October 15, 2007

Legislative Audit Commission

622 Stratton Office Building

Springfield, IL 62706

Dear Members:

In accordance with section 3-15 of the Illinois State Auditing Act (30 ILCS 5/3-15), I hereby submit the report on the operations of the Office of the Auditor General for the lapse period of Fiscal Year 2007 ending August 31, 2007 and the first quarter of Fiscal Year 2008 ending September 30, 2007.

FISCAL MATTERS

FY 2007 – FINAL

Appropriation Expended Balance

Personal Services $ 4,537,123 $ 4,537,073 $ 50

State Retirement 523,565 523,559 6

Social Security 340,300 339,023 1,277

Contractual Services 680,112 674,524 5,588

Travel 73,000 68,987 4,013

Commodities 11,640 6,896 4,744

Printing 25,000 24,100 900

Equipment 124,360 123,509 851

EDP 116,000 115,789 211

Telecommunications 56,000 52,406 3,594

Oper. of Auto. Equip. 3,000 2,172 828

Audits/Studies/Invest.* 18,109,995 16,406,900 1,703,095

TOTAL $24,600.095 $22,874,938 $1,725,157

*Audit Expense Fund

FISCAL MATTERS

FY 2008 – FIRST QUARTER

Appropriation Expended Obligated Balance

Personal Services $ 4,500,000 $ 1,228,157 $ 0 $ 3,271,843

State Retirement 745,300 203,629 0 541,671

Social Security 344,300 93,489 0 250,811

Contractual Services 736,200 179,574 342,043 214,583

Travel 80,000 7,448 0 72,552

Commodities 16,640 612 0 16,028

Printing 25,000 7,685 0 17,315

Equipment 98,360 5,673 0 92,687

EDP 90,000 8,203 4,550 77,247

Telecommunications 75,000 4,569 0 70,431

Oper. of Auto. Equip. 6,000 294 0 5,706

Audits/Studies/Invest.* 17,513,900 623,099 11,588,017 5,302,784

TOTAL $24,230,700 $ 2,362,432 $11,934,610 $9,933,658

*Audit Expense Fund

PERSONNEL

PERSONNEL

07-01-07 Appointments Separations Transfers 09-30-07

Springfield 77 3 2 0 78

Chicago 10 2 3 0 09

TOTAL 87 5 5 0 87

CONTRACTS

During the first quarter of Fiscal Year 2008 the Office of the Auditor General entered

into one hundred three financial/compliance audit contracts, forty four performance audit contracts, ten information systems audit contracts and eighteen administrative contracts.

TRAINING

During the first quarter of Fiscal Year 2008, OAG-sponsored training included:

§ Compliance Audit Issues Update: July 07

§ Procurement Testing

§ Illinois OAG Audit Policies and Procedures

§ Effective Listening Skills

§ Audit Interviewing

§ 2007 Governmental Accounting and Auditing Update DVD

§ Compliance Audit Issues Update: August 07

§ Internal Controls

§ Performance Audit Roundtable: September 2007

Additional external-sponsored training in which OAG staff participated included:

§ Performance Management and Reporting

§ 2007 NASACT Annual Conference

§ NASACT 2007 Training Directors Forum

§ Illinois Digital Government Summit

§ The Reporting Landscape: An Overview of Payroll Issues at Year End

§ 2007 NSAA IT Workshop & Conference

PERFORMANCE AUDITS

IN PROGRESS

AUDITS

ESTIMATED

RELEASE DATE

· Audit of Pilsen-Little Village Community Mental Health Center, Inc. (House Resolution No. 1146)

· Study of Duplicate Programs (LAC No. 130)

· Medicaid and Group Health Insurance Programs’ Compliance with the Prompt Payment Act and Department of Healthcare and Family Services’ Processing of Vendor Bills (LAC Nos. 136 and 137)

· Management and Program Audit of the Illinois State Police’s Division of Forensic Services (House Resolution No. 451)

Fall 2007

Spring 2008

REGIONAL OFFICES OF EDUCATION AUDITS

Public Act 92-544, effective June 12, 2002, gave the Office of the Auditor General the responsibility for the conduct of annual audits of the financial statements of all accounts, funds and other moneys in the care, custody or control of the regional superintendent of schools of each educational service region in the State. Previously, these audits were the responsibility of the Illinois State Board of Education. There are 48 total audits to perform; 45 are of Regional Offices of Education and 3 are of Intermediate Service Centers. As of September 30, 2007, 47 fiscal year 2006 audits had been released.

