Compliance Plan Fiscal Year 2023
30 ILCS 5/2-16
Statutory Requirement
Public Act 100-0801 amended the Illinois State Auditing Act to provide the following new section:
(30 ILCS 5/2-16 new)
Sec. 2-16. Contract aspirational goals. The Auditor General shall establish aspirational goals for contract awards substantially in accordance [with] the Business Enterprise for Minorities, Women, and persons with Disabilities Act, unless otherwise governed by other law. The Auditor General shall not be subject to the jurisdiction of the Business Enterprise Council established under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act with regard to steps taken to achieve aspirational goals. The Auditor General shall annually post the Office’s utilization of businesses owned by minorities, women, and persons with disabilities during the preceding fiscal year on the Office’s Internet websites.
The purpose of this report is to set contracting goals, a plan for achieving those goals, and the results of our efforts as required by P.A. 100-0801.
Policy Statement
The Auditor General’s Office adopts the public policies set forth in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575/1]. Specifically, it is the public policy of the Auditor General’s Office to promote and encourage the continuing economic development of minority-owned (MBE) and women-owned and operated businesses (WBE, WMBE) and that minority-owned and women-owned and operated businesses participate in our procurement process as both prime and subcontractors. It is also the public policy of the Auditor General’s Office to promote and encourage the continuous economic development of businesses owned by persons with disabilities (PBE). Further, although no specific aspirational goals are established in the Act, it is the policy of the Auditor General’s Office to promote and encourage the economic development of service disabled veteran owned small businesses (SDVOSB) and veteran owned small businesses (VOSB).
Legal Basis
The Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575/] sets specific dollar value aspirational goals for State contracts/subcontracts with MBE, WBE and PBE businesses. The Auditor General’s Procurement Rules permit the OAG’s Chief Procurement Officer to “establish goals and other such preferences for contracting or subcontracting with businesses owned and controlled by minorities, women and persons with disabilities.” [44 ILAC 500.1190]
Aspirational Goals
The Auditor General’s Office adopts the aspirational goals set forth in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575/]. Specifically, “not less than 20% of the total dollar amount of State contracts . . . shall be established as an aspirational goal to be awarded to businesses owned by minorities, women, and persons with disabilities . . . contracts representing at least 11% shall be awarded to businesses owned by minorities, contracts representing at least 7% shall be awarded to women-owned businesses, and contracts representing at least 2% shall be awarded to businesses owned by persons with disabilities.” [30 ILCS 575/4]
Public Act 101-657 increased the aspirational percentages from 11% to 16%, 7% to 10%, and 2% to 4%, effective Jan. 1, 2022. However, Public Act 102-29 became effective in the interim specifying that the goals established in 30 ILCS 575/4 “shall be contingent upon the results of the most recent disparity study conducted by the State.” The most recent disparity study was announced Feb. 23, 2021. As of August 4, 2022, it does not appear the study has been completed at this time. Therefore, the Office will continue utilizing the current percentages until further notice.
Aspirational Goals Expressed in FY23 Dollar Amounts
All terms are as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575/]. In classifying contractors and subcontractors, we relied upon certifications from the Department of Central Management Services as shown on its website at https://cms.diversitycompliance.com/.
Beginning of Year - Projected FY23 Contract Dollar Amounts:
FY23 appropriations total $37,742,422 [P.A. 102-698]. Personal Services costs (which are not subject to contracting) are $7.8 million. The appropriation balance of $32,959,154 (rounded to $33,000,000) represents the approximate dollar value of contracts subject to the aspirational goals during FY23. Twenty-percent of $33,000,000 results in an overall aspirational goal for FY22 of $6,600,000, broken down by category as follows:
|
11% minority-owned (MBE) |
$3,630,000 |
|
7% women-owned (WBE) |
$2,310,000 |
|
2% persons with disabilities (PBE) |
$660,000 |
|
Total FY22 Goal |
$6,600,000 |
FY23 Action Plan
Quantitative Results: The OAG exceeded its WBE aspirational goals during FY20, but did not meet its MBE goals in FY22. At the beginning of FY21, a large MBE-certified firm doing business with our Office was acquired by a non-MBE firm. The same minority employees continue to staff the engagements with our Office, but the contracts are now held by the non-MBE firm. As a result, while our ability to meet our contracting aspirational goals has been negatively affected, the diversity of staffing on our engagements remains the same.
Qualitative Results: We are mindful of barriers to contracting/subcontracting with the OAG that may impede participation in our audit program by MBE, WBE, WMBE, PBE, SDVOSB and VOSB businesses. As a consequence, we will take the following actions during FY23:
i) Access CMS’ vendor portal at https://cms.diversitycompliance.com/.
ii) Input NIGP (National Institute of Government Purchasing) codes to identify vendors who are certified in codes that may contain skill sets relevant to our audit program:
91804: Accounting, Auditing, Budget Consulting
94620: Audit Services
94631: Certified Public Accountant (CPA) Services
96403: Accounting, Auditing, Bookkeeping Personnel
2) Develop list of new possible BEP/VBP audit firms (eliminate firms already in our program and firms that have already been contacted during the preceding two years).
3) Reach out to those firms with information on our Office and identifying a liaison with our Office to whom those firms can direct their specific questions about our audit program, procurement opportunities, and prequalification requirements.