STATE OF ILLINOIS
LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended .June 30, 201 1
Performed as Special Assistant Auditors
For the Auditor General, State of Illinois
Officials
Management Assertion Letter
Compliance Report
Summary
Accountant's Report
LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
TABLE OF CONTENTS
Independent Accountants' Report on State Compliance, on Internal
Control Over Compliance, and on Supplementary Information for
State Compliance Purposes
Schedule of Findings
Current Findings State Compliance
Prior Findings Not Repeated
Supplementary Information for State Compliance Purposes
Summary
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)
2
3
5
8
17
18
19
21
22
23
24
25
27
28
29
31
32
Fiscal Officer
Counsel
Agency offices are located at:
1 Natural Resources Way
151 Floor
Springfield, IL 62702
I 60 North LaSalle Street
Suite S-400
Chicago, IL 6060 I
AGENCY OFFICIALS
LABOR RELATIONS BOARD
~r.John Brosnan
~s. Nicole Hildebrand
~r. Jerald Post
Illinois Labor Relations Board
Washington, Pittman & McKeever, LLC
819 S. Wabash, Suite 600
Chicago, Illinois 60605
Ladies and Gentlemen:
January 26,2012
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 Agency. 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 Agency'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, 2010 and June 30, 2011, the Agency has materially complied with the assertions
below.
A. The agency 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 agency 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 agency 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 agency 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 agency on behalf of the State or
held in trust by the agency have been properly and legally administered, and the accounting and
recordkeeping relating thereto is proper, accurate and in accordance with law.
Yours very truly,
Illinois Labor Relations Board
160 North LaSalle Street, Suite S-400 • Chicago, Illinois 60601-3103 • Phone: 312-793-6400 • Fax: 312-793-6989
One Natural Resources Way, 1st Floor • Springfield, Illinois 62702 • Phone: 217-785-3155 • Fax: 217-785-4146
www.state.jl.us/i!rb
COMPLIANCE REPORT
SUMMARY
The
Government
performed during this examination was conducted in accordance with
ualrtmH '")tan'aa,ras 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 does not contain scope
limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Findings
Repeated findings
Prior recommendations implemented or not repeated
Current
6
5
3
Prior
Report
8
7
4
Details of findings are presented in the separately tabbed report section of this report.
SCHEDULE OF FINDINGS
Item No. Finding Type
FINDINGS (STATE COMPLIANCE)
11-1 8 Inadequate Controls over the Recording and Significant Deficiency
Reporting of State Property and Noncompliance
11-2 10 Inadequate Support for and Untimely Deposit of Significant Deficiency
Receipt Transactions and Noncompliance
11-3 I 1 Inadequate Segregation of Duties Significant Deficiency
and Noncompliance
I 1-4 12 Inadequate Procedures over Employee Significant Deficiency
Evaluations and Noncompliance
11-5 14 Noncompliance with the Illinois Public Labor Significant Deficiency
Relations Act and Noncompliance
11-6 16 Noncompliance with the Illinois Police Training Significant Deficiency
Act and Noncompliance
3
SCHEDULE OF FINDINGS (Continued)
EXIT CONFERENCE
The Illinois Labor Relations Board waived having an conference in correspondence dated January 6,
12. to the recommendations were provided by Nicole Hildebrand, Fiscal Officer, in
correspondence dated January 2012.
4
INDEPENDENT ACCOUNT ANTS' REPORT ON STATE COMPLIANCE,
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON
SUPPLEMENTARY INFORMATION FORST ATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of Illinois, Labor
Relations Board'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 Illinois, Labor Relations Board is responsible for compliance with these requirements. Our
responsibility is to express an opinion on the State of Illinois, Labor Relations Board's compliance based
on our examination.
A. The State of Illinois, 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 State of Illinois, 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 State of Illinois, Labor Relations 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 State of Illinois, Labor Relations 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 negotiable securities or similar assets handled by the State of Illinois, Labor Relations
Board on behalf of the State or held in trust by the State of Illinois, Labor Relations Board have
been properly and legally administered and the accounting and recordkeeping relating thereto is
proper, accurate, and in accordance with law.
5
ex~1manat1on in accordance with attestation •'•"·"d"""d" estabiiJStled
the standards applicable to
Government by the Comptroller
.. ..,. ...... u.,.,.. Act (Act); and the Audit Guide as adopted by the Auditor General pursuant to the and,
on a test evidence about the State Illinois, Labor Relations Board's
compliance with those requirements listed in the paragraph of this report and performing such other
procedures as we considered necessary in the circumstances. We that our examination provides a
reasonable for our opinion. Our examination does not provide a legal determination on the State of
Illinois, Labor Relations Board's compliance with specified requirements.
