STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
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
LEGISLATIVE REFERENCE BUREAU
COMPLIA,.~CE EXA,.\1INATION
For the Two Years Ended June 30, 2011
TABLE OF CONTENTS
Page
Agency Officials 1
Management Assertion Letter 2
Compliance Report
Summary 4
Accounumts'Report
Independent Accountants' Report on State Compliance, on Internal Control Over
Compliance, and on Supplementary Information for State Compliance
Purposes 5
Supplementary Information for State Compliance Purposes
Summary 8
Fiscal Schedules and Analysis
Schedule of Appropriations, Expenditures and Lapsed Balances 9
Comparative Schedule ofNet Appropriations, Expenditures
and Lapsed Balances 11
Schedule of Changes in State Property 12
Comparative Schedule ofCash Receipts 13
Reconciliation Schedule of Cash Receipts to Deposits Remitted
to the State Comptroller 14
Analysis of Significant Variations in Expenditures 15
Analysis of Significant Variations in Receipts 16
Analysis of Significant Lapse Period Spending 17
Analysis of Operations
Agency Functions and Planning Program 18
Average Number of Employees 20
Service Efforts and Accomplishments (Not Examined) 21
AGENCY OFFICIALS
LEGISLATIVE REFERENCE BUREAU
Executive Director (12/1/11 to present)
Acting Executive Director (9/12/11 to 11/30/11)
Executive Director (7/1/11 to 9/11/11)
Executive Director (7/1/09 to 6/30/11)
Chief Fiscal Officer
Board Members
As of June 30, 2011 the Board was comprised of:
Senate Members
Senator Dan Cronin
Senator William Delgado
Senator Kirk Dillard
Senator William Haine
Senator Emil Jones, III
Senator John Millner
House Members
Representative Roger Eddy
Representative Randy Ramey
Representative Robert Pritchard
Bureau office is located at:
Capitol Building, Room 112
Springfield, IL 62706
1
James W. Dodge
Wayne Hedenschoug
Vacant
Richard C. Edwards
Shirley Hatchett
STATE OF IwNOIS
LEGISLATIVE REFERBNCE BUREAU
STATH CAPITOL, RooM 112
SPJuNGfIELD.lwNOIS 62:"06-1300
TEl- (21':') 782-6625· FAX (217) 78s-45~
17 April 2012
Campbell, LLC
Certified Public Accountants
327 Missouri Avenue, Suite 603
East St. Louis, 11 62201
Re: State Compliance Examination - Management Assertion Letter
Ladies and Gentlemen:
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 Legislative Reference Bureau (Bureau). We are responsible for and we
have established and maintained an effective system of, internal controls o,rer compliance
requirements. We have performed an evaluation of the Bureau's compliance with the
following assertions during the two-year period ending June 30, 2011. Based on this
evaluation, we assert that during the years ending June 30, 2010 and June 30, 2011, the
Bureau has materially complied with the assertions below:
A. The Bureau has obligated, expended, received and used public funds ofthe State in
accordance with the purpose for which such funds have been appropriated or
otherwise authorized by law.
B. The Bureau has obligated, expended, received and used public fimds 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 Bureau has complied, in aJI 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 Bureau 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.
2
2
E. Money or negotiable securities or similar assets handled by the Bureau on behalf
of the State or held in trust by the Bureau have been properly and legally
administered, and the accounting and recordkeeping relating thereto is proper,
accurate and in accordance with law.
Yours very truly,
Legislative Reference Bu."'e!!u
JamesW.Dod
/'
3
COMPLL\NCEREPORT
SUMMARY
The compliance testing perfonned during this examination was conducted in accordance
with Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS'REPORT
The Independent Accountants' Report on State Compliance, on Internal Control Over
Compliance and on Supplementary Information for State Compliance Purposes docs not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Findings
Repeated findings
Prior recommendations implemented
or not repeated
Current
Report
oo
o
Prior
Report
o
o
o
SCHEDULE OF FINDINGS
The Bureau did not have any current year or prior year findings.
EXIT CONFERENCE
The results of this examination were discussed with Bureau personnel at an exit conference on April
3,2012. Attending were:
LEGISLATIVE REFERENCE BUREAU
James W. Dodge, Executive Director
Shirley Hatchett, Chief Fiscal Officer
Mark Wamsing, Deputy Director
CAMPBELL, LLC
Johnny E. Campbell, Partner
Joseph Joyner, Supervisor
Dawayne Stewart, In-charge Accountant
Alexandra Jones, Assistant
Leonard Johnson, Assistant
4
OFFICE OF THE AUDITOR GENERAL
Meredith Dean, Audit Manager
Nrmbrrof
Ammc,n lostitut, of (,ntird Public AcCDUntlll~
Ilinais (PA Saurtlrs
-
(A~PB{LLr LL(
(tllll!~d Puhlil Auounl.nl1- NoIn.li p mp nl {omull~CII'
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 ofIllinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of Illinois,
Legislative Reference Bureau's (Bureau) compliance with the requirements listed below, as more
fully described in the Audit Guide for Financial Audits and Compliance Attestation
Engagements ofIllinois State Agencies (Audit Guide) as adopted by the Auditor General, during
the two years ended June 30, 2011. The management of the Bureau is responsible for
compliance with these requirements. Our responsibility is to express an opinion on the Bureau's
compliance based on our examination.
