FY11-Arts-Council-Comp-Full

              STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
Performed as Special Assistant Auditors
for the Auditor General, State of Illinois
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
TABLE OF CONTENTS
Page
Agency Officials 1
Management Assertion Letter 2
Compliance Report
Summary 3-4
Accountants’ Reports
Independent Accountants’ Report on State Compliance, on Internal 5-8
Control Over Compliance, and on Supplementary Information for
State Compliance Purposes
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 Expenditures of Federal Awards 13
Notes to the Schedule of Expenditures of Federal Awards 14
Schedule of Appropriations, Expenditures and Lapsed Balances 15-16
Comparative Schedule of Net Appropriations, Expenditures 17-18
and Lapsed Balances
Comparative Schedule of Receipts, Disbursements and Fund Balance 19
(Modified Accrual Basis) – Locally Held Funds
Schedule of Changes in State Property 20
Comparative Schedule of Cash Receipts and Reconciliation 21
of Cash Receipts to Deposits Remitted to the State Comptroller
Analysis of Significant Variations in Expenditures 22
Analysis of Significant Variations in Receipts 23
Analysis of Significant Lapse Period Spending 24
Analysis of Operations
Agency Functions and Planning Program 25-27
Average Number of Employees 28
Service Efforts and Accomplishments (Not Examined) 29
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
1
AGENCY OFFICIALS
ILLINOIS ARTS COUNCIL
Executive Director (5/15/11 to Present) Mr. Terry Scrogum
Acting Executive Director (3/1/11 to 5/14/11) Ms. Rhoda Pierce
Executive Director (2/1/11 to 2/28/11) Vacant
Executive Director (3/1/05 to 1/31/11) Mr. Terry Scrogum
Chief Fiscal Officer Ms. Yazoo Hall
Agency Offices are located at:
James R. Thompson Center
100 West Randolph
Suite 10-500
Chicago, IL 60601-3298
National City Bank Building
One North Old State Capitol Plaza
Suite 345
Springfield, IL 62701-1323
2
January 13, 2012
Illinois
/¥.,\ ~Di::f'P~~ l=iuL: L.: L "'U!:::F·
Council
UAUICYOF
TRE STAll OF IUIIOIS
Pat Quinn
Governor
McGreal & Company, PC
Certified Public Accountants
5740 West 95th Street
Shirley R. Madigan
Chairman
Oak Lawn, Illinois 60453
Ladies and Gentlemen:
Terry A. Scrogum
Executive Director
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 Illinois Arts Council (Council). 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 Council's compliance with the following assertions during the two-year period
ended June 30, 2011. Based on this evaluation, we assert that during the years ended June 30,
2011 and June 30, 2010, the Council has materially complied with the assertions below.
A. The Council 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 Council 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 Council 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 Council 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 negotiable securities or similar assets handled by the Council on behalf of the
State or held in trust by the Council have been properly and legally administered, and
the accounting and recordkeeping relating thereto is proper, accurate and in accordance
with law.
Yours very truly,
lllinois Arts Council
( cer
James R. Thompson Center - 100 W Randolph Street - Suite -500 - Chicago, IL ~0601-3298
312/814-6750 - Toll free in Illinois -1/800-237-6 4 - TTY- 88-261-7957 - FAX- 312/814-1471
E-mail: iac.info@illinois.gov - Web ~· .state.il.us/agency/iac
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
3
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
Compliances and on Supplementary Information for State Compliance Purposes does not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of Current Report Prior Report
Findings 2 3
Repeat findings 1 2
Prior recommendations
implemented or not
repeated 2 2
SCHEDULE OF FINDINGS
Item No. Page Description Finding Type
FINDINGS (STATE COMPLIANCE)
11-1 9 Failure to Adopt Formal Rules for Agency Noncompliance
and Grant Procedures Significant Deficiency
11-2 10 Lack of Reconciliation of State Cash Receipts Noncompliance
Significant Deficiency
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
4
PRIOR FINDINGS NOT REPEATED
Item No. Page Description
A 11 Council Members Terms Expired / Insufficient Number
of Council Members
B 11 Contractual Service Payment Made From Incorrect Fiscal
Year Appropriation
EXIT CONFERENCE
The findings and recommendations appearing in this report were discussed with the
Illinois Arts Council in an exit conference on January 6, 2012. Attending were Jose Roa, Office
of the Auditor General; Terry Scrogum, Executive Director, Illinois Arts Council; Yazoo Hall,
Chief Fiscal Officer, Illinois Arts Council; Thomas McGreal, Special Assistant Audit Partner;
and Michael Morrissey, Special Assistant Audit Manager. Responses to the recommendations
were provided by Yazoo Hall, Chief Fiscal Officer, in a letter dated January 13, 2012.
