883

19%

$37,783

17%

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

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

$44,107

20%

$44,962

20%

 

 

 

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

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

 

$4,511,817

51%

$3,964,338

49%

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

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

 

$4,089,614

46%

$3,898,540

48%

†††† Total Deposits Remitted to the State Treasury

$30,567,310

$28,547,732

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

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

$12,612,492

41%

$11,521,783

40%

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

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

$11,456,367

37%

$10,631,440

37%

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

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

$1,373,236

5%

$1,360,349

5%

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

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

$1,758,633

6%

$1,729,792

6%

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

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

 

$3,366,582

11%

$3,304,368

12%

PROPERTY AND EQUIPMENT at June 30,

 

$27,544

$27,804

SELECTED ACCOUNT BALANCES at June 30,

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

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

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

 

 

$1,935,446

††† (634,498)

$1,300,948

 

$2,014,435

††† (645,062)

$1,369,373

†††† DEPARTMENT DIRECTOR

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

†††† Currently:Brian A. Hamer


 

 

 

 

 


 

 

 

 

 

Contingency plans were not tested and updated during the audit period

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

INADEQUATE DISASTER CONTINGENCY PLANNING

 

††††† The Department did not ensure its disaster contingency plans were updated and adequately tested to ensure timely recovery of its critical computer resources.During our review of the Departmentís 24 contingency plans we noted:

 

        The contingency plans had not been updated or tested during the audit period.Eleven plans were last updated in 2002; four in 2003; and eight in 2004. The last recovery test was performed in March 2005.

        Not all plans included a prioritized list of critical applications and recovery timeframes;

        Most plans did not identify recovery personnel and contact information or the contact information was not updated;

        Several plans included incorrect information pertaining to an alternative hot-site location. (Finding 2, pages 12-13)

 

††††† We recommended the Department update its contingency plans to reflect the current environment and include a prioritized listing of critical applications, recovery timeframes, and current recovery team members. Once updated the Department should ensure the plans are updated and adequately tested at least annually to ensure the plans remain current and effective. In addition, testing should be documented and the plans updated if necessary.

 

†††† The Department agreed with the finding and recommendation and will ensure the plans are updated and adequately tested to ensure the plans remain current and effective.

 

OTHER FINDING

††††† The remaining finding is reportedly being given attention by the Department.We will review the Departmentís progress towards implementing our recommendation during the next audit period.

 

 

AUDITORSí OPINION

 

††††† Our auditors stated the financial statements of the Department of Revenue as of June 30, 2006, and for the year then ended are fairly presented in all material respects.

 

 

 

____________________________________†††

WILLIAM G. HOLLAND, Auditor General

 

WGH:GR:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

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