STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
TABLE OF CONTENTS
Page
Agency Officials 1
Management Assertion Letter 2
Compliance Report
Summary 4
Accountant’s Reports
Independent Accountants’ Report on State Compliance, on Internal Control
Over Compliance, and on Supplementary Information for State Compliance
Purposes 6
Schedule of Findings
Current Findings – State Compliance 9
Prior Findings Not Repeated 11
Supplementary Information for State Compliance Purposes
Summary 12
Fiscal Schedules and Analysis
Schedule of Appropriations, Expenditures and Lapsed Balances 13
Comparative Schedule of Net Appropriations, Expenditures
and Lapsed Balances 15
Schedule of Changes in State Property 16
Comparative Schedule of Cash Receipts 17
Reconciliation Schedule of Cash Receipts to Deposits Remitted to the
State Comptroller 18
Analysis of Significant Variations in Expenditures 19
Analysis of Significant Variations in Receipts 20
Analysis of Significant Lapse Period Spending 21
Analysis of Operations
Agency Functions and Planning Program 22
Average Number of Employees 23
Service Efforts and Accomplishments (Not Examined) 24
AGENCY OFFICIALS
EDUCATIONAL LABOR RELATIONS BOARD
Chairman Lynne O. Sered
Executive Director Victor Blackwell
Fiscal Officer Cindy Handy
General Counsel Helen Higgins Kelly
Agency offices are located at:
One Natural Resource Way
Springfield, IL 62702
160 North LaSalle Street
Suite N-400
Chicago, IL 60601
1
2
ILLINOIS EDUCATIONAL lABOR RELATIONS BOAR
Honorable William G. Holland
Auditor General
State oflllinois
lies Park Plaza
740 East Ash
Springfield, IL 62703-3154
April 1 I, 2012
We are responsible for the identification of, and compliance with, all aspects of laws,
regulations, contracts, or grant agreements that could have a material effect on the operations of the
Educational Labor Relations Board. We are responsible for and we have established and
maintained an effective system of, internal controls over compliance requirements. We have
performed an evaluation of the Educational Labor Relations Board compliance with the following
assertions during the two-year period ended June 30, 2011. Based on this evaluation, we assert that
during the year(s) ended June 30, 2010 and June 30, 2011, the Educational Labor Relations Board
has materially complied with the assertions below.
A The Educational Labor Relations Board has obligated, expended, received and used public
• funds of the State in accordance with the purpose for which such funds have been
appropriated or otherwise authorized by law.
B. The '~ducational Labor Relations Board has obligated, expended, received and used public
funds of the State in accordance with any limitations, restrictions, conditions or mandatory
directions imposed by law upon such obligation, expenditure, receipt or use.
C. The Educational Labor Relations Bo.ard 'has complied, in all material respects, with
applicable laws and regulations, inciudi.ng the State uniform accounting system, in its
financia] and fiscal operations. ·
' j '\ ' '
D. State r~ven,ues and receipts col\est~~ ?Y. the Educational Labor Relations Board are in
accordance with applicable laws and r~.gulations and the accounting and recordkeeping of
such revenues and receipts is fair, accurate and in accordance with law.
E. The m<;mey or negotiable securities or similar assets handled by the Educational Labor
Relatio~s Board on behalf of the State or held in trust by the Board have been properly and
!~gaily administered, and the accounting ' and recordkeeping relating thereto is proper,
accurate and in accordance with law.
Internet Address: http://www.state.il.us/agency/ielrb
160 North LaSalle Street, Suite N-400 I Chicago, Illinois 6000l-31 03 1 Telephone: 312/793-3170 1 Facsimile: 312/793-3369
One Natural Resources Way I Springfield, Illinois 62702 1 Telephone: 217/782-9068 1 Facsimile: 217/782-9331
TTY: 1,800/526-0844 (Relay)
. ~ ~~'f'"c ,'
3
Yours very truly,
Educational Labor Relations Board
COMPLIANCE REPORT
SUMMARY
The compliance testing performed during this examination was conducted in accordance
with Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS’ REPORTS
The Independent Accountants’ Report on State Compliance, on Internal Control Over
Compliance and on Supplementary Information for State Compliance Purposes does not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Current Prior
Number of Report Report
Findings 2 4
Repeated findings 1 2
Prior recommendations implemented
or not repeated 3 0
SCHEDULE OF FINDINGS
Item
No.
