Office of the Lieutenant Governor. 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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OFFICE OF THE LIEUTENANT GOVERNOR
COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
2
1
0
Release Date: February 28, 2012
SYNOPSIS
• The Office of the Lieutenant Governor did not have adequate controls over the recording and reporting of State property
• The Office of the Lieutenant Governor did not exercise adequate controls over voucher processing
{Expenditures and Activity Measures are summarized on the reverse page.}ii
EXPENDITURE STATISTICS
Total Expenditures...................................................
746,195$
182,927$
2,366,093$
OPERATIONS TOTAL..............................................
746,195$
112,700$
1,781,285$
% of Total Expenditures..........................................
100.0%
61.6%
75.3%
GRANTS TOTAL......................................................
-$
70,227$
584,808$
% of Total Expenditures...........................................
0.0%
38.4%
24.7%
Average Number of Employees...............................
14
7
18
During Examination Period:
Honorable Sheila Simon (1/10/11 - Present) ; Vacant (1/29/09 - 1/10/11)
Currently:
Honorable Sheila Simon
OFFICE OF THE LIEUTENANT GOVERNOR
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
AGENCY DIRECTOR
2009
2010
2011
Note: The above information regarding the number of employees within the Office are annual averages. There were no employees of the Office for the period beginning August 7, 2010 and ending January 10, 2011.iii
The Office could not locate $156,000 of State property
Quarterly Property reports were not filed
Office agrees with auditors
Vouchers were approved late
Required interest was not paid
Payroll vouchers were not appropriately approved
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER STATE PROPERTY
The Office of the Lieutenant Governor (Office) did not have adequate controls over its recording and reporting of State property.
Some of the matters noted in our testing follow:
- The Office could not locate State property with an original cost of $156,000 during its June 2011 inventory certification. (Finding 1, pages 10-11)
- The Office did not file 4 of the 8 (50%) required Quarterly State Property Reports and filed one (13%) report late.
- State property items were not reported or incorrectly reported on the Quarterly State Property Report. (Finding 1, pages 10-11)
We recommended the Office comply with Statewide Accounting Management Systems (SAMS) requirements in the preparation of the Quarterly Fixed Asset Reports and devote adequate resources to ensure property records are maintained and updated timely.
Officials from the Office agreed with the finding. The Office will revise its procedures accordingly and will take the necessary measures to ensure compliance with SAMS requirements.
INADEQUATE CONTROLS OVER VOUCHER PROCESSING
The Office of the Lieutenant Governor did not exercise adequate controls over voucher processing.
Some of the matters noted in our testing follow:
- Twelve of 97 (12%) vouchers, totaling $11,065 were not approved within 30 days.
- Twelve of 97 (12%) vouchers, totaling $25,969 included invoices that were not date stamped.
- Required interest totaling $834 was not paid on 3 of 97 (3%) vouchers tested.
- Four of 14 (29%) payroll vouchers tested totaling $80,859 were not approved by an authorized signer. (Finding 2, pages 12-13)iv
Office agrees with auditors
We recommended the Office strengthen controls over voucher processing to ensure invoices are processed timely and properly approved.
Officials from the Office agreed with the finding. The Office will strengthen internal controls regarding voucher processing to ensure invoices are processed timely and properly approved.
AUDITORS’ OPINION
We conducted a compliance examination of the Office of the Lieutenant Governor as required by the Illinois State Auditing Act. We have not audited any financial statements of the Office for the purpose of expressing an opinion because the Office does not, nor is it required to, prepare financial statements.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:CAE:rt
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors on this examination were McGreal & Company, PC.