A. The Bureau 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 Bureau 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 Bureau 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 Bureau 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 Bureau on behalf of the
State or held in trust by the Bureau have been properly and legally administered and the
accounting and recordkeeping relating thereto is proper, accurate, and in accordance with
law.
first Illinois Bank Building' 3Z7 Missouri Avenup, Suite 603 .fast St.louis, Il6ZZ01
Phone: (618) 17~- nz I.fax: (618) 27454413 .fmail: www,(dmpbell-lluom
We conducted our examination in accordance with attestation standards esmblished 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
thc United States; the lllinois 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 Bureau'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 detennination on the Bureau's compliance with
specified requirements.
In our opinion. the Bureau complied, in all material respects, with the compliance requirements
listed in the first paragraph ofthis report during the two years ended June 30, 20J I.
internal Control
Management of the Bureau is responsible for establishing and maintaining effective intcmaJ
control over compliance with the requirements listed in the first paragraph of this report. In
planrJng il.!ld perfonning our examination, we considered the Bureau's internal control over
compliance with the requirements listed iii the first paragraph of this report as a basis for
designing our examination procedures for the purpose ofexpressing 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 Genera~ 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 ofthe Bureau's internal control over compliance.
A material weakness in an entity '" internal conlrOJ over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance does not allow management or
employees, in the normal course ofperfonning 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 aU 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.
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
6
Supplementary Information for State Compliance Purposes
Our examination was conducted for the purpose of fonning 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 Infonnation 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 Generai to the 201 i and
2010 Supplementary Information for State Compliance Purposes, except for Service Efforts and
Accomplishments on which we did not perfonn any procedures. However, we do not express an
opinion on the supplementary infonnation.
We have not applied procedures to the 2009 Supplementary Infonnation for State Compliance
Purpose~ and accordingly, we do not express an opinion thereon.
This report is intended solely for the infonnation and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, and Bureau management and is not
intended to be and should not be used by anyone other than these specified parties.
~/ac-
Campbell LLC
April 17, 2012
7
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUM.MARY
Supplementary Information for State Compliance Purposes presented in this section of
the report includes the following:
• Fiscal Schedules and Analysis:
Schedule ofAppropriations, Expenditures and Lapsed Balances
Comparative Schedule ofNet Appropriations, Expenditures
and Lapsed Balances
Schedule ofChanges 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.
8
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
For the Fiscal Year Ended June 30, 2011
Lapse Period Total
Appropriations Expenditures Expenditures Balances
P.A. 96-0956 (Net of Expenditures July 1 to 14 Months Ended Lapsed
FISCAL YEAR 2011 Transfers) Through June 30 August 31 August 31 August 31
General Revenue Fund - 001
\0
Lump Sum $ 2,489,400 $ 2,179,266 $ 124,898 $ 2,304,164 $ 185,236
Total Fiscal Year 2011 $ 2,489,400 $ 2,179,266 $ 124,898 $ 2,304,164 $ 185,236
Note: Appropriations, expenditures, and lapsed balances were obtained from the State Comptroller and have been reconciled to
records ofthe Bureau.
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
For the Fiscal Year Ended June 30, 2010
Lapse Period Total
Appropriations Expenditures Expenditures Balances
P.A. 96-0042 (Net of Expenditures July 1 to 14 Months Ended Lapsed
FISCAL YEAR 2010 Transfers) Through June 30 August 31 August 31 August 31
General Revenue Fund - 001
Personal Services $ 1,753,600 $ 1,659,004 $ 65,399 $ 1,724,403 $ 29,197
Social Security/
State Contributions 134,200 122,105 4,823 126,928 7,272
...... Lump Sum 601,600 396,589 16,888 413,477 188,123
0
Total Fiscal Year 2010 $ 2,489,400 $ 2,177,698 $ 87,110 $ 2,264,808 $ 224,592
Note: Appropriations, expenditures, and lapsed balances were obtained from the State Comptroller and have been reconciled to
records of the Bureau.