The following is a listing of financial audits, single audits and compliance attestation examinations for the period(s) ending June 30, 2006, September 30, 2006, December 31, 2006, and April 30, 2007. This list also includes four compliance examinations pertaining to the CTA, RTA, Metra, and Pace for the year ended December 31, 2005. As the year progresses the “date released” column will be completed.

FINANCIAL AUDITS, SINGLE AUDITS AND COMPLIANCE

ATTESTATION EXAMINATIONS FOR THE PERIOD(S) ENDING

JUNE 30, 2006, SEPTEMBER 30, 2006, DECEMBER 31, 2006,

AND APRIL 30, 2007

F = Financial Audits S = Single Audits C = Compliance Attestation Examinations

*AGENCY*	F	S	C	*DATE* *RELEASED*
Attorney General			x	03-06-07
Capital Development Board	x		x	04-19-07
Chicago State University	x			03-20-07
Chicago State University			x	05-24-07
Chicago State University Foundation	x			02-21-07
Chicago Technology Park	x	x	x	03-22-07
Comptroller – Fiscal Officer	x		x	03-06-07
Comptroller – Non-Fiscal Officer			x	03-06-07
CTA (12/31/05)			x	03-15-07
Department on Aging			x	05-10-07
Department of Central Management Services	x		x	05-24-07
Department of Central Management Services (Deferred Compensation Plan) (12/31/06)	x			07-31-07
Department of Children and Family Services	x		x	04-12-07
Department of Commerce and Economic Opportunity			x	04-24-07
Department of Corrections – General Office (includes Dept. of Juvenile Justice for the month ending 6-30-06)	x		x	06-20-07
Dept. of Corrections, Correctional Center – Big Muddy River			x	06-20-07
Dept. of Corrections, Correctional Center – Centralia			x	06-20-07
Dept. of Corrections, Correctional Center – Danville			x	06-20-07
Dept. of Corrections, Correctional Center – Decatur Womens			x	06-20-07
Dept. of Corrections, Correctional Center – Dixon			x	06-20-07
Dept. of Corrections, Correctional Center – Dwight			x	06-20-07
Dept. of Corrections, Correctional Center – East Moline			x	06-20-07
Dept. of Corrections, Correctional Center – Graham			x	06-20-07
Dept. of Corrections, Correctional Center – Hill			x	06-20-07
Dept. of Corrections, Correctional Center – IL River (Canton)			x	06-20-07
Dept. of Corrections, Correctional Center – Jacksonville			x	06-20-07
Dept. of Corrections, Correctional Center – Lawrence			x	06-20-07
Dept. of Corrections, Correctional Center – Lincoln			x	06-20-07
Dept. of Corrections, Correctional Center – Logan			x	06-20-07
Dept. of Corrections, Correctional Center – Menard			x	06-20-07
Dept. of Corrections, Correctional Center – Pinckneyville			x	06-20-07
Dept. of Corrections, Correctional Center – Pontiac			x	06-20-07
Dept. of Corrections, Correctional Center – Robinson			x	06-20-07
Dept. of Corrections, Correctional Center – Shawnee			x	06-20-07
Dept. of Corrections, Correctional Center – Sheridan			x	06-20-07
Dept. of Corrections, Correctional Center – Southwestern IL			x	06-20-07
Dept. of Corrections, Correctional Center – Stateville			x	06-20-07
Dept. of Corrections, Correctional Center – Tamms			x	06-20-07
Dept. of Corrections, Correctional Center – Taylorville			x	06-20-07
Dept. of Corrections, Correctional Center – Vandalia			x	06-20-07
Dept. of Corrections, Correctional Center – Vienna			x	06-20-07
Dept. of Corrections, Correctional Center – Western Illinois			x	06-20-07
Department of Corrections, Correctional Industries	x		x	06-20-07