McGREAL&CoMPANY~ PC
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
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 lllinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of
Illinois, Illinois Arts Council 's 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 the State of lllinois, Ill inois Arts Council is
responsible for compliance with these requirements. Our responsibility is to express an
opinion on the State of Illinois, Illinois Arts Council's compliance based on our examination.
A. The State of Illinois, Illinois Arts Council's 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 State of Illinois, Illinois Arts Council 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 State of Illinois, Illinois Arts Council 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 State of Illinois, Illinois Arts
Council 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.
5
5740 WEST 95TH STREET I OAK LAWN, IL 60453 I 708.422.8600 I FAX 708.422.8642 I WWW.MCGREAL.COM
6
E. Money or negotiable securities or similar assets handled by the State of
Illinois, Illinois Arts Council on behalf of the State or held in trust by the
State of Illinois, Illinois Arts Council have been properly and legally
administered and the accounting and recordkeeping relating thereto is proper,
accurate, and in accordance with law.
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 State of Illinois, Illinois Arts Council’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 State of Illinois, Illinois Arts Council’s compliance with
specified requirements.
In our opinion, the State of Illinois, Illinois Arts Council 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 and 11-2.
Internal Control
Management of the State of Illinois, Illinois Arts Council 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 State of Illinois, Illinois Arts Council’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 State of Illinois, Illinois Arts Council’s internal control
over compliance.
7
A deficiency in an entity’s internal control over compliance exists when the design or
operation of a control 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 purposes 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 items 11-1
and 11-2. A significant deficiency in an entity’s internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance that is less
severe than a material weakness in internal control over compliance, 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 to your office.
The State of Illinois, Illinois Arts Council’s responses to the finding identified in our
examination are described in the accompanying schedule of findings. We did not examine
the State of Illinois, Illinois Arts Council’s responses and, accordingly, we express no
opinion on them.
Supplementary Information for State Compliance Purposes
Our examination was conducted for the purpose of forming an opinion on compliance with
the requirements listed 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 analysis. We have
applied certain limited procedures as prescribed by the Audit Guide as adopted by the
Auditor General to the 2011 and the 2010 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.
8
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, and agency management, and
Council Members and is not intended to be and should not be used by anyone other than
these specified parties.
McGreal & Company, PC
January 13, 2012
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
9
CURRENT FINDINGS – STATE
11-1 Finding: Failure to Adopt Formal Rules for Agency and Grant Procedures
The Illinois Arts Council did not draft or adopt formal agency rules, including rules relating to
grant procedures. Grant expenditures were $8,768,533 and $7,535,334 for fiscal years 2011 and
2010, respectively.
The Illinois Administrative Procedure Act (5 ILCS 100/5 et seq.) states that each agency shall
maintain and file organizational rules, including a current description of the agency’s
organization, current procedures for information requests, and a current description of the
agency’s rulemaking procedures. Additionally, the Illinois Administrative Procedure Act (5
ILCS 100/5-10) and good internal controls require that policy affecting external parties be
adopted and implemented through public rules to fully inform affected persons.
Agency officials stated they consulted with the Illinois Office of the Governor concerning the
process of drafting and adopting organization rules with the Joint Committee on Administrative
Rules (JCAR) and the funding required to carry out the process, but formal agency rules have not
yet been drafted or adopted.
Agency rules prescribe policy and establish procedures to assist management in decision making.
Formal administrative rules can also help protect agencies from legal challenges and give
additional legitimacy to agency actions and agency requests from external parties. Promulgating
formal grant procedures ensures transparency and accountability of State government, can help
protect agencies from legal challenges, and gives additional legitimacy to agency actions and
agency requests from external parties. (Finding Code No. 11-1, 09-1, 07-1)
Recommendation:
We recommend the Agency draft organizational rules and grant procedures, then contact JCAR
for assistance with the formal adoption process.
