April 13, 2012

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 of the operations of the Office of the Auditor General for the third quarter of FY 2012 ending March 31, 2012.

FISCAL MATTERS


FY 2012 – THIRD QUARTER
	Appropriation	Expended	Obligated	Balance
GRF Operations:
Personal Services	$5,551,000	$4,365,447	$0	$1,185,553
Social Security	$425,000	$321,498	$0	$103,502
Contractual Services	$659,000	$506,149	$149,321	$3,530
Commodities	$15,000	$3,967	$0	$11,033
Printing	$20,000	$5,319	$0	$14,681
Equipment	$20,000	$9,955	$0	$10,045
EDP	$37,000	$28,128	$4,500	$4,372
Telecommunications	$75,000	$41,276	$0	$33,724
Oper. Of Auto. Equip.	$5,000	$2,059	$0	$2,941
GRF Operations Total	$6,807,000	$5,283,798	$153,821	$1,369,381
Audit Expense Fund
Audit/Studies/Invest.	$19,559,700	$9,445,314	$4,992,836	$5,121,550

PERSONNEL

PERSONNEL

	01/01/2012	Appointments	Separations	Transfers	03/31/12

Springfield	78	7	0	0	85
Chicago	12	0	0	0	12

TOTAL	90	7	0	0	97

CONTRACTS
During the third quarter of Fiscal Year 2012, the Office of the Auditor General entered into two Compliance audit contracts.

TRAINING

Third Quarter Fiscal Year 2012

During the third quarter of Fiscal Year 2012, OAG-sponsored training included:

§ Introduction to the OAG

§ Illinois OAG Audit Policies and Procedures

§ Contract Management

§ OAG Audit Issues Update: January 2012

§ OAG Audit Policies and Procedures Follow-up Roundtable

§ Performance Audit Writing Roundtable

§ 16th Annual Governmental GAAP Update

§ OAG Audit Issues Update: March 2012

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

§ Anti-Corruption: What Every Internal Auditor Needs to Know

§ ISACA: Governance, Tying Together the Three Lines of Defense

§ Information Protection and Authentication

§ GASB Proposed Changes to Pension Reporting

§ Recognizing and Reporting Child Abuse

§ PCI DSS Readiness

§ Security Management in the Cloud

§ Essential Skills for the First-Time Manager or Supervisor

§ IT Roadmap Conference & Expo

§ Diagnosing the Enablers of Fraud

§ Enterprise Risk Management

PERFORMANCE AUDITS

PERFORMANCE AUDITS
IN PROGRESS


AUDITS		ESTIMATED RELEASE DATE

l	ISP’s Administration of the Firearm Owners Identification Card Act	Spring 2012 (Released 4/5/12)
	*(House Resolution No. 89)*
l	IDOT’S Implementation of Life Cycle Cost Analysis	Spring 2012
	*(LAC Resolution No. 140)*
l	Workers’ Compensation Program *(House Resolution No. 131)*	Spring 2012
l	College Illinois! Prepaid Tuition Program	Spring 2012
	*(House Resolution No. 174)*
l	All Kids *(P.A. 95-985)*	Summer 2012
l	Management Positions in the Executive Branch	Summer 2012
	*(LAC Resolution No. 141)*
l	State Public Universities *(LAC Resolution No. 143)*	Fall 2012


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 the 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 47 total FY 11 audits to perform; 44 are of Regional Offices of Education and 3 are of Intermediate Service Centers. As of March 31, 2012, 12 fiscal year 2011 audits have been released.

FINANCIAL AUDITS, SINGLE AUDITS AND
	COMPLIANCE ATTESTATION EXAMINATIONS

The following is a listing of financial audits, single audits and compliance attestation examinations for the period(s) ending June 30, 2011, September 30, 2011 and December 31, 2011. As the year progresses the “date released” column along with type of agency engagement columns will be completed.


FINANCIAL AUDITS, SINGLE AUDITS AND COMPLIANCE
ATTESTATION EXAMINATIONS FOR THE PERIOD(S) ENDING
JUNE 30, 2011, SEPTEMBER 30, 2011 AND DECEMBER 31, 2011

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

AGENCY	F	C	S	DATE RELEASED
Architect of the Capitol		X		12-21-11
Arts Council		X		03-06-12
Arts Council Foundation	X	X		03-06-12
Attorney Registration and Disciplinary Commission *(12/31/11)*
Board of Admissions to the Bar *(9/30/11)*
Board of Examiners
Board of Higher Education
Capital Development Board	X			03-06-12
Chicago State University	X	X	X	03-22-12
Civil Service Commission		X		11-29-11
Commission on Government Forecasting and Accountability		X		03-27-12
Comptroller - *Fiscal Officer Responsibilities*
Court of Claims
Criminal Justice Information Authority & IL Integrated
- *Justice Information System*		X		03-06-12
DCMS - Deferred Compensation Plan - *(12/31/11)*
Deaf and Hard of Hearing Commission		X		12-21-11
Department of Agriculture
Department of Central Management Services
Department of Employment Security	X	X		02-28-12
Department of Healthcare and Family Services
Department of Healthcare and Family Services
*- Local Government Health Insurance Reserve Fund*

