Deaf and Hard of Hearing Commission. 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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DEAF AND HARD OF HEARING COMMISSION
COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
2
3
Release Date: December 21, 2011 1
SYNOPSIS
• The Deaf and Hard of Hearing Commission (Commission) did not maintain sufficient controls over the
recording and reporting of its State property.
• The Commission did not maintain adequate controls over its contractual service expenditures.
{Expenditures and Activity Measures are summarized on the reverse page.}
iii
Lack of controls over property
Reports did not reconcile
Equipment not added or removed
timely
Report not filed
Commission agreed with auditors
Contract exceeding $10,000 not filed
with Comptroller
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
PROPERTY CONTROL WEAKNESSES
The Deaf and Hard of Hearing Commission (Commission)
did not maintain sufficient controls over the recording and
reporting of its State property. During testing we noted the
following:
• The Commission’s property and equipment
expenditures processed by the Office of the
Comptroller (Comptroller) did not reconcile to
additions recorded on the Quarterly C-15 reports.
Property and equipment expenditures totaling $2,148
and shipping and installation charges of $114 were
never recorded on the Commission’s property listing
or the C-15’s submitted to the Comptroller.
• The Commission did not timely add and remove
equipment from its property records.
• The Commission filed the Fiscal Year 2010 Annual
Real Property Utilization Report 326 days late.
(Finding 1, pages 8-9)
We recommended the Commission strengthen controls
over the recording and reporting of its State property by
ensuring equipment is recorded at its proper cost and is added
to inventory records in a timely manner. We also
recommended the Commission thoroughly review reports
prepared from internal records for accuracy before submission
to the Comptroller and submit its Annual Real Property
Utilization Report timely.
Commission management accepted the finding and
recommendation and stated they will review their controls to
ensure equipment is properly and timely recorded and all
required reports are submitted timely.
INADEQUATE CONTROLS OVER CONTRACTUAL
SERVICES EXPENDITURES
The Commission did not maintain adequate controls over
its contractual services expenditures.
The Commission entered into a contract with a vendor to
provide catering services for the Commission’s annual
conference which exceeded $10,000. However, the
Commission did not file the contract with the Office of the
Comptroller (Comptroller) and did not prepare and submit a
Contract Obligation Document (COD) with the Comptroller
which is used to obligate the funds for the contract. The
iv
Commission agreed with auditors
Commission then attempted to submit a voucher totaling
$10,524.82 to the Comptroller for payment. When the
Comptroller subsequently rejected the voucher for payment
because no COD was on file, the Commission submitted two
vouchers for $5,262.41 to the Comptroller for payment
resulting in the stringing of payments to avoid the COD filing
requirement. (Finding 2, page 10)
We recommended the Commission ensure contracts
exceeding $10,000 are filed with the Comptroller within 15
days of execution and proper documentation to obligate funds
is submitted to the Comptroller prior to submitting the
vouchers for payment.
Commission management accepted the finding and
recommendation and stated they have implemented controls to
ensure compliance in the future.
AUDITORS’ OPINION
We conducted a compliance examination of the
Commission as required by the Illinois State Auditing Act.
The Commission has no funds that require an audit leading to
an opinion of financial statements.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:JSC
AUDITORS ASSIGNED
This examination was performed by the Office of the Auditor
General’s staff.