Agency Response:
The Agency does not currently have the staff or legal support to engage in this process. Due to
the State’s on-going financial crisis, we do not anticipate IAC budget increases to support such
an initiative during the next few fiscal years. The Agency will seek the guidance of the Office of
the Governor on this finding.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
10
11-2 Finding: Lack of Reconciliation of State Cash Receipts
The Illinois Arts Council (Council) did not reconcile its cash receipts received to cash
receipts reported by the Comptroller.
The Council receives cash from the National Endowment of the Arts, the Illinois State
Board of Education, unexpended grant funds, and miscellaneous sources. Cash receipts
were $1,321,045 and $1,613,697 for Fiscal Year 2011 and 2010, respectively. The
Council, however, did not prepare the monthly cash receipt reconciliations to the Office
of the State Comptroller records.
The Statewide Accounting Management System (SAMS) Procedures 25.40.20 requires
State Agencies to reconcile receipt account balances maintained by the Agency with the
Statewide receipt account records maintained by the Comptroller’s Office. The
reconciliation is required to be performed monthly and the Comptroller’s Office notified
of any irreconcilable differences so that corrective actions may be taken.
Council management stated formal reconciliations are not currently performed. Instead,
the Chief Fiscal Officers reviews receipts for accuracy.
Failure to reconcile the Monthly Revenue Status Reports results in non-compliance with
SAMS procedures. In addition, reconciliations ensure the early detection and correction
of errors. (Finding Code 11-2)
Recommendation:
We recommend that the Council perform a formal monthly cash receipts reconciliation as
required by SAMS Procedures.
Agency Response:
The Council receives less than 25 receipts per year and the CFO keeps a list of all
receipts by appropriation and reconciles them by visually comparing the list with the
Comptroller’s report.
Council agrees to perform “formal” monthly cash receipts reconciliations to fully comply
with SAMS Procedures.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
11
PRIOR FINDINGS NOT REPEATED – STATE
A Finding: Council Members Terms Expired / Insufficient Number of Council Members.
As of June 30, 2009, 2 of 16 (13%) Council Members terms had expired. Both of these
Council Members’ terms expired July 1, 2005. Additionally, the Agency did not have the
required number of Council Members. (Finding Code No. 09-2, 07-2)
Disposition – Not Repeated:
During the current examination, we noted the Council had the required 21 members
appointed as of June 30, 2011. Council members were appointed or reappointed by the
Governor.
B Finding: Contractual Service Payment Made From Incorrect Fiscal Year Appropriation.
The Agency made a contractual service payment in the amount of $4,886 from fiscal year
2008 appropriations. The payment included computer technical services performed in
fiscal year 2009. (Finding Code No. 09-3)
Disposition – Not Repeated:
During the current examination, we sampled contractual service payments in part, to
determine if paid from the appropriate fiscal year. Our tests did not disclose any
instances where contractual service payments were made from the incorrect fiscal year.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
12
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 Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Appropriations, Expenditures and Lapsed Balances
Comparative Schedule of Net Appropriations, Expenditures
and Lapsed Balances
Comparative Schedule of Receipts, Disbursements and Fund Balance
(Modified Accrual Basis) – Locally Held Funds
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 accountant’s 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.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Two Years Ended June 30, 2011
13
Federal Federal
Federal Grantor CFDA Number Expenditures
YEAR ENDED JUNE 30, 3011
National Endowment for the Arts:
Promotion of the Arts
Partnership Agreements 45.025 $1,040,227
Promotion of the Arts Grants
to Organizations and Individuals
- Educational Leadership Institute 45.024 183,000
- Mid-Atlantic Foundation 45.024 8,000
$1,231,227
YEAR ENDED JUNE 30, 2010
National Endowment for the Arts:
Promotion of the Arts
Partnership Agreements 45.025 $1,350,115
Promotion of the Arts Grants
to Organizations and Individuals
-Educational Leadership Institute 45.024 206,448
$1,556,563
The accompanying Notes to the Schedule of Expenditures of Federal Awards are an integral part
of this schedule
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Two Years Ended June 30, 2011
14
1. Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant
activity of the Illinois Arts Council and is presented on the modified accrual basis of
accounting. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations.
2. Description of Federal Award Programs
The Agency receives federal funds through the National Endowment for the Arts in the form
of partnership grants and grants to organizations and individuals.