Dept. of Corrections, IL Youth Center – Chicago			x	06-20-07
Dept. of Corrections, IL Youth Center – Harrisburg			x	06-20-07
Dept. of Corrections, IL Youth Center – Joliet			x	06-20-07
Dept. of Corrections, IL Youth Center – Kewanee			x	06-20-07
Dept. of Corrections, IL Youth Center – Murphysboro			x	06-20-07
Dept. of Corrections, IL Youth Center – Pere Marquette			x	06-20-07
Dept. of Corrections, IL Youth Center – St. Charles			x	06-20-07
Dept. of Corrections, IL Youth Center – Warrenville			x	06-20-07
Department of Employment Security	x			04-03-07
Department of Financial and Professional Regulation	x		x	05-24-07
Department of Healthcare and Family Services	x		x	04-12-07
Department of Human Services	x			03-20-07
Department of Military Affairs			x	05-08-07
Department of Natural Resources	x		x	04-10-07
Department of Revenue	x		x	03-29-07
Department of Revenue – Gaming Board			x	03-29-07
Department of State Police			x	04-03-07
Department of Transportation	x		x	03-20-07
Department of Veterans’ Affairs – General Office			x	04-19-07
Drycleaner Environmental Response Trust Fund Council			x	04-24-07
DuPage Water Commission (4/30/07)
East St. Louis Financial Advisory Authority	x		x	03-22-07
Eastern Illinois University	x			01-24-07
Eastern Illinois University		x	x	03-20-07
Eastern Illinois University Alumni Association	x			11/29/06
Eastern Illinois University Foundation	x			11/29/06
Environmental Protection Agency	x		x	04-26-07
Environmental Protection Trust Fund Commission			x	04-26-07
Executive Ethics Commission			x	01-31-07
General Assembly – Retirement System	x			03-27-07
General Assembly – Retirement System			x	04-17-07
Governors State University	x			01-24-07
Governors State University		x	x	03-20-07
Governors State University Alumni Association	x			01-18-07
Governors State University Foundation	x			01-18-07
Historic Preservation Agency			x	05-08-07
Illinois Community College Board			x	04-03-07
Illinois Conservation Foundation	x	x	x	03-22-07
Illinois Finance Authority	x			03-22-07
Illinois Finance Authority			x	05-08-07
Illinois Housing Development Authority	x			11-16-06
Illinois Housing Development Authority	x		x	05-08-07
Illinois Mathematics and Science Academy	x		x	06-05-07
Illinois Mathematics and Science Academy Fund	x			04-10-07
Illinois Medical District Commission	x		x	04-26-07
Illinois Petroleum Resources Board			x	04-03-07
Illinois State Board of Investment	x			03-27-07
Illinois State Board of Investment			x	05-24-07
Illinois State Toll Highway Authority – 12/31/06
Illinois State University	x			03-20-07
Illinois State University		x	x	03-29-07
Illinois State University Foundation	x			01-24-07
Illinois State University Foundation			x	03-29-07
Illinois Student Assistance Commission	x		x	03-20-07
Illinois Student Assistance Commission			x	04-05-07
Illinois Student Assistance Commission Designated Account Purchase Program	x			03-20-07
Illinois Student Assistance Commission – Prepaid Tuition	x			02-21-07
Illinois Veterans’ Home – Anna			x	04-19-07
Illinois Veterans’ Home – LaSalle			x	04-19-07
Illinois Veterans’ Home – Manteno			x	04-19-07
Illinois Veterans’ Home – Quincy			x	04-19-07
Illinois Violence Prevention Authority			x	02-21-07
Illinois Workers’ Comp. Comm. – Self Insurer’s Fund	x			03-22-07
Joint Committee on Administrative Rules			x	02-15-07