Page Description Finding Type
FINDINGS (STATE COMPLIANCE)
11-1 9 Failure to employ required staff Significant Deficiency and
Noncompliance
11-2 10 Inadequate segregation of duties Significant Deficiency and
Noncompliance
PRIOR FINDINGS NOT REPEATED
A. 11 Nonpayment of revolving funds
B. 11 Untimely processing of fair share cases
and payments
C. 11 Voucher processing weaknesses
4
EXIT CONFERENCE
A formal exit conference was waived by Cindy Handy, Fiscal Officer, in a
correspondence dated March 26, 2012. Responses to the recommendations were provided by
Cindy Handy, Fiscal Officer, in a correspondence dated March 30, 2012.
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6
SPR INGFIELD OFFICE:
ILES PARK PLAZA
740 EAST ASH • 62703-3154
PHONE: 2 17/782-6046
FAX: 217/785-8222 • TTY: 888/261-2887
CH ICAGO OFFICE:
MICHAEL A. B ILANDIC BLDG. · SU ITE S-900
160 NORTH LASALLE · 60601-3103
PHONE: 312/814-4000
FAX: 3 1 2/814-4006
OFFICE OF THE AUDITOR GENERAL
WILLI.A. M G. HOLLAND
INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE,
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois
Compliance
We have examined the Educational Labor Relations Board's (Board) compliance with the
requirements listed below, as more fully described in the Audit Guide for Financial Audits and
Compliance Attestation Engagements of Illinois State Agencies (Audit Guide) as adopted by the
Auditor General, during the two years ended June 30, 2011. The management of th.e Board is
responsible for compliance with these requirements. Our responsibility is to express an opinion
on the Board's compliance based on our examination.
A. The Board has obligated, expended, received, and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The Board has obligated, expended, received, and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The Board has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the Board are in accordance with applicable laws
and regulations and the accounting and recordkeeping of such revenues and receipts is
fair, accurate and in accordance with law . .
E. Money or ne&otiable securities or similar assets handled by the Board on behalf of the
State or held m trust by the Board have been properly and legally administered and the
accounting and recordkeeping relating thereto 1s proper, accurate, and in accordance with
law.
INTERNET ADDRESS: AUDITOR@MAIL.STATE.IL.US
RECYCLED PAPER· SOYBEAN INKS
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of the
United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the Auditor
General pursuant to the Act; and, accordingly, included examining, on a test basis, evidence about
the Board’s compliance with those requirements listed in the first paragraph of this report and
performing such other procedures as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Board’s compliance with specified requirements.
In our opinion, the Board complied, in all material respects, with the compliance requirements
listed in the first paragraph of this report during the two years ended June 30, 2011. However,
the results of our procedures disclosed instances of noncompliance, which are required to be
reported in accordance with criteria established by the Audit Guide, issued by the Illinois Office
of the Auditor General and which are described in the accompanying schedule of findings as
findings 11-1 through 11-2.
Internal Control
The management of the Board is responsible for establishing and maintaining effective internal
control over compliance with the requirements listed in the first paragraph of this report. In
planning and performing our examination, we considered the Board’s internal control over
compliance with the requirements listed in the first paragraph of this report as a basis for
designing our examination procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with the Audit Guide
issued by the Illinois Office of the Auditor General, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the Board’s internal control over compliance.
A deficiency in an entity’s internal control over compliance exists when the design or operation
of a control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct noncompliance with the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance such that there is a reasonable possibility that material noncompliance with a
requirement listed in the first paragraph of this report will not be prevented, or detected and
corrected on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, significant deficiencies or material
weaknesses. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, we identified certain
deficiencies in internal control over compliance that we considered to be significant deficiencies
as described in the accompanying schedule of findings as findings 11-1 and 11-2. A significant
deficiency over compliance is a deficiency, or combination of deficiencies, in internal control
7
that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
As required by the Audit Guide, immaterial findings excluded from this report have been reported
in a separate letter.