3. Pass-Through and Subrecipient Awards
Of the federal expenditures presented in the schedule, the Illinois Arts Council provided
federal awards to subrecipients as follows:
Program Title Amounts Provided to Subrecipients
2011 2010
Program Grants – Organizations $ 744,700 $ 786,190
Poetry Out Loud 28,000 20,000
Arts Education 55,900 55,920
Underserved 162,000 109,600
Folk Arts - 20,000
American Recovery & Reinvestment Act - 358,600
Education Leaders Institute 183,000 169,000
$1,173,600 $1,519,310
4. Non-Cash Assistance Expended
The Agency did not receive Federal Financial Assistance in the form of noncash assistance,
insurance or loans.
Approximate
Appropriations Expenditures Lapse Period Approximate Approximate
Public Act 96-0956, 96-0957 (Net after Through Expenditures Total Balances
Transfers) 6/30/11 7/01 - 8/31/11 Expenditures Lapsed
APPROPRIATED FUNDS
GENERAL REVENUE FUND - 001
Lump Sums - Operational Expenses $1,862,600 $1,384,279 $34,679 $1,418,958 $443,642
Lump Sums - Operational, Awards & Grants 6,609,300 6,598,363 10,937 6,609,300 0
Subtotal $8,471,900 $7,982,642 $45,616 $8,028,258 $443,642
GOVERNORS DISCRETIONARY APPROPRIATION - 001
Lump Sum and Other Purposes 1,000,000 506,760 403,390 910,150 89,850
Subtotal - Fund 001 $9,471,900 $8,489,402 $449,006 $8,938,408 $533,492
ILLINOIS ARTS COUNCIL FEDERAL GRANT FUND - 657
Cultural Environment Grants & Programs $1,000,000 $718,225 $272,375 $990,600 $9,400
Cultural Environment Grants & Programs 500,000 54,604 - 54,604 445,396
Education Leadership Institute costs 1,000,000 186,024 - 186,024 813,976
Subtotal - Fund 657 $2,500,000 $958,853 $272,375 $1,231,228 $1,268,772
TOTAL - ALL APPROPRIATED FUNDS $11,971,900 $9,448,255 $721,381 $10,169,636 $1,802,264
NON-APPROPRIATED FUNDS
ILLINOIS ARTS COUNCIL STATE TRUST FUND - 402
Encourage Development of Arts in Illinois $147,748 $1,314 $149,062
TOTAL NON APPROPRIATED FUNDS $147,748 $1,314 $149,062
GRAND TOTAL EXPENDITURES - ALL FUNDS $9,596,003 $722,695 $10,318,698
The above data is taken directly from the records of the State Comptroller. Expenditures amounts are vouchers approved for payment by the Agency
submitted to the State Comptroller for payment to the vendor. Approximate lapse period expenditures do not include interest payments approved for
by the Agency and submitted to the Comptroller for payment after August.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
Appropriations for Fiscal Year 2011
Fourteen Months Ended August 31, 2011
15
Appropriations Expenditures Lapse Period
Public Act - 96-0042, 96-0046 (Net after Through Expenditures Total Balances
Transfers) 6/30/10 7/01 - 8/31/10 Expenditures Lapsed
APPROPRIATED FUNDS
GENERAL REVENUE FUND - 001
Personal Services - Bargaining Unit $868,300 $758,630 $3,213 $761,843 $106,457
Social Security - Bargaining Unit 66,400 55,512 245 $55,757 10,643
Personal Services - Non-Bargaining Unit 561,500 463,484 0 $463,484 98,016
Social Security - Non-Bargaining Unit 43,000 34,134 0 34,134 8,866
Lump Sums - Operational Expenses 421,400 163,749 7,206 170,955 250,445
Lump Sums - Operational, Awards & Grants 6,609,300 5,983,220 36,000 6,019,220 590,080
Subtotal - Fund 001 $8,569,900 $7,458,729 $46,664 $7,505,393 $1,064,507
ILLINOIS ARTS COUNDIL FEDERAL GRANT FUND - 657
Cultural Environment Grants & Programs $1,000,000 $967,901 $20,614 $988,515 $11,485
Education Leadership Institute costs 1,000,000 200,760 5,688 206,448 793,552
