2012 Executive Ethics Commission - 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
EXECUTIVE ETHICS COMMISSION
COMPLIANCE ATTESTATION EXAMINATION
For the Year Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
3
0
0
Release Date: April 17, 2012
SYNOPSIS
• The Executive Ethics Commission did not exercise adequate control over the reporting of State property.
• The Executive Ethics Commission failed to ensure emergency procurement affidavits were filed as required by the Illinois Procurement Code.
• The Executive Ethics Commission did not exercise adequate control over its voucher processing.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
EXPENDITURE STATISTICS
Total Expenditures...............................................
4,396,836$
440,726$
OPERATIONS TOTAL.........................................
4,396,836$
440,726$
% of Total Expenditures.....................................
100.0%
100.0%
Personal Services.............................................
3,687,977
226,431
Other Payroll Costs (FICA, Retirement).........
277,115
23,965
All Other Operating Expenditures...................
431,744
190,330
Total Receipts.......................................................
444$
-$
Average Number of Employees..........................
55
2
During Examination Period:
Mr. Chad Fornoff
Currently:
Mr. Chad Fornoff
EXECUTIVE ETHICS COMMISSION
COMPLIANCE EXAMINATION
For the Year Ended June 30, 2011
AGENCY DIRECTOR
2010
2011iii
Property reports overstated
Commission agrees with the auditors
Affidavits not filed timely with the Procurement Policy Board and/or the Office of the Auditor General
Commission agrees with the auditors
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER THE REPORTING OF STATE PROPERTY
The Executive Ethics Commission (Commission) did not exercise adequate control over the reporting of State property. During testing, we noted the Quarterly Reports of State Property (C-15s) prepared by the Commission and submitted to the Office of the State Comptroller (Comptroller) did not agree to property control records maintained by the Commission.
We recommended the Commission ensure all Quarterly Reports of State Property submitted to the State Comptroller’s Office trace to Commission records. (Finding 1, pages 9-10)
Commission officials agreed with our recommendation.
FAILURE TO ENSURE EMERGENCY PROCUREMENT AFFIDAVITS WERE FILED
The Commission failed to ensure emergency procurement affidavits were filed as required by the Illinois Procurement Code. During testing we noted:
• Affidavits for 5 of 23 (22%) emergency procurements tested, totaling $19,816,805, were not filed timely with the Procurement Policy Board. The affidavits in these instances were filed 2 to 80 days late.
• Affidavits for 6 of 23 (26%) emergency procurements tested, totaling $2,134,140, were not filed timely with the Office of the Auditor General. The affidavits in these instances were filed 2 to 10 days late.
• Affidavits for 2 of 23 (9%) emergency procurements tested, totaling $287,961, were not filed with the Office of the Auditor General at all.
We recommended that the Commission implement procedures to ensure all emergency procurement affidavits are filed timely with the Procurement Policy Board and the Office of the Auditor General. (Finding 2, pages 11-12)
Commission officials and Chief Procurement Officers agreed with our recommendation.
INADEQUATE CONTROLS OVER VOUCHER PROCESSING
The Commission did not exercise adequate control over its iv
Inaccurate interest penalty payments
Incorrect detail object codes
Commission agrees with the auditors
voucher processing. We noted:
• Five of 63 (8%) vouchers tested, totaling $54,313, did not result in accurate subsequent interest payments to vendors. We noted these vouchers were paid late, and interest penalty payments were made to vendors as required by the State Prompt Payment Act (Act) (30 ILCS 540/3-2). However, we noted the interest penalty payments were not calculated properly, and as a result, vendors were underpaid a total of $323 for these 5 instances identified during testing.
• Three of 63 (5%) vouchers tested, totaling $1,786, were not coded with proper detail object code.
We recommended the Commission review its procedures for calculating required interest penalty payments to ensure proper dates are used. Further, we recommended the Commission implement and maintain controls to ensure vouchers are coded with the correct Statewide Accounting Management System detail object code. (Finding 3, page 13)
Commission officials agreed with our recommendation.
AUDITORS’ OPINION
We conducted a compliance examination of the Executive Ethics Commission as required by the Illinois State Auditing Act. The Executive Ethics Commission has no funds that require an audit leading to an opinion on financial statements.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:CMD:rt
AUDITORS ASSIGNED
The compliance examination was performed by the Office of the Auditor General’s staff.