The Board's responses to the findings identified in our examination are described in the
accompanying schedule of findings. We did not examine the Board's responses and,
accordingly, we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
Our examination was conducted for the purpose of forming an opinion on compliance with the
requirements li sted in the first paragraph of this report. The accompanying supplementary
information as listed in the table of contents as Supplementary Information for State Compliance
Purposes is presented for purposes of additional analys is. We have app lied certain limited
procedures as prescribed by the Audit Guide as adopted by the Auditor General to the 20 II and
20 I 0 Supplementary Information for State Compliance Purposes, except for the Service Efforts
and Accomplishments on which we did not perform any procedures. However, we do not express
an opinion on the supplementary information.
We have not applied procedures to the 2009 Supplementary Information for State Compliance
Purposes, and accordingly, we do not express an opinion thereon.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, Board management, and the
Educational Labor Relations Board and is not intended to be and should not be used by anyone
other than these specified parties.
~JZ._z:>Z~
BRUCE L. BULLARD, CPA
Director of Financial and Compliance Audits
April II , 20 12
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STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
11-1. FINDING (Failure to employ required staff)
The Educational Labor Relations Board (Board) did not employ the minimum number of
staff as required by the Educational Labor Relations Act (Act).
The Board did not employ the required minimum number of attorneys and investigators.
The Act (115 ILCS 5/5(f)) requires the Board to employ a minimum of 8 attorneys and 5
investigators. As of June 30, 2011 the Board employed 6 attorneys and 2 investigators.
Board management stated they lack funding to employ the required number of attorneys and
investigators.
Failure to employ the required number of attorneys and investigators is noncompliance with
the Act. (Finding Code No. 11-1)
RECOMMENDATION
We recommend the Board comply with the Act’s requirements for attorneys and
investigators or seek legislative remedy to the statutory requirements.
BOARD RESPONSE
115 ILCS 5/5(f) states that the requirement for hiring is, “subject to the annual
appropriation” by the General Assembly. To date, no funds have been appropriated to
hire additional staff.
9
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
11-2. FINDING (Inadequate segregation of duties)
The Educational Labor Relations Board (Board) had an inadequate segregation of duties in
the areas of payroll, expenditure control, State property, and receipt processing.
During our testing, we noted the following:
One person had the authority to prepare and approve vouchers, maintain accounting
records, enter transactions into the accounting system, and perform monthly
reconciliations.
One person had the authority to approve all property purchases, tag all inventory,
maintain the property records, and complete the quarterly reports of State property.
One person had the authority to prepare payroll, make adjustments to payroll,
approve payroll, and distribute payroll stubs.
One person had the authority to prepare receipts, deposit receipts, and maintain the
receipts ledger.
Good business practices require the Board maintain adequate segregation of duties in order
to help ensure the safeguarding of assets, prevent improper expenditures, and ensure the
accuracy and reliability of accounting data. The Fiscal Control and Internal Auditing Act (30
ILCS 10/3001) requires State agencies to establish and maintain a system, or systems, of
internal fiscal and administrative controls.
Board management stated they were unable to maintain adequate segregation of duties due
to the limited number of Board employees.
A lack of adequate segregation of duties increases the likelihood that a loss from errors or
irregularities could occur and would not be found in the normal course of employees
carrying out their assigned duties. (Finding Code No. 11-2, 09-3, 07-2)
RECOMMENDATION
We recommend the Board implement procedures to ensure they maintain effective internal
control over the record keeping and accounting duties concerned with procurement,
expenditures, property control, payroll, and receipts.
BOARD RESPONSE
The inadequate segregation of duties finding continues because the Board has no
authorized headcount or funding to hire an assistant fiscal officer or accountant.
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STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
PRIOR FINDINGS NOT REPEATED (STATE COMPLIANCE)
For the Two Years Ended June 30, 2011
PRIOR FINDINGS NOT REPEATED
A. FINDING (Nonpayment of revolving funds)
During the prior period, the Board failed to pay Facilities Management, Statistical
Services, and Telecommunications invoices totaling $45,303 for FY09.
During the current period, our sample testing showed that the Board paid all revolving
fund invoices as required. (Finding Code No. 09-1)
B. FINDING (Untimely processing of fair share cases and payments)
During the prior period, the Board did not timely issue Recommended Decision and
Orders (Orders) or make fair share payments.