In our opinion, the State of Illinois, Labor Relations Board complied, in all material resoe<;ts. with the
compliance requirements listed in the first paragraph of this report during the two years ended June 30,
201 I. However, the results of our procedures disclosed instances of noncompliance with the
requirements, which are required to be reported in accordance with criteria established by the Audit
Guide, by the Illinois Office of the Auditor General and which are described in the accompanying
schedule of findings as items 11-l through I 1-6.
Internal Control
Management of the State of Illinois, Labor Relations 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 State of Illinois, Labor
Relations 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 State of Illinois, Labor Relations 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 items
11-1 through 11-6. A significant deficiency in an entity's internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a
6
material weakness in internal control over
charged with governance.
As required by the Audit Guide, immaterial findings excluded from this report
cPnnrntP letter to your office.
reported in a
The State of Illinois, Labor Relations Board's responses to the findings identified in our examination are
described in the accompanying schedule findings and questioned costs. We did not examine State of
Illinois, Labor Relations 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 optmon 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 20 1 1 and 20 I 0 Supplementary Information for
State Compliance Purposes, except for 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, agency management, and the governing board and is not
intended to be and should not be used by anyone other than these specified parties.
Chicago, Illinois
January 26, 2012
WASHINGTON, PITTMAN & McKEEVER, LLC
7
II 1 FINDING
STATE OF ILLINOIS
LAB(JR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
(Inadequate controls over the recording and reporting of state property)
Illinois Labor Relations Board (Board) did not maintain sufficient controls over the recording
and State property. We noted the following:
• Two eight (8) Quarterly Reports of State Property (C-IS's) prepared by the
Board and submitted to the Illinois Office of the Comptroller (IOC) did not accurately reflect
Board equipment transactions. The fiscal year 201 0 additions were overstated by a total of
$9.519. The 2010 additions included two (2) operating leases totaling $10,224 and
understated one ( 1) addition by $705. Board personnel stated the C-15 report is prepared
from the Board's inventory I isting and errors made to the I isting were carried over to the C-15
quarterly reports.
Statewide Accounting Management System (SAMS) (Procedure 29.20.1 0) states all additions,
deletions and transfers to each asset category should be entered for the quarter being reported.
• The Board did not maintain an accurate property listing. We noted the following:
o Seven (7) of twenty-five (25) (28o/o) additions tested were temporarily transferred out
and back into the Board without supporting documentation. Board personnel stated they
were not aware that a temporary transfer form was needed.
The Board's inventory listing included two (2) items totaling $10,225 which are under
an operating lease and not State property. Board personnel was under the impression
that all property was State property, regardless of the purchasing method.
o One ( 1 ) voucher tested was not properly included in the inventory listing as the amount
was understated by $705. Board personnel stated this was due to oversight.
The State Records Act (5 ILCS 160/9) requires the Board preserve records containing
adequate and proper documentation.
During the prior engagement, the Board also had the following deficiencies: 1) reported equipment
on the C-IS's to the IOC from 89 to 2,921 days late; 2) did not maintain a complete record of
additions and deletions that occurred during the period; 3)filed one of the eight C-15 reports 4 days
late; 4) filed one of two Certifications of Inventory with the Department of Central Management
Services (DCMS) 35 days late; and 5) did not timely file the fiscal year 2008 Annual Real Property
Utilization Report with DCMS. During the current examination, we noted the Board took steps to
correct the prior deficiencies noted.
Failure to maintain accurate property control records increases the potential for fraud and possible
loss or theft of State property. In addition, inaccurate property reporting reduces the reliability of
Statewide capital asset information. (Finding Code No. 11-1, 09-1, 07-2, 07-3, 05-4)
8
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
RECOMMENDATION
We recommend the Board strengthen controls over the recording and reporting State property by
r•'"·''""., .. ,,.T their inventory and recordkeeping practices to ensure compliance with statutory and
reg~ul«:ltOJ!'V requirements. We also recommend the Board thoroughly review all reports prepared from
internal records for completeness and accuracy before submission to the Department of Central
Management Services when transferring out equipment items. In addition, we recommend the Board
ensure all equipment is accurately and timely recorded on the Department's property records and
properly tagged.
BOARD RESPONSE
The Board accepts the finding and recommendations. The agency will review its processes to
ensure compliance with the recommendations.
9
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended .June 30,2011
11-2 FINDING
The Illinois Labor Relations Board (Board) did not have adequate controls over the deposit of
receipts.