American Recovery & Reinvestment Act 361,600 361,600 - 361,600 -
Subtotal - Fund 657 $2,361,600 $1,530,261 $26,302 $1,556,563 $805,037
TOTAL - ALL APPROPRIATED FUNDS $10,931,500 $8,988,990 $72,966 $9,061,956 $1,869,544
NON-APPROPRIATED FUNDS
ILLINOIS ARTS COUNCIL STATE TRUST FUND - 402
Arts & Foreign Language Program $117,952 $6,565 $124,517
TOTAL NON-APPROPRIATED FUNDS $ 117,952 $ 6,565 $ 124,517
GRAND TOTAL EXPENDITURES - ALL FUNDS $9,106,942 $79,531 $9,186,473
The above data is taken directly from the records of the State Comptroller. Expenditures amounts are vouchers approved for payment b
the Agency and submitted to the State Comptroller for payment to the vendor.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
Appropriations for Fiscal Year 2010
Fourteen Months Ended August 31, 2010
16
2011 2010 2009
P.A. 96-0956, P.A. 96-0042, P.A. 95-0731
GENERAL REVENUE FUND - 001 96-0957 96-0046
Appropriations (Net After Transfers) $9,471,900 $8,569,900 $15,995,500
Expenditures
Personal Services - $1,225,327 $1,366,234
Pension Continuing Appropriation - - 35,206
Retirement-State Contribution - - 253,208
Social Security - 89,891 100,962
Contractual Services - - 178,190
Travel - - 18,071
Commodities - - 8,008
Printing - - 15,669
Equipment - - 3,153
Electronic Data Processing - - 72,432
Telecommunications Services - - 25,253
Travel and Meeting Expense
(Council and Panel Members) - - 37,314
Lump Sums - Operational Expenses 1,418,958 170,955 -
Lump Sums - Operational, Awards & Grants 6,609,300 6,019,220 -
Grant (Arts Organizations) - - 4,560,850
Grant (Special Constituencies) - - 1,812,200
Grant (Arts Education) - - 1,092,295
Grant (Public Radio and Television) - - 314,100
Grant (International Grant Awards) - - 698,900
Grant (Humanities Programs and Activities) - - 692,200
Grant (Public Radio and TV Administration) - - 4,011,876
Governors Discretionary - Lump Sum 910,150 - -
Total Expenditures 8,938,408 7,505,393 1 5,296,121
Lapsed Balances $ 533,492 $ 1 ,064,507 $ 699,379
FISCAL YEAR
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES, AND LAPSED BALANCES
For the Fiscal Years Ended June 30,
17
2011 2010 2009
P.A. 96-0956, P.A. 96-0042, P.A. 95-0731
96-0957 96-0046
FEDERAL GRANT FUND - 657
Appropriations (Net After Transfers) $ 2,500,000 $ 2 ,361,600 $ 1 ,500,000
Expenditures
Cultural Environment Grants & Programs 990,600 9 88,515 1,280,512
Cultural Environment Grants & Programs 54,604 - -
Education Leadership Institute costs 186,024 2 06,448 -
American Recovery & Reinvestment Act - 3 61,600 -
Total Expenditures 1,231,228 1 ,556,563 1,280,512
Lasped Balances 1,268,772 8 05,037 219,488
TOTAL - ALL APPROPRIATED FUNDS
Appropriations (Net After Transfers) 11,971,900 1 0,931,500 17,495,500
Total Expenditures 10,169,636 9,061,956 16,576,633
Lasped Balances $ 1,802,264 $ 1,869,544 $ 918,867
NON-APPROPRIATED FUNDS
STATE TRUST FUND - 402
Expenditures:
ISBE Arts and Foreign Language Program $ 149,062 $ 124,517 $ 177,000
Total Expenditures $ 149,062 $ 124,517 $ 177,000
GRAND TOTAL, ALL FUNDS
Total Expenditures $ 10,318,698 $ 9,186,473 $ 16,753,633
For Fiscal Year 2009 the expenditures do not reflect interest payments approved and submitted after August 31, 2009.
For Fiscal Year 2010, the expenditure amounts are final and include interest payments made after August 2010. For
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 2011.
