State of Illinois Labor Relations Board Compliance Examination

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
This Report Digest and a Full Report are also available on the internet at www.auditor.illinois.gov
LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
6
8
5
Release Date: February 28, 2012
SYNOPSIS
• The Board did not maintain adequate controls over the recording and reporting of State property.
• The Board did not have adequate controls over its receipt processing.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
EXPENDITURE STATISTICS
Total Expenditures......................................................................
1,520,273$
1,445,602$
1,767,184$
Total Receipts...............................................................................
169$
983$
1,287$
Average Number of Employees..................................................
20
20
20
SELECTED ACTIVITY MEASURES (NOT EXAMINED)
2011
2010
2009
Representation cases filed
335
452
407
Charges against labor organization
74
117
100
Charges against employer
295
369
372
Mediation/Arbitration cases
401
393
320
During Examination Period: John Brosnan
Currently: John Brosnan
LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
AGENCY DIRECTOR
2009
2010
2011iii
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER THE RECORDING AND REPORTING OF STATE PROPERTY
The Board did not maintain sufficient controls over the recording and reporting of State property. We noted the following:
• Two of 8 (63%) Quarterly Reports of State Property (C-15’s) prepared by the Board and submitted to the Illinois Office of the Comptroller (IOC) did not accurately reflect Board equipment transactions. The FY10 equipment additions were overstated by $9,519.
• For seven of 25 (28%) addition items tested, the Board temporarily transferred out these items without supporting documentation.
• The Board included two equipment items totaling $10,225 on the property listing that were under an operating lease and not State property.
• One item purchased during the period was not properly added to the property listing resulting in a $705 understatement.
We recommended the Board strengthen controls over the recording and reporting of State property by reviewing their inventory and recordkeeping practices to ensure compliance with statutory and regulatory requirements. (Finding 1, pages 8-9)
Board officials accepted the finding and recommendation and stated they will ensure compliance with recommendation.
INADEQUATE SUPPORT FOR AND UNTIMELY DEPOSIT OF RECEIPT TRANSACTIONS
The Board did not have adequate controls over the deposit of receipts. During our testing we noted the following:
• Five of 19 (26%) receipts tested, totaling $68, iv
were not deposited in a timely manner. The receipts were submitted 3 to 8 days late.
• Four of 19 (21%) receipts and corresponding Treasurer’s Drafts tested, totaling $107, were not submitted to the Illinois Office of the Comptroller (IOC) within 30 days. The Treasurer’s Drafts were submitted between 18 and 54 days late.
We recommended that the Board comply with the State Officers and Employees Money Disposition Act by making timely deposits into the State Treasury. In addition, the Board should submit Treasurer’s Drafts to the IOC in a timely manner. (Finding 2, pages 11-12)
Board officials accepted the finding and recommendation and stated they will ensure compliance with recommendation.
OTHER FINDINGS
The remaining findings are reportedly being given attention by the Board. We will review the Board's progress toward implementation of our recommendations in our next examination.
AUDITORS’ OPINION
We conducted a compliance examination of the Illinois Labor Relations Board as required by the Illinois State Auditing Act. We have not audited any financial statements of the Illinois Labor Relations Board for the purpose of expressing an opinion because the Illinois Labor Relations Board does not, nor is it required to, prepare financial statements.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:MFP
AUDITORS ASSIGNED
Our special assistant auditors for this engagement were Washington, Pittman, & McKeever, LLC.