REPORT DIGEST DEPARTMENT OF NUCLEAR SAFETY FINANCIAL AND COMPLIANCE AUDIT Summary of Findings:
WILLIAM G. HOLLAND Iles Park Plaza |
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DEPARTMENT OF NUCLEAR SAFETY
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 1997
EXPENDITURE STATISTICS | FY 1997 |
FY 1996 |
FY 1995 |
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$44,200,110 $24,066 |
$57,285,584 $23,085 |
$30,629,443 $22,974 |
SELECTED ACTIVITY MEASURES | FY 1997 |
FY 1996 |
FY 1995 |
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3 |
3 |
3 |
AGENCY DIRECTOR(S) | |
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A full-time internal auditor would have been able
to perform several of the tasks contracted to outside
parties at approximately one-forth of the contract cost In Fiscal Year 1997, inspectors accumulated over 650 hours of compensatory time |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS CONTRACTING INTERNAL AUDITING SERVICES The Department of Nuclear Safety contracted with an outside accounting firm to perform auditing and consulting services, several of which could have been performed by an internal auditor at a lower cost. The Department contracted with an outside accounting firm on August 2, 1994 to perform auditing and consulting work. The contract was amended six times to extend or adjust the scope of work. The contractor was paid approximately $185,000 during 1996 and $210,000 during fiscal year 1997 for performing internal auditing work and various other tasks, including oversight of contractors, development of rules and regulations, attendance at seminars and development of systems work. Salary and fringe benefits for a full-time internal auditor would have been about $52,300 a year for fiscal year 1997. This person would have been able to perform several of the tasks contracted to outside parties at approximately one-forth of the contract cost. (Finding 1, page 17) We recommended the Department consider hiring a full-time internal auditor to perform tasks now done under contract. The Department responded that it would take the recommendation under advisement but stated that given the complexity of the department's programs, an internal auditor with sufficient technical background would be required and that the department would probably expend considerably more per year on a qualified internal auditor than the auditor stated in the finding. We disagreed with the Department's position. LACK OF COMPENSATORY TIME POLICY FOR RESIDENT INSPECTORS The Department of Nuclear Safety did not have written policies during the audit period for its compensatory time program for Resident Inspectors. Resident Inspectors are merit compensatory employees classified as Nuclear Engineer II's (salary range $47,508 to $82,260) and are exempt from the Department of Central Management Services personnel policies. The Department began granting compensatory time to these employees in 1996 but did not have written policies. Officials said for the most part they followed CMS policies. CMS policies state that employees shall not accrue compensatory time in less than one-half hour segments and that compensatory time shall be liquidated at the end of the fiscal year. Nuclear Safety Resident Inspectors accrued and used compensatory time in less than one-half hour increments and carried time over from one fiscal year to another. In fiscal year 1997, inspectors accumulated approximately 652 hours of compensatory time, used about 616 hours, and carried over about 139 hours into FY 1998, including prior year balances. Further, compensatory time was not indicated on official time sheets. (Finding 2, page 19) We recommended the Department review the need for the Resident Inspector compensatory time program, and if it was found necessary, to adopt written procedures governing the accrual and use of compensatory time. We also recommended the Department require official time records of Resident Inspectors to include compensatory time. The Department stated it will take the recommendations under advisement but noted that on February 28, 1998, the Nuclear Safety Engineer II personnel voted in favor of inclusion in the union. Timekeeping practices for Resident Inspectors will adhere to the AFSCME bargaining unit contract procedures. AUDITORS' OPINION Our auditors state that the financial statements for the Illinois Department of Nuclear Safety as of June 30, 1997 and June 30, 1996 are presented fairly. _____________________________________ WGH:KMC:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were
Berger, Goldstein & Company. |