FISCAL YEAR
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES, AND LAPSED BALANCES
For the Fiscal Years Ended June 30,
18
2011 2010
#1160 #1160
Illinois Arts Illinois Arts
Council Council
Foundation Foundation
Beginning Fund Balance $ 80,355 $ 78,597
Receipts:
Contributions 1,762 -
Investment Income 1,358 448
Artist Registry 150 350
Grant Revenue - People with Disabilities Program - 1,800
Total Receipts 3,270 2,598
Disbursements:
Commodities 404 294
Contractual Services 25 25
Conference & Meeting Expenses - -
Contributions - -
Grant Expense - People with Disabilities Program - 315
Miscellaneous Expenses 240 206
Total Disbursements 669 840
Ending Fund Balance $ 82,956 $ 80,355
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
COMPARATIVE SCHEDULE OF RECEIPTS, DISBURSEMENTS,
AND FUND BALANCE (MODIFIED ACCRUAL BASIS) - LOCALLY HELD FUNDS
For the Fiscal Years Ended June 30,
19
State Property
Balance at July 1, 2009 $ 226,507
Additions 17,167
Deletions (16,296)
Net Transfers (4,545)
Balance at June 30, 2010 $ 222,833
Balance at July 1, 2010 $ 222,833
Additions 28,902
Deletions (7,236)
Net Transfers (17,312)
Adjustments (41,900)
Balance at June 30, 2011 $ 185,287
Note - This schedule has been reconciled to the property
reports (C-15 Agency Report of State Property)
submitted to the Comptroller.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
SCHEDULE OF CHANGES IN STATE PROPERTY
For the Two Years Ended June 30, 2011
20
2011 2010 2009
General Revenue Fund #001
Prior Year Refund $ 2,407 $ 10,298 $ 8,066
Miscellaneous Receipts 38 110 158
2,445 10,408 8,224
State Trust Fund #402
State Board of Education 145,000 130,000 177,000
Prior Year Refund - 731 -
145,000 130,731 177,000
Federal Grant Fund #657
National Endowment for the Arts 1,173,600 1,109,500 1,382,800
Federal Stimulus - 361,600 -
Prior Year Refund - 1,458 -
1,173,600 1,472,558 1,382,800
Total Cash Receipts
per Agency Records 1,321,045 1,613,697 1,568,024
Add: deposits in transit
at beginning of year 24 87,500 -
Less: deposits in transit
at end of year (157,600) (24) (87,500)
Total deposits remitted to
Comptroller $ 1,163,469 $ 1,701,173 $ 1,480,524
Note - 2009 figures were corrected to reflect a deposit in transit of $87,500
COMPARATIVE SCHEDULE OF CASH RECEIPTS AND RECONCILIATION OF
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
CASH RECEIPTS TO DEPOSITS REMITTED TO STATE COMPTROLLER
For the Fiscal Years Ended June 30,
21
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
FISCAL SCHEDULES AND ANAYLSIS
For the Two Years Ended June 30, 2011
22
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES
Variations in expenditures from year to year which exceeded 20% were as follows:
FISCAL YEAR 2011
General Revenue Fund - 001
The Agency received a lump sum appropriation for operational expenses in 2011. In 2010, the
Agency received a separate appropriation for Personal Services and Social Security and the
balance in lump sum “Operational Expenses”. Comparisons are therefore not available. Overall,
total operational expense appropriation in 2011 decreased 5% from 2010.
The Agency expended $910,150 (100%) under the Governor’s Discretionary lump sum
appropriation in 2011. The Agency was not awarded such funds in 2010.
Federal Grant Fund - 657
Total federal grant expenditures decreased $325,335 (21%) in 2011. The Agency received and
expended $361,600 from the American Recovery and Reinvestment Act (ARRA) stimulus grant
in 2010. This ARRA grant was not awarded in 2011.
FISCAL YEAR 2010
General Revenue Fund - 001
Total 2010 grant expenditures decreased $7,163,201 (54%) from 2009. The Agency’s
appropriation was decreased from the State for grant awards in 2010.
Federal Grant Fund - 657
Grant expenditures increased $276,051 (22%) in 2010. The Agency expended $361,600 from
the grant received from the American Recovery and Reinvestment Act (AARA) stimulus grant in
2010. This ARRA grant was not awarded in 2009.
State Trust Fund - 402
Expenditures decreased $52,483 (30%) in 2010. In 2010, the grant funds were not released in
time for the Agency to replace one part time position in the Arts and Foreign Language Program,
due to one employee leaving State service. In 2009, the Agency’s Arts and Foreign Language
Programs staffed three part-time staff persons.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
FISCAL SCHEDULES AND ANAYLSIS
For the Two Years Ended June 30, 2011
23
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS
FISCAL YEAR 2011
General Revenue Fund - 001
Prior year refund receipts decreased $7,891 (77%) due to a decrease in unexpended grant funds.