During the current period, our sample testing showed Orders were issued timely. In
addition, during the period, there were no problems with final order payments as the
Board no longer collects and disburses the fees for fair share objectors. Those fees are
now collected and disbursed by the objectors’ designated labor unions. (Finding Code
No. 09-2)
C. FINDING (Voucher processing weaknesses)
During the prior period, the Board approved vouchers late and did not pay the required
interest on vouchers. In addition, the Board did not maintain documentation of the date
invoices were received and vouchers were not signed and/or dated by the receiving
officer.
During the current period, our sample testing showed the Board improved its controls
over voucher processing and vouchers contained documentation of the date received and
were signed and dated by the receiving officer. In addition, our sample testing also
showed the Board timely approved vouchers and paid the required interest. (Finding
Code No. 09-4)
11
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Supplementary Information for State Compliance Purposes presented in this section of
the report includes the following:
Fiscal Schedules and Analysis:
Schedule of Appropriations, Expenditures and Lapsed Balances
Comparative Schedule of Net Appropriations, Expenditures
and Lapsed Balances
Schedule of Changes in State Property
Comparative Schedule of Cash Receipts
Reconciliation Schedule of Cash Receipts to Deposits Remitted
to the State Comptroller
Analysis of Significant Variations in Expenditures
Analysis of Significant Variations in Receipts
Analysis of Significant Lapse Period Spending
Analysis of Operations:
Agency Functions and Planning Program
Average Number of Employees
Service Efforts and Accomplishments (Not Examined)
The accountants’ report that covers the Supplementary Information for State Compliance
Purposes presented in the Compliance Report Section states the auditors have applied certain
limited procedures as prescribed by the Audit Guide as adopted by the Auditor General, except
for information on the Service Efforts and Accomplishments on which they did not perform any
procedures. However, the accountants do not express an opinion on the supplementary
information.
12
Approximate
Appropriations Lapse Period Approximate Approximate
(Net After Expenditures Expenditures Total Balances
P.A. 96-0956 Transfers) Through 6/30/11 7/01 - 8/31/11 Expenditures Lapsed
Appropriated Fund
General Revenue Fund - 001
Lump Sum: Operating Expenses $ 999,200 $ 899,556 $ 76,530 $ 976,086 $ 23,114
Total General Revenue Fund $ 999,200 $ 899,556 $ 76,530 $ 976,086 $ 23,114
Non-Appropriated Fund
Fair Share Trust Fund - 996
Fair Share Trust Fund $ 10,957 $ - $ 10,957
Total Fair Share Trust Fund $ 10,957 $ - $ 10,957
GRAND TOTAL, ALL FUNDS $ 910,513 $ 76,530 $ 987,043
Note 1:
Note 2:
Note 3:
Expenditure amounts are vouchers approved for payment by the Agency and submitted to the State Comptroller for payment to the vendor.
Approximate lapse period expenditures do not include interest payments approved for payment by the Agency and submitted to the Comptroller for
payment after August.
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
Appropriations for Fiscal Year 2011
Fourteen Months Ended August 31, 2011
Appropriations, expenditures, and lapsed balances were obtained from State Comptroller records and have been reconciled to the Agency's records.
13
Appropriations Lapse Period
(Net After Expenditures Expenditures Total Balances
P.A. 96-0042 Transfers) Through 6/30/10 7/01 - 8/31/10 Expenditures Lapsed
Appropriated Fund
General Revenue Fund - 001
Personal Services $ 781,700 $ 721,950 $ 31,752 $ 753,702 $ 27,998
State Contributions to Social Security 59,800 52,367 2,294 54,661 5,139
Lump Sum: Operating Expenses 210,300 153,141 23,560 176,701 33,599
Total General Revenue Fund $ 1,051,800 $ 927,458 $ 57,606 $ 985,064 $ 66,736
Non-Appropriated Fund
Fair Share Trust Fund - 996
Fair Share Trust Fund $ 59,068 $ - $ 59,068
Total Fair Share Trust Fund $ 59,068 $ - $ 59,068
GRAND TOTAL, ALL FUNDS $ 986,526 $ 57,606 $ 1,044,132
Note 1: Appropriations, expenditures, and lapsed balances were obtained from State Comptroller records and have been reconciled to the Agency's records.
Note 2: Expenditure amounts are vouchers approved for payment by the Agency and submitted to the State Comptroller for payment to the vendor.