During our testing, we noted:
• Five (5) of nineteen ( 19), (26%) receipts tested, totaling $68, were not deposited in a timely
manner. The receipts were submitted 3 to 8 days late.
The State Officers and Employees Money Disposition Act (Act) (30 ILCS 230/2) requires
each State agency to deposit into the State treasury cumulative receipts valued up to $500 on
the next first or fifteenth day of the month after receipt.
• Four ( 4) of nineteen (19), (2 1 %) receipts and corresponding Treasurer's Drafts tested,
totaling $107, were not submitted to the Office of the ComptroiJer (Comptroller) within 30
days, which is considered a reasonable time frame. The Treasurer's Drafts were submitted
between 1 8 and 54 days late.
Statewide Accounting Management System (SAMS) (Procedure 25.1 0.30) requires
Treasurer's Drafts be remitted to the Comptroller. Good internal controls require deposits to
be processed timely to increase the balance of funds available for expenditure. The Fiscal
Control and Internal Auditing Act (30 ILCS 10/3001) requires all State agencies to establish
and maintain a system, or systems, of internal fiscal controls to provide assurance resources
are utilized effectively and efficiently.
Board personnel stated that the late deposits and submissions were due to oversight of the fiscal
department.
Untimely deposit of receipts reduces the amount of money available to pay current costs.
Untimely submittal of Treasurer's Drafts to the Comptroller reduces the amount available on
which interest could be earned. (Finding Code No. 11-2, 09-4, 07-8)
RECOMMENDATION
We recommend the Board comply with the State Officers and Employees Money Disposition Act
by making timely deposits into the State Treasury. In addition, the Board should submit
Treasurer's Drafts to the Comptroller in a timely manner.
BOARD RESPONSE
The Board accepts the finding and recommendations. The agency will review its processes to
ensure compliance with the recommendations.
10
II
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30,2011
FINDING
The Illinois Labor Relations Board (Board) had inadequate segregation of duties in the areas of
revenue and expenditure control. We noted the following:
• One person had authority to perform procurement functions, prepare and approve vouchers,
maintain accounting records and perform monthly expenditure reconciliations.
• One person had authority to prepare payroll, approve payroll and distribute payroll stubs.
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 I 0/3001)
requires State agencies to establish and maintain a system, or systems, of internal fiscal and
administrative controls.
Board personnel stated the lack of segregation of duties was due to the limited number of staff.
Board personnel also stated they implemented some additional review procedures to compensate
for some of the segregation of duties problems noted. However, these additional review
procedures were not consistently documented in the Board's records.
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.
During the prior examination, we noted, as part of the inadequate segregation of duties in payroll,
the same person had the ability to make adjustments to payroll, in addition to preparing and
approving payroll and distributing payroll stubs. During the current examination, however, the
Board implemented a procedure requiring any adjustments to payroll first be approved in writing
by either the Executive Director or personnel manager prior to data entry. (Finding Code No. 11-
3, 09-5, 07-9)
RECOMMENDATION
We recommend the Board maintain an effective internal control over the record keeping and
accounting duties concerned with revenue and expenditure control.
BOARD RESPONSE
The agency will reexamine its internal controls and continue to research ways to segregate the
above-cited duties.
II
11-4 FINDING
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
(Inadequate procedures over employee evaluations)
The Illinois Labor Relations Board (Board) did not submit employee performance evaluations in
a timely manner in accordance with Illinois Labor Relations Board Personnel and Policy Manual.
During our test of personnel evaluations, we noted the following:
• Two (2) of (6) (33o/o) of the performance evaluations tested for fiscal year 2011 were
not submitted timely to Human Resources. These evaluations were submitted one
hundred sixty four ( 164) to two hundred ninety seven (297) working days late.
• Three (3) of three (3) ( 1 00%) probationary evaluations tested for the two years were not
submitted timely to Human Resources. These evaluations were submitted six ( 6) to one
hundred seventy seven ( 1 77) working days late.
Per the Illinois Labor Relations Board Personnel and Policy Manual, Chapter 2, Section I,
participation in the evaluation process is a requirement for all Illinois Labor Relations employees.
Evaluations shall be done every 12 months, unless otherwise specified under the CMS Personnel
Rules. Furthermore, for any employee serving a six month probationary period, the Illinois
Administrative Code (80 IL Adm Code 302.270) requires the agency prepare and submit to the
Department (CMS) two evaluations, one at the end of the third month of the employee's
probationary period and another 15 days before the conclusion thereof.