Federal Grant Fund - 657
Federal grants from the National Endowment of the Arts (NEA) decreased $361,600 (100%).
The Agency received a federal stimulus grant from the NEA for the American Recovery and
Reinvestment Act in 2010. This grant was not awarded in 2011.
FISCAL YEAR 2010
General Revenue Fund - 001
Prior year refund receipts increased $2,232 (28%) due to an increase in deposits on unexpended
funds.
State Trust Fund - 402
Funding from the Illinois State Board of Education (ISBE) decreased $47,000 (27%) due to the
Agency receiving late funding from ISBE.
Federal Grant Fund - 657
There was a net decrease in federal grants from the National Endowment of the Arts (NEA) of
$88,300. The Agency’s funding from the NEA Partnership Agreement decreased $273,300
(20%). Funding from the NEA for the American Recovery and Reinvestment Act increased
$361,600 for a new federal stimulus grant in 2010.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
FISCAL SCHEDULES AND ANAYLSIS
For the Two Years Ended June 30, 2011
24
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
All lapse period expenditures were obligated prior to June 30. Lapse period expenditures, which
exceeded 20% and $10,000 of the total expenditures, were as follows:
FISCAL YEAR 2011
% of Lapse
Lapse Period Total Period
Expenditures Expenditures Expenditures
General Revenue Fund - 001
Governors Discretionary –
Lump Sum & Other
Purpose $ 403,390 $ 910,150 44%
The appropriated money was not received until late March, 2011. Due to the extensive grant
process, grants were not awarded until the lapse period.
Federal Grant Fund - 657
Cultural Environment
Grants & Programs $ 272,375 $ 990,600 27%
Grant funds were received late in the fiscal year. Due to the extensive grant process, grants were
not awarded until the lapse period.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
25
AGENCY FUNCTIONS AND PLANNING PROGRAM
The Illinois Arts Council was created by the Illinois General Assembly in 1965 through the Arts
Council Act (20 ILCS 3915). The agency is governed by 21 private citizens from throughout
Illinois. These Council members are chosen for their commitment to the arts and are appointed
by the Governor. The members serve in a voluntary, non-paid capacity and are responsible for
developing the state’s public arts policy, fostering quality culturally diverse programs, and
approving grant expenditures. The Council members are appointed for four year terms. The
Governor designates the Chairman. Many of the Council members are reappointed by the
Governor for an additional four year term. Council members do not receive compensation, but
are entitled to reimbursement of expenses incurred in the performance of their duties.
Advisory panels are composed of volunteer experts from Illinois and are appointed by the
Council Chair to assist the Council in the review of grant applications and to provide expertise
on policy and program development. Panelists are selected through open nominations and serve
for one year terms.
FUNCTIONS
The functions of the Council are directed by the Council’s mission statement: “building a strong,
creative and connected Illinois through the engagement of all Illinoisans in the pursuit of,
participation in, and enjoyment of the arts.”
The Council received funds through the State of Illinois General Revenue Fund appropriations
and federal grants from the National Endowment for the Arts. The Council also received money
through the State Trust Fund for an ongoing project with the Illinois State Board of Education.
The State of Illinois’ support of the arts includes production of theater, music, dance, ethnic and
folk art, literature, exhibitions, media and visual art, as well as public benefits to the community.
These benefits include; attracting and retaining businesses and residents, revitalizing downtowns,
drawing tourists, providing a basis for quality elementary and secondary education, vitalizing
neighborhoods, connecting people, and improving the quality of life. People of all regions,
ages, cultures, abilities and economic conditions make arts happen throughout Illinois, through
numerous grant programs from the Illinois Arts Council.
Funding from the Council benefits artists and arts organization, support art organization’s
education programs that provide art experiences for schools and communities, provides operating
support to art institutions and support for seminars and workshops.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
26
AGENCY FUNCTIONS AND PLANNING PROGRAM (Continued)
PLANNING PROGRAM
The Council developed a Strategic Plan for 2007-2012. The Council’s stated core values include
diversity of the arts and culture in Illinois, the pursuit of excellence of arts experiences, long-term
sustainability of the arts, partnership and collaboration between the arts and community
throughout Illinois, and building public will for the value of the arts in building vital, prosperous
and livable communities.