Judges Retirement System	x			03-27-07
Judges Retirement System			x	04-17-07
Judicial Inquiry Board			x	04-24-07
Kankakee River Valley Area Airport Authority	x		x	04-10-07
Law Enforcement Training Standards Board			x	02-15-07
Legislative Ethics Commission			x	02-15-07
Legislative Information Systems			x	01-31-07
Legislative Inspector General			x	02-15-07
Metra (12/31/05)			x	03-15-07
Northeastern Illinois University	x			01-24-07
Northeastern Illinois University			x	02-15-07
Northeastern Illinois University Foundation	x			11-29-06
Northern Illinois University	x			01-31-07
Northern Illinois University		x	x	03-08-07
Northern Illinois University Alumni Association	x			11-29-06
Northern Illinois University Alumni Association			x	03-08-07
Northern Illinois University Foundation	x			11-29-06
Northern Illinois University Foundation			x	03-08-07
Pace (12/31/05)			x	03-15-07
Pollution Control Board			x	02-21-07
Prisoner Review Board			x	04-05-07
Procurement Policy Board			x	02-15-07
Property Tax Appeal Board			x	01-31-07
RTA (12/31/05)			x	03-15-07
Secretary of State	x			03-06-07
Sex Offender Management Board			x	04-19-07
Southern IL University	x	x	x	03-22-07
Southern IL University – Carbondale Alumni Association	x			02-08-07
Southern IL University – Carbondale Foundation	x			02-08-07
Southern IL University – Carbondale Evergreen Terrace	x			03-22-07
Southern IL University – Edwardsville Alumni Association	x			02-08-07
Southern IL University – Edwardsville Foundation	x			02-08-07
Southern IL University – Physicians & Surgeons, Inc.	x			02-08-07
Southern IL University – Research Park	x			02-08-07
Southern IL University – University Park	x			02-08-07
Southwestern Illinois Development Authority			x	04-19-07
State Appellate Defender			x	03-20-07
State Board of Education	x		x	04-05-07
State Employees’ Retirement System	x			03-27-07
State Employees’ Retirement System			x	04-17-07
State Fire Marshal			x	06-05-07
State Police Merit Board			x	01-31-07
State Universities Retirement System	x			03-27-07
State Universities Retirement System			x	04-17-07
State’s Attorney’s Appellate Prosecutor			x	01-31-07
Statewide Single Audit – (Federal Funds)	x	x	x	07-26-07
Teachers’ Retirement System	x			03-27-07
Teachers’ Retirement System			x	04-17-07
Treasurer – Bright Start College Savings Program	x			12-12-06
Treasurer – Fiscal Officer	x		x	03-06-07
Treasurer – Illinois Funds	x			12-12-06
Treasurer – Change Over Audit	x		x	05-24-07
University of Illinois	x			01-24-07
University of Illinois		x	x	03-08-07
University of Illinois Alumni Association	x			11-16-06
University of Illinois Alumni Association			x	03-08-07
University of Illinois Foundation	x			12-12-06
University of Illinois Foundation			x	03-08-07
University of Illinois – Prairieland Energy, Inc.	x			01-18-07
University of Illinois – Prairieland Energy, Inc.			x	03-08-07
University of Illinois – Research Park, LLC	x			02-08-07
University of Illinois – Research Park, LLC			x	03-08-07
University of Illinois – Ventures, LLC	x			01-24-07
University of Illinois – Ventures, LLC			x	03-08-07
University of Illinois – Wolcott, Wood & Taylor, Inc.	x			11-16-06
University of Illinois – Wolcott, Wood & Taylor, Inc.			x	03-08-07
Western Illinois University	x		x	05-08-07
Western Illinois University Foundation	x			03-29-06