Fourteen Months Ended August 31, 2010
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
Appropriations for Fiscal Year 2010
14
Fiscal Year
2011 2010 2009
General Revenue Fund - 001 P.A. 96-0956 P.A. 96-0042 P.A. 95-0733
P.A. 96-0004
Appropriations
(Net of Transfers) $ 999,200 $ 1,051,800 $ 1,120,650
Expenditures
Personal Services $ - $ 753,702 $ 792,135
State Contribution to State
Employees' Retirement System - - 166,832
State Contributions to Social Security - 54,661 56,725
Contractual Services - - 58,898
Travel - - 13,949
Commodities - - 2,287
Printing - - 1 42
Equipment - - 3,607
Electronic Data Processing - - 8 81
Telecommunications - - 6 12
Operation of Automotive Equipment - - 2,298
Lump Sum: Operating Expenses 976,086 176,701 -
Total Expenditures $ 976,086 $ 985,064 $ 1,098,366
Lapsed Balances $ 23,114 $ 66,736 $ 22,284
Non-Appropriated
Fair Share Trust Fund - 996
Expenditures $ 10,957 $ 59,068 $ -
Total Expenditures $ 10,957 $ 59,068 $ -
GRAND TOTAL - ALL FUNDS
Total Expenditures $ 987,043 $ 1,044,132 $ 1,098,366
Salaries paid from the Comptroller's
Executive Salary Appropriation:
Board Chairman $ 99,560 $ 104,358 $ 104,358
Four Board Members 358,225 375,704 375,704
Total Expenditures from Comptroller's
Executive Salaries Appropriation $ 457,785 $ 480,062 $ 480,062
STATE OF ILLINOIS
Note 1: Fiscal Year 2011 expenditures and related lapsed balances do not reflect any interest payments approved for payment
by the Agency and submitted to the Comptroller for payment after August.
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
For the Fiscal Years Ended June 30,
EDUCATIONAL LABOR RELATIONS BOARD
15
Balance at July 1, 2009
Additions
Deletions
Net Transfers
Balance at June 30, 2010
Balance at July 1, 2010
Additions
Deletions
Net Transfers
(331)
(22,500)
$ 2 52,079
$ 2 52,079
6 ,157
(31,722)
(299)
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
SCHEDULE OF CHANGES IN STATE PROPERTY
For the Two Years Ended June 30, 2011
Equipment
$ 2 83,212
8 88
Balance at June 30, 2011 $ 2 35,405
Note: The above schedule has been derived from Agency records which have been
reconciled to property records submitted to the Office of the Comptroller.
16
2011 2010 2009
General Revenue Fund - 001
Jury Duty $ 30 $ 62 $ -
Copies 3 92 13
Phone Call Reimbursements - - -
Refunds - - -
Total General Revenue Fund $ 33 $ 154 $ 13
Fair Share Trust Fund - 996
Fair Share Trust Fees $ - $ 3 45 $ 40,977
Interest 922 1,506 4,655
Total Fair Share Trust Fund $ 922 $ 1,851 $ 45,632
Total Receipts $ 955 $ 2,005 $ 45,645
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
COMPARATIVE SCHEDULE OF CASH RECEIPTS
For the Fiscal Years Ended June 30,
17
2011 2010 2009
General Revenue Fund - 001
Receipts per Board Records $ 33 $ 154 $ 13
Add: Deposits in Transit, Beginning of Year - - -
Less: Deposits in Transit, End of Year - - -
Deposits Recorded by the Comptroller $ 33 $ 154 $ 13
Fair Share Trust Fund - 996
Receipts per Board Records $ 922 $ 1,851 $ 45,632
Add: Deposits in Transit, Beginning of Year - 33,437 29,100
Less: Deposits in Transit, End of Year - - (33,437)
Interest Earned (922) (1,506) (4,655)
Deposits Recorded by the Comptroller $ - $ 33,782 $ 36,640
For the Fiscal Years Ended June 30,
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
RECONCILIATION SCHEDULE OF CASH RECEIPTS TO
DEPOSITS REMITTED TO THE STATE COMPTROLLER
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STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES
For the Two Years Ended June 30, 2011
Significant variances in expenditures were determined to be changes of $10,000 and at least 20%
between fiscal years, and are explained below.
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2011 AND 2010
General Revenue Fund (001)
Personal Services and State Contributions to Social Security
The decrease in personal services and State contributions was due to the Board receiving a lump
sum appropriation for all expenditures in FY11.