Board personnel stated the late evaluations were due to oversight and competing priorities.
Performance evaluations are a systematic and uniform approach used for the development of
employees and communication of performance expectations to employees. Performance
evaluations should serve as a foundation for salary adjustments, promotion, demotion, discharge,
lay off, recall and reinstatement decisions. It should also be the basis for recognizing
contributions and/or identifying weaknesses of employees in the achievement of the Board's
mission and goals, in providing prompt and dependable service, and strengthening the employeesupervisor
relationship. Failure to ensure all personnel evaluations are submitted timely to
Human Resources interferes with the Agency's personnel decision process. (Finding Code No.
1 1-4)
RECOMMENDATION
We recommend the Board establish monitoring and review procedures to ensure performance
evaluations are completed and submitted to Human Resources on a timely basis.
12
For the Two Years Ended June 30,2011
BOARD RESPONSE
The agency will endeavor to ensure procedures to perform evaluations in a timely manner are
followed.
13
II FINDING
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30,2011
(Noncompliance with the Illinois Public Labor Relations Act)
The Illinois Labor Relations Board (Board) failed to comply with various provisions of the Illinois
Public Labor Relations Act (Act). We noted the following:
• The Board did not I) monitor billings of and payments to mediators, to ensure parties have paid
mediators equally; 2) promulgate regulations setting compensation levels for members of the
Roster; and 3) establish procedures for the suspension or dismissal of mediators for good cause
following hearing as required by the Act
The Act ( 5 I LCS 3 15/ J 2( a)) requires I ) mediators be paid equally by the parties of a mediated
labor dispute; 2) the Board shall have authority to promulgate regulations setting compensation
levels for members of the Roster, and 3) the Board shall have the authority to establish
procedures for suspension or dismissal of mediators for good cause shown following hearing.
Board personnel stated noncompliance is due to lack of sufficient resources.
• During our testing of twenty-five (25) cases, we noted fourteen (14) (56%) instances where the
parties failed to notify the Board of their selection for neutral chairman as required by the Act
The Board established an informal extension process, whereby four (4) of the fourteen (14)
parties agreed on a neutral chairman within the extension period. Furthermore, the Board failed
to appoint a neutral chairman when the other parties involved did not agree upon one in a timely
manner.
The Act (5 ILCS 315/14(c)) requires the Board to appoint a neutral chairman from the Illinois
Public Employees Mediation/ Arbitration Roster if the parties fail to notify the Board in a timely
manner of their selection for neutral chairman.
Board personnel stated the Board implemented new procedures and was met with resistance from
some parties.
Failure to comply with all the provisions of the Act is noncompliance with a statutory mandate.
(Finding Code No. 11-5, 09-7, 07-11)
14
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Years Ended June 30, 2011
RECOMMENDATION
We recommend the Board either comply with the Act as written or seek legislative changes to the
Act.
BOARD RESPONSE
The agency accepts the recommendation and will investigate its options to ensure it is in
compliance with the Act.
15
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDULE OF FINDINGS
For the Two Yean Ended June 30, 2011
11-6 FINDING (Noncompliance with the Illinois Police Training Act)
The Illinois Labor Relations Board (Board) did not prepare and submit reports as required by the
Illinois Police Training Act (Act).
The Act (50 ILCS 705/6.1 (r)) requires the Executive Director of the Board to prepare and submit
semi-annual reports to the Governor, President of the Senate, Minority Leader of the Senate,
Speaker of the House, and Minority Leader of the House details of the Board's activities with
respect to the Act, including:
• The number of verified complaints received since the date of the last report;
• The number of investigations initiated since the date of the last report;
• The number of investigations concluded since the date of the last report;
• The number of investigations pending as of the reporting date;
• The number of hearings held since the date of the last report; and
• The number of officers decertified since the date of the last report.
However, we noted the Board did not prepare or submit such reports during the examination
period as required.
Board personnel stated oversight due to competing priorities.
Failure to prepare and submit the required reports reduces the quantity of information available to
government leaders for oversight purposes and is noncompliance with a statutory mandate.
(Finding Code No. 11-6, 09-8)
RECOMMENDATION
We recommend the Board comply with the Act by preparing and submitting the semi-annual
reports as required.
BOARD RESPONSE
Upon notification from the auditors of noncompliance, the agency responded by submitting, on
December 20, 20 II, a cumulative report bringing its reporting status current to June 30, 20 II.
On January 3, 2012, the agency submitted its report for the period of time from July I, 2011 to
December 31, 20 II, making its reporting status current as of that date. The agency will continue
to ensure it fulfills its obligations in this regard henceforth.