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES AND
LAPSED BALANCES
For the Fiscal Years Ended June 30,
2011 2010 2009
General Revenue Fund 001 P.A. 96-0956 P.A. 96-0042 P.A. 09-0731
Appropriations
(Net of Transfers) $ 2,489,400 $ 2,489,400 $ 2,858,683
Expenditures
Personal Services $ $ 1,724,403 $ 1,746,956
Employee Retirement Contributions
Paid by Employer 63,509
State Contribution to State
Employees' Retirement System 290,353
Employees' Retirement System
Continuing Appropriation 72,350
State Contribution to Social Security 126,928 129,086
Contractual Services 118,568
Travel
Commodities 7,724
Printing 141,114
Equipment 228,015
Telecommunications 10,147
Lump Sum 2,304,164 413,477
Total Expenditures $ 2,304,164 $ 2,264,808 $ 2,807,822
Lapsed Balances $ 185,236 $ 224,592 $ 50,861
11
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
SCHEDULE OF CHANGES IN STATE PROPERTY
For the Two Years Ended June 30,2011
Equipment
Balance at July 1, 2009 $ 349,822
Additions 508
Deletions (661)
Net Transfers
Balance at June 30, 2010 $ 349,669
Balance at July 1,2010
Additions
Deletions
Net Transfers
Balance at June 30, 2011
$
$
349,669
2,894
(550)
780
352,793
Note: The above schedule has been derived from Bureau records which have been
reconciled to property reports submitted to the Office of the Comptroller.
12
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
COMPARATIVE SCHEDULE OF CASH RECEIPTS
For the Years Ended June 30,
2011 2010 2009
General Revenue Fund (001)
Subscription or Publication $ 1,815 $ 2,200 $ 2,365
Reimburst:IIlent for Jury Duty / Recoveries 263
Prior Year Refund 1,015
Total Gelleral Revenue Fund $ 3,093 $ 2,200 $ 2,365
General Assembly Computer Equipment Fund (155)
Copy Fees $ 140 $ 70 $ 210
TOTAL RECEIPTS $ 3,233 $ 2,270 $ 2,575
13
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
RECONCILIATION SCHEDULE OF CASH RECEIPTS
TO DEPOSITS REMITTED TO THE STATE COMPTROLLER
For the Fiscal Year Ended June 30,
GENERAL REVENUE FUND (001)
Receipts per Bureau Records
Add: Deposits in Transit, Beginning Year
Less: Deposits in Transit, End of Year
$
2011
3,093 $
2010
2,200
Deposits Recorded by tht: Comptroller
GENERAL ASSEMBLY COMPUTER
EQUIPMENT FUND (155)
Receipts per Bureau Records
Add: Deposits in Transit, Beginning Year
Less: Deposits in Transit, End ofYear
Deposits Recorded by the Comptroller
14
$
$
$
3,093
140
140
$
$
$
2,200
70
70
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
ANALYSIS OF SIGNIFICA.~TVARIATIONS IN EXPENDITURES
For the Two Years Ended June 30, 2011
ANAYLYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2011 AND 2010
There were no significant variations in expenditures between Fiscal Years 2011 and 2010.
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2010 AND 2009
There were no significant variations in expenditures between Fiscal Years 2010 and 2009.
15
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
~~ALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS
For the Two Years Ended June 30, 2011
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS BETWEEN FISCAL YEARS
2011 AND 2010
General Revenue Fund 001
Reimbursement for Jury Duty and Recoveries
The increase in reimbursement for jury duty and recoveries in FYll is due to an increase in the
number of staffmembers serving jury duty.
Prior Year Refunds
The increase in prior year refunds during FYll was due to several prior year refunds from a legal
reference vendor for overpayments made by the Bureau.
General Assembly Computer Equipment Fund 155
Copy Fees
The increase in copy fees during FY11 was due to a larger number of requests for Illinois
Legislative Compiled Statutes during the year.
ANALYSIS OF SIGNIFICANT VARIATIONS IN RECEIPTS BETWEEN FISCAL YEARS
2010 AND 2009
General Assembly Computer Equipment Fund 155
Copy Fees
The decrease in copy fees during FYI0 was due to fewer requests for Illinois Legislative Compiled
Statutes during the year.
16
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
For the Two Years Ended June 30, 2011
There was no significant lapse period spending noted during Fiscal Years 2010 or 2011.
17
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
AGENCY FUNCTIONS
The Legislative Reference Bureau (Bureau) is a service bureau responding to the needs of the
General Assembly pursuant to the Legislative Reference Bureau Act (25 ILCS 135/) and the
Legislative Commission Reorganization Act of 1984 (25 ILCS 130/). The Bureau was created
June 26, 1913.
The Joint Committee on Legislative Support Services directs the Bureau and also detennines many
of the policies for the Bureau. The Legislative Reference Bureau is to have a Board t.l:Iat consists
of three legislators appointed by each member of the Joint Committee on Legislative Support
Services.