The Council set forth the following objectives in its Strategic Plan:
 A growing number of Illinoisans will understand and affirm the role and value of
the arts and creativity to themselves, their community, and our State.
 The arts and cultural community, statewide, will be stronger and better connected,
to each other and to the broader community, and will use these new connections
to advance a more vital and robust landscape for the entire State.
 All Illinoisans, particularly children and those who are currently underserved, will
experience a significant increase in their opportunities to participate in, learn
from, and enjoy the arts.
 The Illinois Arts Council will be focused, efficient and effective organization,
better equipped to anticipate and respond to the needs and opportunities of the arts
and cultural community across the State.
Despite the State’s historic budget crisis and the decreased funding levels, the Illinois Arts
Council has implemented many of their strategic objectives and strategies. Some of the
accomplishments included: developed the Individual Artist Support Initiative to assistant artists
in realizing their professional goals and producing a body of work for public viewing, hosted
leaders of diverse cultures from across the country in the Open Dialogue XII, launched the
Illinois Cultural Data Project, an online financial and management tool, and upgraded the Illinois
Arts Council website.
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
27
AGENCY FUNCTIONS AND PLANNING PROGRAM (Continued)
The Illinois Arts Council shares board member with the Illinois Arts Council Foundation. These
board members meet periodically, and actively plan aspects of the Council. The current
members are:
Shirley R. Madigan – Chairman Lisa M. Dent-Bielefeldt
Andy Van Meter – Secretary Jennifer Levine
Rhonda A. Pierce – Vice Chairman Peggy A. Montes
Virginia G. Bobins Barry E. Moore, Ph.D.
Patrice Bugelas-Brandt Elaine C. Muchin
William E. Brattain, Ph.D. Honorable Sheila M. O’Brien
Christina Kemper Gidwitz Howard A. Tullman
Jodie Shagrin Kavensky Valerie King
Beth Boosalis Davis Henry Godinez
Desiree Grode Donald T. Wiener
Carmen Lonstein
AVERAGE NUMBER OF EMPLOYEES
A comparative statement of the average number of persons employed by the Illinois Arts Counci
at full-time equivalents is presented below:
2011 2010 2009
Administration
Executive Director 1 1 1
Deputy Director 1 1 1
Fiscal Office 3 3 3
Grants Office 2 2 3
Support Staff 3 3 4
Public Information 1 1 1
11 11 13
Programs
Program Coordinaators 1 1 5
Program Assistants 5 5 1
Clerical Staff 0 0 1
6 6 7
Partnership
Illinois State Board of Education 1 1 1
Total Employees 18 18 21
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
For the Two Years Ended June 30, 2011
Fiscal Year
ANALYSIS OF OPERATIONS
28
STATE OF ILLINOIS
ILLINOIS ARTS COUNCIL
ANALYSIS OF OPERATIONS
FOR THE TWO YEARS ENDED JUNE 30, 2011
29
SERVICE EFFORTS AND ACCOMPLISHMENTS (Not Examined)
The Illinois Arts Council (Council) improves economic vitality and quality of life in Illinois by
investing grant funds in the nonprofit arts sector, advancing arts education, providing technical
assistance, and promoting an encouraging atmosphere for creative artists to live and work.
The Council has created public value which revolves around collective purposes of cultural
preservation, economic development, civic engagement and an increased quality of life for as
many Illinois citizens as possible.
In 2010, the Council made advancements on several strategic goals, including facilitating a
national symposium of diverse cultures to plan for equitable funding, changing demographics,
cultural policy, and emerging generations of arts leaders; and implementing the Illinois Cultural
Data Project to include all general operating grant recipients and individual artists.
In 2011, the Council increased its focus on partnering with community based and local arts
organizations to strengthen their current fundraising and resource development skills to better
serve the entire State. These advancements have not only been well-received and beneficial to
the field, they have also saved money for the State of Illinois and helped the Council to become a
more focused, efficient, and effective organization.
FY 11 FY 10 FY 09
Grant applications received 1,062 1,545 2,537
Grants (in thousands) $8,697 $7,709 $14,461