16
A.
B.
C.
FINDING
STATE OF ILLINOIS
LAB<JR RELATIONS BOARD
PRIOR FINDINGS NOT REPEATED
For the Two Yean Ended June 30,2011
PRIOR FINDINGS NOT REPEATED
(Travel processing weaknesses)
During the prior examination, the Illinois Labor Relations Board (Board) did not maintain
adequate controls over travel.
During the current examination, the Board strengthened its controls over travel. (Finding Code
No. 09-2, 07-5)
FINDING (Inadequate controls over accumulated leave records, leave requests and final
termination pay)
During the prior examination, the Illinois Labor Relations Board (Board) did not exercise
adequate control over employee accumulated benefit time records, requests for use of employee
benefit time, and employee final termination.
During the current examination, the Board strengthened its controls over employee accumulated
benefit time records, requests for use of employee benefit time and employee final termination.
However we noted one matter which was reported as immaterial finding IM Il-l. (Finding Code
No. 09-3)
FINDING (Inadequate controls over contractual agreements)
During the prior examination, the Illinois Labor Relations Board (Board) did not exercise
adequate control over its contractual agreements, Contract Obligation Documents (COOs), and
related documentation.
During the current examination, the Board strengthened its controls over its contractual
agreements, COOs, and related documentation. (Finding Code No. 09-6)
17
LABOR RELATIONS BOARD
COMPLIANCE EXAMINATION
For the Two Years Ended .June 30,2011
SUPPLEMENTARY INFORMATION FORST ATE COMPLIANCE PURPOSES
SUMMARY
Supplementary Information
includes the following:
State Compliance Purposes presented in this section of the report
• Fiscal Schedules and Analysis:
Schedule of Appropriations, Expenditures and Lapsed Balances
Comparative Schedule ofNet 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 Cash 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.
18
STATE OF ILLINOIS
LABOR RELATIONS BOARD
SCHEDlfLE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BAL\NCES
Appropriations for Fiscal Year 2011
P.A. 96-0956, 96-0959
FISCAL YEAR 2011
General Revenue Fund - 001
Personal Services
State Contributions to Social Security
Lump Sum: Operational Expenses
Total General Revenue Fund
Fourteen Months Ended August 31,
Appropriations
(Net After
$ $
Expenditures
Through
6/30/2011
Approximate
Lapse Period
Expenditures
7/0 I - 8/31120 ll
$
$ 53,369
$
$ 1.520.273
Note 1 : Apppropriations, expenditures, and lapsed balances were obtained from Board records and have been reconciled to records of the
Note 2: Expenditure amounts are vouchers approved for payment by the Board and submitted to the State Comptroller for payment to the vendor.
$
$
Note 3: Approximate lapse period expenditures do not include interest payments approved for payment by the Board and submitted to the for
payment after August.
19
STATE OF ILI~INOIS
LABOR RELATIONS BOARD
SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES
Appropriations for Fiscal Year 2010
P.A. 96-0042, 96-0045
General Revenue Fund - 001
Personal Services
State Contributions to Social Security
Lump Sum: Operational Expenses
Total General Revenue Fund
Fourteen Months Ended August 31,
$ I ,187, 700
90,900
$
78,863
1391.926
$
Note J· Apppropriations, expenditures, and lapsed balances were obtained from Board records and have been reconciled to records
78,863
Note 2: Expenditure amounts are vouchers approved for payment by the Board and submitted to the State Comptroller for payment ot the vendor
20
STATE OF ILLINOIS
LABOR REI.ATJONS BOARD
COMPARATIVE SCHEQULE Of NET APPROPRIATIONS. EXPENDITURES ANO LAPSED BALANCES
Appropriations
(Net atler Transfers)
Personal Services
State Contributions to State
Employees' Retirement System
State Contributions to Social Security
Contractual Services
Travel
Commodities
Printing
Equipment
Electronic Data Processing
Telecommunications
Lump Sum: Operational Expenses
Total Expenditures
Lapsed Balances
Salaries paid from the
Comptroller's Executive Salary
Appropriation:
Board Chairman
Four State Panel Board Members
Two Local Panel Board Members
Total Expenditures from
Comptroller's Executive Salaries
Appropriation
2011
P.A. 96-0956
PA. 96-0959
$
$ 0
0
0
0
0
0
0
0
0
0
$
$ 99,560
358.430
179,215
FISCAL YEAR
2010
P.A. 96-0042
P.A. 96-0045
$ 1,081,929
0
78,863
0
0
0
0
0
0
0
$ 103,667
376,626
187,852
$ 668,145
Note I: Fiscal year 2010 amounts are final and include interest payments made after August.
