REPORT DIGEST

FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

SYNOPSIS

• The Department did not assign mentors to all graduates of the Lincoln Challenge Program as required by the State plan filed with the Department of Defense.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (All Funds)

$22,873,543

$23,044,096

$23,631,203

OPERATIONS TOTAL
% of Total Expenditures

$20,231,780
88.5%

$21,317,014
92.5%

$21,601,962
91.4%

Personal Services
% of Operations Expenditures
Average No. of Employees

$4,665,990
23.1%
269

$4,522,420
21.2%
269

$4,088,473
18.9%
274

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$835,153

4.1%

$739,063

3.5%

$656,099

3.0%

Contractual Services
% of Operations Expenditures

$1,946,991
9.6%

$2,060,072
9.7%

$1,716,606
8.0%

Lincoln's Challenge
% of Operations Expenditures

$6,076,398
30.0%

$7,492,528
35.1%

$9,025,804
41.7%

All Other Items
% of Operations Expenditures

$6,707,248
33.2%

$6,502,931
30.5%

$6,114,980
28.4%

$1,646,162
7.2%

$1,685,351
7.3%

$1,518,408
6.4%

$995,601
4.3%

$41,731
0.2%

$510,833
2.2%

• Cost of Property and Equipment

$118,948,927

$115,240,431

$112,992,262

FY 1998

FY 1997

FY 1996

$12,632,953
18,018
1,000,000
0
246,279
$13,897,250

$13,696,856
98,116
0
185,006
221,326
$14,201,304

$14,469,692
507,691
0
18,500
271,367
$15,267,250

During Audit Period: Adjutant General Richard G. Austin
Currently: Adjutant General Richard G. Austin

The Department did not assign mentors to all graduates of the Lincoln Challenge Program

Department management indicated it is difficult to find sufficient numbers of volunteers willing to serve as mentors

INTRODUCTION

The Department of Military Affairs was established by the Military Code of Illinois (20 ILCS 1805 et seq.). The Department acts as the channel of communication between the federal government and the State of Illinois on all matters pertaining to the State Military. The Adjutant General prepares and executes plans for organizing, supplying, equipping, and mobilizing the Organized Militia for use in national defense, State defense, and emergencies.

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO ASSIGN MENTORS - LINCOLN CHALLENGE PROGRAM

 

The Department did not assign mentors to all graduates of the Lincoln Challenge Program as required by the State plan filed with the Department of Defense. Only 60 percent (or 1,100) of the Program's 1,830 graduates from the past five graduating classes had been assigned volunteer mentors.

 

In 1997, a new director of the Lincoln Challenge Program discovered that an employee had intentionally falsified statistics to cover up the Program's previous failure to assign mentors to all graduates. After correcting these statistics, the Department determined that many graduates had no assigned mentor.

 

By not assigning mentors, the Department did not comply with a key component of the youth intervention program. Each graduate of the program is required to be assigned a community volunteer (i.e., a mentor), to serve as a positive role model for the participant and to assist the participant in enrolling in college or becoming employed. (Finding 98-1, pages 10 and 11.)

 

Department management accepted our recommendation to assign mentors to all graduates of the Lincoln Challenge program, but they indicated it is difficult to find sufficient numbers of volunteers willing to serve as mentors. According to the response, the Department's Office of Admissions and Graduate Affairs has been realigned and management expects compliance to improve due to this change. (For previous Agency response, see Digest footnote #1.)

 

 

OTHER FINDINGS

 

The remaining findings are considered less significant and has been given appropriate attention by the Department. We will review progress towards the implementation of our recommendations in our next audit.

 

Responses were provided by the Department's Adjutant General, MG Richard G. Austin.

 

 

AUDITOR'S OPINION

Our auditors state that the Department's fiscal year 1998 and 1997 financial statements for nonshared funds are fairly presented in all material respects.

 

 

_____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JHL:pp

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this engagement were Sikich Gardner & Co, LLP.

 

DIGEST FOOTNOTES

#1 FAILURE TO ASSIGN MENTORS - Previous Agency Response

 

1996: "Agree with finding. The Lincoln's Challenge Program has progressed significantly in recruiting eligible candidates to perform as mentors. The primary difficulty being encountered was ensuring that all mentor candidates received mentor training. We have recently developed a training package, consisting of audio and video tapes and a workbook, that can be completed through correspondence allowing mentors unable to attend a scheduled training class to complete the required training at their home. In addition...we are currently working on agreements with several reputable mentoring organizations.... These organizations agree to partner with the Lincoln's Challenge Program in recruiting, training, and screening eligible candidates to mentor graduates of our program that are returning to their local communities. They will also assist in providing case management for the mentoring relationships through the post-resident phases. Our combined efforts will ensure that all Lincoln's Challenge graduates have an official mentor assigned.