HR0898 98TH GENERAL ASSEMBLY

HR0898 LRB098 20505 MST 56506 r

HOUSE RESOLUTION

WHEREAS, The Department of Central Management Services provides general administrative functions for State government; and

WHEREAS, The Department of Central Management Services bills State agencies for some of its administrative services and utilizes 7 revolving funds as the conduit for payments from agencies and payments to vendors; and

WHEREAS, The Department of Central Management Services has been cited by the Illinois Auditor General for weaknesses in internal controls over financial reporting, a condition that has existed since 2007; and

WHEREAS, These 7 revolving funds earned revenues of $566,000,000 in FY'12 and $500,000,000 in FY'l3; and

WHEREAS, 92% of the FY'12 revenues and 90% of the FY'13 revenues to 5 of the revolving funds (Facilities Management, Statistical Services, Communications, State Garage, State Surplus Property) were from billings to State agencies; and

WHEREAS, During FY'12, these 5 revolving funds operated at a surplus of $54,000,000, and in FY'l3, a deficit of $35,000,000; and

WHEREAS, The Department of Central Management Services also receives revenues for these revolving funds from non-State agency sources; and

WHEREAS, Between FY'10 and FY'14, while overall State appropriations have risen 12%, Department of Central Management Services appropriations have risen 420%; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-EIGHTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Auditor General is directed to conduct a management audit of the Department of Central Management Services for the period FY'12 through FY'14; and be it further

RESOLVED, This management audit include, but not be limited to, the following determinations:

1) An examination of the rate setting process and policies that are used to charge State agencies for administrative functions paid through the revolving funds;

2) An examination of the billings and revenues in the revolving funds;

3) An examination of the expenses paid with funds maintained in the revolving funds;

4) An examination of the procurement process utilized by the Department of Central Management Services to ascertain if it follows relevant laws, rules, policies, and procedures and meets the needs of the State agencies being served; and

5) An examination of the hiring process utilized by the Department of Central Management Services to ascertain if it supports the needs of the State agencies it serves; and be it further

RESOLVED, That the Department of Central Management Services and any other State agency or other entity or person that may have information relevant to this audit cooperate fully and promptly with the Auditor General's Office in its audit; and be it further

RESOLVED, That the Auditor General commence this audit as soon as practical and report his findings and recommendations upon completion in accordance with the provisions of Section 3-14 of the Illinois State Auditing Act; and be it further

RESOLVED, That a suitable copy of this resolution be presented to the Auditor General.