Lump Sum: Operating Expenses
The increase was due to the Board receiving a lump sum appropriation in FY11 for all of its
expenditures.
Fair Share Trust Fund (996)
Fair Share Trust Fund
The decrease was due to the distribution of backlogged fair share fees in FY10 from previous
periods. Beginning in FY10, the Board stopped collecting and disbursing fair share fees, so the
only disbursements from the fair share fund related to prior period cases resulting in less
expenditures each subsequent year.
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2010 AND 2009
General Revenue Fund (001)
State Contribution to SERS, Contractual Services, and other line items
The decrease was due to the Board receiving a lump sum appropriation in FY10 for all items
except personal services and State contributions to social security.
Lump Sum: Operating Expenses
The increase was due to the Board receiving a lump sum appropriation in FY10 for the majority
of its line item expenditures.
Fair Share Trust Fund (996)
Fair Share Trust Fund
The increase was due to the issuance of backlogged fair share fees from prior years.
19
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS
For the Two Years Ended June 30, 2011
Significant variances in receipts were determined to be changes of $10,000 and at least 20%
between fiscal years, and are explained below.
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS BETWEEN FISCAL
YEARS 2011 AND 2010
There were no significant variances in receipts between fiscal years 2011 and 2010.
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS BETWEEN FISCAL
YEARS 2010 AND 2009
Fair Share Trust Fund (996)
Fair Share Trust Receipts
The decrease in fair share receipts between the fiscal years was due to the Board no longer
collecting fees for fair share cases. Beginning in FY10, the objector’s designated labor union
collected and distributed the fair share fees.
20
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
For the Two Years Ended June 30, 2011
Significant lapse period spending was determined to be at least 20% of total expenditures, and is
explained below.
FISCAL YEAR 2011
There was no significant lapse period spending in FY11.
FISCAL YEAR 2010
There was no significant lapse period spending in FY10.
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STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
AGENCY FUNCTIONS AND PLANNING PROGRAM
Board Functions
The Illinois Educational Labor Relations Board (Board) was created on January 1, 1984 to administer the
Illinois Education Labor Relations Act (115 ILCS 5/1 et seq). The Act sets forth the rules, regulations, and
procedures for labor relations and collective bargaining between public educational employers and
educational employees in Illinois. The Act affords public educational employees the right to organize, to
select a labor organization to represent them, and the right to bargain with their educational employer
through their chosen labor representative.
The Board’s primary statutory duties include the following:
1. Investigating representation petitions seeking the certification or decertification of collective bargaining
representatives of public school employees, and conducting hearings and elections upon such petitions;
2. Processing majority interest petitions which seek certification with a showing of majority support;
3. Investigating and processing petitions to modify or clarify bargaining units and the certification of
bargaining units, including conducting hearings and issuing decisions on such petitions;
4. Investigating all charges alleging unfair labor practices filed by either a representative Union, an
individual or by a school district;
5. Rendering determinations on all charges of unfair labor practices after investigation and hearing, and
investigating and adjudicating disputes concerning compliance with Agency decisions and orders;
6. Acting as neutral mediators and conducting mediation sessions to assist parties in resolving disputes
before the Board;
7. Providing panels of private mediators and arbitrators to all parties covered by the Act to assist in
resolving collective bargaining impasses and grievance disputes; and
8. Investigating and adjudicating disputes concerning fair share fees assessed to educational employees by
employee representatives.
The Board consists of a chairperson and four members who are appointed by the Governor with the advice
and consent of the Senate. The current members as of June 30, 2011 are:
Lynne O. Sered, Chairman
Gilbert F. O’Brien
Michael Prueter
Ronald Ettinger
Michael K. Smith
22
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
AGENCY FUNCTIONS AND PLANNING PROGRAM (CONTINUED)
The Board regulates approximately 450,000 Statewide educational employees, about 1,500 bargaining units
and 37 separate unions. The Board’s jurisdiction over educational labor matters encompasses over 1,100
separate public educational institutions including primary, middle, and high schools, community colleges
and universities.
Planning Program
The Board does not have a formal long-range planning program; however, they meet monthly to deliberate
cases and vote to issue its Opinions and Orders on the cases. They also address planning issues such as
budgeting, personnel, and evaluating the efficiency and effectiveness of current policies and procedures.