The Legislative Reference Bureau is located in the CapitolBuilding, Room 112, Springfield,
Illinois62706. The main duties ofthe Bureau are:
• Establishing a reference bureau (legal library) in the State Capitol to collect laws, books,
periodicals and other printed material adapted to the needs of the members of the General
Assembly in the perfonnance oftheir official duties.
• Collecting, summarizing and indexing all bills, resolutions and amendments introduced in
the General Assembly and preparing, printing and distributing a Legislative Synopsis and
Digest for the members periodically when the General Assembly is in session.
Subscriptions are available to the general public for a fee of$55 each.
• Offering such legal assistance and information as may be practicable in the preparation of
bills, resolutions and amendments and other legislative documents to be introduced into the
General Assembly by a member. Attorneys employed by the Bureau provide this service to
legislators on a non-partisan basis in a confidential lawyer-client relationship.
• Recommending revisions, simplifications and rearrangements of existing statutory law and
the elimination of obsolete, superseded duplicated and unconstitutional statutes or parts of
statutes.
• Reviewing all reported decisions of the Federal Courts and the Supreme and Appellate
Courts of Illinois and recommending technical corrections in the statutes to comply with
these decisions.
• Preparing revisions to confonn the statutes to any reorganization of the executive branch
taking effect pursuant to executive order of the Governor under Article V, Section 11 of the
Constitution and the Executive Reorganization Implementation Act.
18
STATE OF ILLINOIS
LEGISLATIVE REFERENCE B1JREAU
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
'. Maintaining a computer memory system containing the Illinois Compiled Statutes with
current revisions. Infonnation from that system is to be provided to the members and
agencies of the General Assembly and the Attorney General. Legislative Information
System is providing the computer time for this memory system. In addition, the Bureau is
required (25 ILCS 140/2 and 25 ILCS 135/5.04) to make this system available to the public
or other governmental entities and agencies, subject to the requirement that the quality of
service to the Bureau, the General Assembly or the Attorney General shall not be reduced.
The Legislative Reference Bureau has adopted rates and conditions and has specified
charges regarding the offeri..,g of this service.
• Supervising the participation of the State of Illinois in the National Conference of
Commissioners on Uniform State Laws, and representing the State of Illinois on that
commission (25 ILCS 135/5.07). In connection with these responsibilities, the Bureau is to
examine those subjects on which unifonnity with the laws ofother states is desirable and is
to ascertain the best means to affect u..'liformity in the laws cfthe States.
PLANNING PROGRAM
The Legislative Reference Bureau is a responsive agency with its operations and programs
specified by the legislature in accordance with its legislative mandates. As a result, the Bureau
does not have formal written goals and objectives, but instead operates to fulfill these mandates in
a timely and efficient manner.
The Bureau does plan, on a short-term basis, for anticipated needs of the General Assembly and
budgets time and appropriations accordingly. The small size of the Bureau enables the Executive
Director to personally monitor the needs and to review personnel performance in fulfilling the
mandates of the Bureau.
19
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
AVERAGE }\jlJMBER OF EMPLOYEES
For the Years Ended June 30,
AVERAGE NUMBER OF EMPLOYEES
The following table, prepared from Bureau records, presents the average number of employees, by
function, for the Fiscal Years ended June 30,
Division 2011 2010 2009
Administrative 4 4 4
Professional 14 15 17
Clerical 12 12 13
Total average full-time employees 30 31 34
20
STATE OF ILLINOIS
LEGISLATIVE REFERENCE BUREAU
SERVICE EFFORTS Al~D ACCOl\-IPLISHMENTS
For the Two Years Ended June 30, 2011
(Not Examined)
Legislative Digest Statistics
The Legislative Digest is a synopsis ofthe legislation before both houses ofthe General Assembly.
A comparative schedule of expenditures connected with preparing, publishing and distributing the
Legislative Digest follows:
2011 2010 2009
Printing and paper Stock $80,206 $85,142 $105,577
Contractual
(mailing service, boxes) 2,530 1,382 7,334
(binding for library) 7,000
Postage 625 21,175 5,000
Total .$. 83JJ?1 $ 107,699 $ 124,911
Most of the copies are distributed free of charge as a service to members of the General Assembly
and other specified governmental employees. The sales price to the public for the digest is $55 for
an annual subscription. Subscriptions for less than one year are not reduced proportionately. The
price for one or more issues is $55.
The number oforders and revenues from these sales are presented below:
Number ofpaid subscriptions
Total Revenue
General Assembly Reguests
2011
33
$1,815
2010
40
$2,200
2009
43
$2,365
The Legislative Reference Bureau maintains records of requests from members of the General
Assembly. These records include: bills, amendments, resolutions and conference committee
reports. During the 96th General Assembly there were 13,460 requests, and there have been 6,274
requests as of August 31,2011 for the 97th General Assembly.
21