The following is a listing of financial audits, single audits and compliance attestation examinations for the period(s) ending June 30, 2007, September 30, 2007, and December 31, 2007. As the year progresses the “date released” column along with type of agency engagement columns will be completed.

FINANCIAL AUDITS, SINGLE AUDITS AND COMPLIANCE

ATTESTION EXAMINATIONS FOR THE PERIOD(S) ENDING

JUNE 30, 2007, SEPTEMBER 30, 2007, AND DECEMBER 31, 2007.

F = Financial S = Single Audits C = Compliance Attestation Examinations

*AGENCY*	F	C	S	*DATE* *RELEASED*
Architect of the Capital
Arts Council and Foundation
Attorney Registration and Disciplinary Commission (12/31/07)
Board of Admissions to the Bar (9/30/07)
Board of Examiners
Board of Higher Education
Capital Development Board
Chicago State University
Chicago State University Foundation
Chicago Technology Park
Civil Service Commission
Commission on Government Forecasting and Accountability
Comptroller – Fiscal Officer
Correctional Industries
Court of Claims
Criminal Justice Information Authority & IL Integrated Justice Information System
DCMS – Deferred Compensation Plan – (12/31/07)
Deaf and Hard of Hearing Commission
Department of Agriculture
Department of Central Management Services
Department of Children and Family Services
Department of Employment Security
Department of Financial and Professional Regulation
Department of Healthcare and Family Services
Department of Human Rights
Department of Human Services - Central Office and Lincoln Developmental Center
Dept. of Human Services - Alton Mental Health Center
Dept. of Human Services - Center for Rehabilitation & Education
Dept. of Human Services - Chester Mental Health Center
Dept. of Human Services - Chicago Read Mental Health Center
Dept. of Human Services - Choate Mental Health Center
Dept. of Human Services - Elgin Mental Health Center
Dept. of Human Services - Fox Developmental Center
Dept. of Human Services - Howe Developmental Center
Dept. of Human Services - Jacksonville Developmental Center
Dept. of Human Services - Kiley Developmental Center
Dept. of Human Services - Ludeman Developmental Center
Dept. of Human Services - Mabley Developmental Center
Dept. of Human Services - Madden Mental Health Center
Dept. of Human Services - McFarland Mental Health Center
Dept. of Human Services - Murray Developmental Center
Dept. of Human Services - Rushville Treatment Detention Facility
Dept. of Human Services - School for the Deaf
Dept. of Human Services - School for the Visually Impaired
Dept. of Human Services - Shapiro Developmental Center
Dept. of Human Services - Singer Mental Health and Developmental Center
Dept. of Human Services - Tinley Park Mental Health Center
Department of Labor
Department of Natural Resources
Department of Public Health
Department of Revenue
Department of Transportation
Drycleaner Environmental Response Trust Fund Council
DuQuoin State Fair (09/30/07)
Eastern Illinois University
Educational Labor Relations Board
Emergency Management Agency
Environmental Protection Agency
Executive Office of Inspector General
General Assembly – Senate
General Assembly – House
General Assembly Retirement System
Governors Commission on the Status of Women
Governors Office of Management and Budget
Governors State University
Governors State University Alumni Association
Governors State University Foundation
Guardianship and Advocacy Commission
High School Association
Housing Development Authority
Human Rights Commission
Illinois Commerce Commission
Illinois Conservation Foundation
Illinois Environmental Protection Agency (Fund 270)
Illinois Finance Authority
Illinois Gaming Board
Illinois Grain Insurance Corporation
Illinois Labor Relations Board
Illinois Math and Science Academy
Illinois Math and Science Academy Fund
Illinois Petroleum Resources Board
Illinois Planning Council on Developmental Disabilities
Illinois State Fair (09/30/07)
Illinois State University
Illinois State University Foundation
Illinois Student Assistance Commission, IDAPP and Prepaid Tuition
Illinois Supreme Court
Judges Retirement System
Kankakee River Valley Area Airport Authority
Legislative Audit Commission
Legislative Printing Unit
Legislative Reference Bureau
Legislative Research Unit
Literacy Foundation
Medical District Commission
Medical District Commission at Springfield
Metro. Pier and Exposition Authority
Northeastern Illinois University
Northeastern Illinois University Foundation
Northern Illinois University
Northern Illinois University Alumni Association
Northern Illinois University Foundation
Office of the Governor
Office of the Lieutenant Governor
Secretary of State
Southern Illinois Un