Monthly case reports, quarterly review of final decisions and a monthly review of the budget are part of the
Board’s agenda.
AVERAGE NUMBER OF EMPLOYEES
The following table, prepared from Agency records, presents the average number of employees, by
function, for the Fiscal Years ended June 30.
2011 2010 2009
Paid from Illinois Educational Labor
Relations Board Appropriation:
Executive Director 1 1 1
Technical Advisors 0 1 1
Investigators and Supervisors 9 8 6
Administrative and Clerical 2 2 4
Total average full-time employees 12 12 12
Paid from Comptroller's Executive
Salaries Appropriation:
Board Chairman 1 1 1
Board Members 4 4 4
Total average Board members 5 5 5
23
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED)
The types of cases processed by the Board fall essentially into three categories:
1) Representation Cases
2) Mediation Cases
3) Unfair Labor Practice Cases
Representation Cases
Representation cases involve processing and issuing opinions regarding questions of representation
including the conducting of orderly elections.
Cases Filed 2011 2010 2009
Petition to Determine Representative 29 24 26
Petition to Decertify Representative 2 6 3
Petition - Representation (Employer) 0 2 2
Petition to Determine Unit 32 22 31
Voluntary Recognition Petition 0 0 3
Unit Clarification Petition 20 26 26
Amended Certification Petition 1 3 8
Total Cases Filed 84 83 99
Disposition of Cases Filed
Certification of Representative 7 9 4
Certification of Voluntary Recognition 0 0 1
Certification of Results 2 1 1
Elections Conducted 15 17 13
Withdrawn 4 12 16
Majority Interest Petition Order of Certification 48 33 39
Executive Dir. Decision & Order 19 32 24
Admin. Law Judge Recommended Decision & Order 1 3 3
Mediations 3 3 5
Pending Investigations 10 16 31
Total Cases 99 126 137
24
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED) (CONTINUED)
Mediation Cases
Mediation cases involve situations in which the parties engaged in collective bargaining have reached an
impasse and may petition the Board to initiate mediation. The Board may also, on its own motion
initiate mediation during this period.
Strikes
The Illinois Educational Labor Relations Act affords educational employees the right to strike under
certain limited circumstances as delineated in Section 13 of the Act. The Board attempts to resolve
potential strike issues through mediation and its Adjudicatory processes. There were four strikes during
the 2009-2010 fiscal year and two strikes during the 2010-2011 fiscal year.
Unfair Labor Practice Cases
Unfair labor practice cases involve charges alleging that the conduct of an employer and/or a union
constitute conduct proscribed by the Educational Labor Relations Act. Charges may be filed by an
employer, an individual, or a labor organization. Once a charge has been filed, it is assigned to an
investigator. Upon conclusion of the investigation, the Executive Director can either dismiss the charge
or issue a complaint and set the matter for hearing if a voluntary settlement has not been reached by the
parties.
The following unfair labor practice case statistics were furnished by Board personnel and are not
examined:
Cases Filed 2011 2010 2009
Unfair Labor Practice Charge
Against Employer 150 184 104
Unfair Labor Practice Charge
Against Union 31 56 27
Unfair Labor Practice Charge
Contesting Fair Share Fee 82 99 116
Total Cases Filed 263 339 247
25
STATE OF ILLINOIS
EDUCATIONAL LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED) (CONTINUED)
Unfair Labor Practice Cases (Continued)
Disposition of Cases 2011 2010 2009
Withdrawn Pursuant to Settlement Agreement 83 114 112
Complaints Issued 106 44 39
Withdrawn 69 69 69
Executive Director's Recommended
Decision and Order 60 105 62
Administrative Law Judge Recommended
Decision and Order 35 43 32
Cases Mediated 38 43 57
Investigations Pending 94 92 48
Total Cases 485 510 419
Board Activity
Board Opinions and Orders Issued 27 19 19
Board Final Orders Issued 61 156 90
Total Cases Processed 88 175 109
Average Cost Per Case Filed
Representation Cases 84 83 99
Unfair Labor Practice Cases 263 339 247
Total Representation and Unfair Labor
Practice Cases 347 422 346
Total Expenditures $ 976,539 $ 9 85,064 $ 1,098,366
Average Expenditure per Case $ 2,814 $ 2 ,334 $ 3,174
26