2009
P.A.
$ 1,198,910
252,492
87,887
108,960
16,339
4,412
3,891
1,057
56,384
36,852
0
$ 104,358
375,082
187,852
Note 2: Fiscal year 2011 expenditures and related lapsed balances do not reflect any interest payments approved for
payment by the Board and submitted to the Comptroller for payment after August.
21
LABOR RELATIC)NS BOARI)
SCHEOULE OF CHANGES IN STATE PROPERTY
For the Two Years Ended .June 30,2011
Balance at July I, 2009 $ 161
Additions 42,467
Deletions (943)
Net Transfers 0
Balance at June 30, 20 I 0 $ 203,276
Balance at July 1, 2010 $ 203,276
Additions 3,168
Deletions (8,977)
Net Transfers 0
Balance at June 30, 20 II $ 197,467
Note: The above schedule has been derived from Board records which have been reconciled
to property records submitted to the Office of the Comptroller.
22
STATE OF ILLINOIS
LABOR RELATIONS BOARD
C<JMPARATIVE SCHEDULE OF CASH RECEIPTS
For the Two Years Ended June 30,2011
Revenue Fund
Copies
Miscellaneous
Total General Revenue Fund
$
$
23
201 I
169
0
169
2010
$ 899
84
$ 983
$
$
2009
1,287
0
1,287
STATE OF ILLINOIS
LABOR RELATIONS BOARD
RECONCILIATION SCHEDULE OF CASH RECEIPTS TO
DEPOSITS REMITTED TO STATE COMPTROLLER
For the Two Years Ended June 30, 2011
General Revenue Fund 2011
Receipts per Department Records $ 169
Add: Deposits in Transit, Beginning of Year 0
Less: Deposits in Transit, End of Year 0
Deposits Recorded by the Comptroller $ 169
24
2010
$ 983
0
0
$ 983
LABOR RELATIONS BOARD
ANALYSIS OF SJ(;NIFICANT VARIATIONS IN EXPENDITURES
For the Two Years Ended June 30,2011
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2010 AND 2011
Variations in expenditures were considered significant if differences were greater than 20% and $2,000.
General Revenue Fund (001)
Personal Services
State Contributions to Social Security - The decrease was due to payments made from the
operational lump sum appropriation given in fiscal year 201 1. In fiscal year 2010, these
expenditures were paid separately from its respective line item within the General Revenue Fund.
Lump Sum The increase was due to personal services and state contributions to social security
payments made from the operational lump sum appropriation given in fiscal year 2011. In the
prior year, these expenditures were paid separately from its respective line item within the
General Revenue Fund.
25
STATE OF ILLINOIS
LABOR RELATIONS BOARD
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES
For the Two Years Ended June 30,2011
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES BETWEEN FISCAL
YEARS 2009 AND 2010
Variations in expenditures were considered significant if differences were greater than 20% and $2,000.
General Revenue Fund (001)
Personal Service,\' the decrease was due to the employee furlough requirement as well as one
employee retiring and another employee being laid off.
State Contributions to State Employees · Retirement System the decrease is due to the General
Assembly establishing a different method of paying the retirement costs which no longer passes
the funds through the Board's appropriation.
State Contributions to Social Security - the decrease was due to the employee furlough
requirement as well as one employee retiring and another employee being laid off.
Contractual Services
Travel
Commodities
Printing
Electronic Data Processing
Telecommunications - The decrease was due to payments made from the operational lump sum
appropriation given in fiscal year 20 I 0. In the prior year, the expenditures were paid from each
respective line item within the General Revenue Fund.
Lump Sum The increase was due to payments made from the operational lump sum
appropriation given in fiscal year 2010. In the prior year, these expenditures were paid separately
from its respective line item within the General Revenue Fund.
26
STATE OF ILLINOIS
LABOR RELA TI<)NS BOARD
ANALYSIS OF SIGNIFICANT VARIATIONS IN CASH RECEIPTS
For the Two Years Ended June 30, 2011
The Board receives minimal receipts. The majority the Board's
from year to year.
27
which vary
LABOR RELATIONS BOARD
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
For the Two Years Ended June 30, 2011
FISCAL YEAR 2011
General Revenue Fund (001)
Lump Sum The significant lapse period expenditures consist of $10,000 for an independent
contractor whose were completed prior to June 30, but not processed until lapse period,
approximately $11,700 of EDP equipment purchases, $8,500 in court reporting costs and $8,500
in facility utilities and telephone expenses. The remaining expenses represent miscellaneous
office supplies.