FINANCIAL AUDITS, SINGLE AUDITS AND
	COMPLIANCE ATTESTATION EXAMINATIONS

AGENCY	F	C	S	DATE RELEASED
Department of Healthcare and Family Services
*- Teacher Health Insurance Security Fund*
Department of Healthcare and Family Services
*- Community College Health Insurance Security Fund*
Department of Human Rights		X		02-28-12
Department of Human Services
Department of Labor		X		03-13-12
Department of Natural Resources (Capital Asset Account)	X			03-22-12
Department of Public Health
Department of Revenue
Department of Transportation
Drycleaner Environmental Response Trust Fund Council
DuQuoin State Fair (09/30/11)
Eastern Illinois University	X	X	X	03-08-12
Emergency Management Agency
Environmental Protection Agency (Water Revolving Fund)	X			03-06-12
Executive Ethics Commission
Executive Office of Inspector General
General Assembly - Senate		X		03-13-12
General Assembly - House		X		03-13-12
General Assembly Retirement System	X			02-21-12
General Assembly Retirement System
Governor's Office of Management and Budget
Governors State University	X	X	X	03-08-12
Guardianship and Advocacy Commission		X		03-06-12
High School Association
Human Rights Commission		X		01-26-12
Illinois Commerce Commission
Illinois Commerce Commission - WETSA
Illinois Conservation Foundation	X	X		02-09-12
Illinois Educational Labor Relations Board

FINANCIAL AUDITS, SINGLE AUDITS AND
	COMPLIANCE ATTESTATION EXAMINATIONS

AGENCY	F	C	S	DATE RELEASED
Illinois Finance Authority	X			03-22-12
Illinois Finance Authority
Illinois Gaming Board	X			03-20-12
Illinois Grain Insurance Corporation	X	X		03-27-12
Illinois Housing Development Authority	X			11-03-11
Illinois Housing Development Authority		X	X	03-08-12
Illinois Labor Relations Board		X		02-28-12
Illinois Math and Science Academy		X		02-28-12
Illinois Math and Science Academy Fund	X	X		01-11-12
Illinois Council on Developmental Disabilities		X		12-21-11
Illinois Power Agency
Illinois State Fair *(09/30/11)*
Illinois State University	X	X	X	03-20-12
Illinois Student Assistance Commission
Illinois Student Assistance Commission, IDAPP
Illinois Student Assistance Commission, Prepaid Tuition
Illinois Supreme Court		X		03-06-12
Judges Retirement System	X			02-21-12
Judges Retirement System
Kankakee River Valley Area Airport Authority	X	X		12-21-11
Legislative Audit Commission		X		03-06-12
Legislative Printing Unit		X		01-11-12
Legislative Reference Bureau
Legislative Research Unit		X		02-09-12
Literacy Foundation
Medical District Commission		X		01-26-12
Mid Illinois Medical District
Metro. Pier and Exposition Authority
Northeastern Illinois University	X	X	X	03-08-12
Northern Illinois University	X			03-08-12
Northern Illinois University

FINANCIAL AUDITS, SINGLE AUDITS AND
	COMPLIANCE ATTESTATION EXAMINATIONS

AGENCY	F	C	S	DATE RELEASED
Office of the Governor		X		02-28-12
Office of the Lieutenant Governor		X		02-28-12
Secretary of State
Southern Illinois University
State Board of Education
State Board of Elections		X		03-27-12
State Board of Investment	X			01-05-12
State Board of Investment		X		02-09-12
State Employees' Retirement System	X			02-21-12
State Employees' Retirement System
State Universities Retirement System	X			01-11-12
State Universities Retirement System		X		02-09-12
Statewide Financial Audit
Statewide Single Audit - *Federal Funds*
Supreme Court Historic Preservation Commission
Teachers' Retirement System	X			01-11-12
Teachers' Retirement System		X		02-28-12
Teachers’ Pension and Retirement System - *Chicago*		X		03-06-12
Toll Highway Authority (12/31/11)
Treasurer - *College Savings Plan*	X			03-20-12
Treasurer - *Fiscal Officer Responsibilities*
Treasurer - *Illinois* *Funds*	X			03-06-12
Treasurer - *Non-Fiscal Officer*
Universities Civil Service Commission		X		11-03-11
University of Illinois	X			01-05-12
University of Illinois		X	X	03-29-12
Upper River Valley Development Authority
Western Illinois Economic Development Authority
Western Illinois University	X			02-21-12
Western Illinois University		X	X	03-27-12
Workers’ Compensation Commission	X	X		02-28-12

INFORMATION SYSTEMS AUDITS
	These audits are components of each agency's regularly scheduled financial audits, single
audits and compliance attestation examinations for the period ending June 30, 2011.


INFORMATION SYSTEMS AUDITS
AUDITS INITIATED AND/OR COMPLETED
IN FISCAL YEAR 2012

l		Comptroller
l		Department of Central Management Services - BCCS Service Organization Review
l		Department of Central Management Services
l		Department of Employment Security
l		Department of Healthcare and Family Services
l		Department of Human Services
l		Department of Public Health
l		Department of Revenue
l		Governor’s Office of Management and Budget
l		Illinois Commerce Commission
l		Illinois Emergency Management Agency
l		Illinois Finance Authority
l		Illinois State Toll Highway Authority
l		Illinois State University
l		Northeastern Illinois University
l		Northern Illinois University
l		Secretary of State
l		Southern IL University
l		State Board of Elections
l		State Employees' Retirement System
l		State Universities Retirement System
l		Teachers’ Retirement System

EMERGENCY PURCHASES

The Illinois Procurement Code requires agencies expending funds in an emergency to file an affidavit with the Auditor General within 10 days after the procurement, setting forth the amount expended, the name of the contractor, and the circumstances requiring the emergency purchase. The Auditor General, in turn, is required to file a quarterly report with the Commission and the Governor setting forth a complete listing of all emergency purchases reported during that quarter. The latest report is for the third quarter of Fiscal Year 2012 and it contains one hundred and twelve filings with this office.

Yours truly,

WILLIAM G. HOLLAND

Auditor General