Legislative Printing Unit. Compliance Examination for the Two Years Ended June 30, 2011

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
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LEGISLATIVE PRINTING UNIT
COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
3
1
1
Release Date: January 11, 2012
SYNOPSIS
• The Legislative Printing Unit did not maintain adequate control over their commodities inventory.
• The Legislative Printing Unit did not exercise adequate controls over voucher processing.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
EXPENDITURE STATISTICS
Total Operating Expenditures.............................
1,992,961$
2,063,821$
2,425,016$
Average Number of Employees..........................
27
28
30
SELECTED ACTIVITY MEASURES (Not Examined)
2011
2010
2009
Total number of jobs completed.........................
3,159
2,846
3,526
Total number of impressions...............................
16,538,972
20,141,473
27,694,796
During Examination Period:
Mr. Ronald Rhone (12/16/10 to present)
Vacant (1/1/10 to 12/15/10)
Mr. John Rodems (through 12/31/09)
Currently:
Mr. Ronald Rhone
LEGISLATIVE PRINTING UNIT
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
EXECUTIVE DIRECTOR
2009
2010
2011iii
Commodities inventory was overstated by $5,457
LPU agreed with auditors
Vouchers were approved late
Required interest was not paid
LPU agreed with auditors
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROL OVER COMMODITIES INVENTORY
The Legislative Printing Unit (LPU) did not maintain adequate control over their commodities inventory.
During our test counts of the commodities inventory, we noted 13 of 25 (52%) items counted did not match the perpetual inventory records resulting in the inventory being overstated by $5,457. (Finding 1, page 9)
We recommended LPU strengthen internal controls over the recording and tracking of their commodities inventory by reviewing their inventory and recordkeeping practices to ensure accuracy.
LPU agreed with our recommendation and stated they are currently in the process of updating the Job Tracking System which monitors the LPU commodities inventory. In order to test inventory balances, some test count transactions were entered to increase inventory balances. These test transactions were never deleted thus resulting in an overstatement of some inventory items. LPU stated when the Job Tracking System update is complete, they will ensure all commodities balances are correct and that test counts are accurate.
INADEQUATE CONTROLS OVER VOUCHER PROCESSING
LPU did not exercise adequate control over voucher processing. We noted the following:
• Fifty-five of 133 (41%) vouchers tested totaling $165,215 were approved for payment from 2 to 54 days late.
• The required interest totaling $4,422 was not paid on 16 of 133 (12%) vouchers tested. (Finding 2, page 10)
We recommended LPU ensure all interest owed on vouchers is paid and ensure vouchers are approved within the required time frame.
LPU agreed with our recommendation and stated they will more timely complete the voucher process in the future. They also stated prompt payment interest will be paid timely on all future vouchers. iv
OTHER FINDING
The remaining finding pertains to controls over State property. This finding is reportedly being given attention by LPU. We will review LPU’s progress towards implementation of our recommendation in our next examination.
AUDITORS’ OPINION
We conducted a compliance examination of the Legislative Printing Unit as required by the Illinois State Auditing Act. The Legislative Printing Unit has no funds that require an audit leading to an opinion of financial statements.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:PH:pp
AUDITORS ASSIGNED
The compliance examination was performed by the Auditor General’s staff.