FISCAL YEAR 2010
General Revenue Fund (001)
Lump Sum The significant lapse period expenditures consist of $20,000 for independent
contractors whose services were completed prior to June 30, but not processed until lapse period,
approximately $I 2,500 in facility utility and telephone expenses and $5,300 in court reporting
costs. The remaining expenses represent miscellaneous office supplies.
28
STATE OF ILLINOIS
LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
AGENCY FUNCTIONS AND PLANNING PROGRAM
FUNCTIONS
The Illinois Public Labor Relations Act ILCS 315), enacted into law as Public Act 83-1012, effective
July 1 1984, and amended effective January 1, I 987, created both the State Labor Relations Board and
the Local Labor Relations Board. On July 9, 2000, the Illinois State Labor Relations Board and the
Illinois Local Labor Relations Board were dissolved in accordance with an amendatory act of the 91
General Assembly. Per the provisions of the dissolution, all powers, duties, rights, property and
obligations succeeded to the Local and State Panels, thereby collectively referred to in all respects as the
Illinois Labor Relations Board (Board). The fiscal operations and appropriations of both were
consolidated.
The Illinois Public Labor Relations Act sets forth the rules, regulations, and procedures for labor relations
and collective bargaining between public employers and employees in Illinois. The Act regulates the
designation of employee representatives; the negotiation of wages, hours, and other conditions of
employment; and the resolution of disputes arising under collective bargaining comprised of persons
experienced in labor relations, to expeditiously and fairly resolve disputes between public employees and
employers. The Board is also responsible for determining whether to decertifY police officers based on the
commission of perjury in a murder case pursuant to Section 6.1 of the Illinois Police Training Act, 50
ILCS 705/6.1 (2004), as amended.
The State Panel consists of a chairman and four members who are appointed by the Governor with the
advice and consent of the Senate. Two new members were appointed during the examination period. The
members as of June 30, 2011 were:
• Jacalyn J. Zimmerman, Chairman
• Mike Hade, Member
• Michael Coli, Member
• Albert Washington, Member
• Jessica Kimbrough, Member
The Local Panel consists of the chairman and two additional members, one appointed by the Mayor of the
City of Chicago and one appointed by the President of the Cook County Board of Commissioners. One
new member was appointed during the examination period. The members as of June 30,2011 were:
• Jacalyn J. Zimmerman, Chairman
• Charles Anderson, Member
• Edward Sadlowski, Member
29
LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30,2011
PLANNING PROGRAM
The Board does not have a formal planning program; however, the Board does meet often and discusses
short and long-term planning at the The overall of the Board is to resolve cases promptly,
accurately, and equitably. The major determinant in the planning process is the annual budget, which is
prepared by the fiscal officer, with advice and input from the Executive Director.
Due to the number of labor cases, emphasis has been on streamlining the Board process for resolving
cases. All Board personnel are involved in seeking problem areas that slow the hearing process, and in
tum, personnel look for ways to improve the problem areas. The Board reviews and monitors its planning
program in conjunction with the annual budget preparation and when evaluating its performance
measures. Since the number of cases that will be assigned to them each year is difficult to predict,
planning beyond short term is difficult.
30
LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30,2011
AVERAGE NUMBER OF EMPLOYEES
The following prepared from Board records. presents the average number of employees, by
function, for the Fiscal ended June 30,
Executive Director
Technical Advisors
Investigators and Supervisors
Administrative and Clerical
Total average full-time employees
Paid from Comptroller's Executive
Salaries Appropriation
Board Chairman
Board Members
Total average Board members
31
2011
10
3
6
20
I
6
7
2010 2009
1 1
9 7
3 4
7 8
20 20
1 1
6 6
7 7
STATE OF ILLINOIS
LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED)
The Illinois Public Labor Relations Act (Act) (5 ILCS 315) created a process whereby two general types
of cases are filed: representation cases (RC, RM, VR, RD, UC, DO. and AC case categories) which
determine what union, if any, will represent employees in specified bargaining units, and unfair labor
practice charges (CA's & CB's) regarding wrongful conduct by employers and unions. The process is
controlled by three programs: the investigative program, the administrative hearings program and by
final decisions of the Board and General Counsel.
Generally, cases filed in the last quarter and some complex cases filed in prior fiscal years will carry over
into the current fiscal year. Therefore, transactions occurring in the current fiscal year may reflect both
pending cases (filed in previous fiscal years) as well as cases filed in the current fiscal year.
Representation Cases
Representation petitions under the Board's procedures are determined through an election process that
results in certifYing the prevailing union, if any, for a specified collective bargaining unit. Sometimes
questions of representation must first be resolved through the hearing process which ends in an
Administrative Law Judge's Recommended Decision or Board Order. Additionally, the Executive
Director will occasionally issue an Order Directing an Election after resolving certain issues or dismiss
the petition if it is untimely.
The following types of petitions initiate representation proceedings before the Board:
1. (RC cases) are filed by an employee, group of employees,
or a labor organization seeking the certification of an exclusive bargaining representative for
employees in an appropriate unit.
2. (RM cases) are filed by an employer alleging that one or
more labor organizations have presented a claim to be recognized as an exclusive collective
bargaining representative for a majority of the employees in an appropriate unit.
3. Voluntary Recognition Petitions (VR cases) are requests for certification of a unit without an
election where the labor organization demonstrates it has a majority showing of interest in an
appropriate unit and the employer voluntarily recognizes them as the unit's exclusive
representative.
32
STATE OF ILLINOIS
LABOR RELATIONS BOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30,2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED), CONTINUED
4. {RD a detennination as to whether a majority of the
employees in an appropriate bargaining unit maintain their desire to be represented by the
existing exclusive bargaining representative.
5. (UC cases) are filed by an exclusive collective bargaining
representative or an employer seeking to clarity or amend an existing bargaining unit through the
addition or deletion of a position without an election.
6. (AC cases) are filed by an exclusive collective bargaining
representative seeking to amend its certification whenever there is a change in its name or
structure.
7. (DO cases) are filed by the labor organization to declare its
disinterest in further representation of that bargaining unit.
The following caseload statistics were furnished by the Board and have not been examined.
Various Types of Representation Cases Filed 2011 2010 2009
RC Representation/Certification Petition 145 241 215
RM Employer's Representation Petition 0 0 0
VR Voluntarily Recognition Petition 6 6 10
RD Decertification Petition 12 12 6
uc Unit Clarification Petition 1 12 158 163
AC Petition to Amend Certification 41 24 11
DO Declaration of Disinterest Petition _1_1 ___]_
Total Representation Cases Filed 4_07
Declaratory Rulings
Employer and labor organizations may also request the Board's General Counsel to issue a declaratory
ruling (DR) stating whether the Act requires bargaining over a particular subject or subjects. Such
requests must be made jointly, unless it involves a protective services employee unit where a request for
interest arbitration has been made.
33
STATE OF ILLINOIS
LAIJOR RELATIONS IJOARD
ANALYSIS OF OPERATIONS
For the Two Years Ended June 30, 2011
SERVICE EFFORTS AND ACCOMPLISHMENTS (NOT EXAMINED), CONTINUED
Mediation Cases
The and attorneys mediate and advise parties on all unfair labor practice charges both
during the investigation and just before the commencement of a hearing. These discussions, many times,
will result in the resolution of the dispute and the withdrawal of the charge. The success of mediating
cases can be shown in the percentage of cases that parties withdraw. The overall process discourages
strikes and other labor unrest
Additionally, the Board provides Mediation/Arbitration (MA cases) services to parties who have reached
an impasse in collective bargaining. The Board maintains a roster of mediators and arbitrators from
which panels are provided to parties requesting such services. The Act prohibits protective services
employees (security employees, peace officers, firefighters) from striking. Disputes over their
negotiations are subject to mandatory mediation and interest arbitration. Units of non-protective services
employees utilize mediation in the even impasse, and can only use interest arbitrations on agreement of
the parties. Other services, such as fact finding, grievance arbitration and grievance mediation are
provided at the request of one or both parties.
The Board provided services on the following mediation/arbitration cases to parties for the resolution of
impasses in collective bargaining:
Mediation/ Arbitration Petitions
Grievance Arbitration Requests
Total Mediation/ Arbitration Cases
Strike Investigations
2011
389
2010
381
12
2009
305
12
If a unit of non-protective services employees engages in a strike that the employer believes presents "a
clear and present danger to the health and safety of the public," the employer may petition the Board for a
strike investigation. The Board has 72 hours to determine whether such a clear and present danger exists.
The employer may then take the Board's findings to Circuit Court to seek to enjoin the work stoppage in
a manner that would eliminate the danger. When employees have been enjoined from striking pursuant to
this procedure, interest arbitration is used to resolve the issues in dispute.
34
STATE OF ILLINOIS
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
Section I 0 of the Act prohibits employers and labor organizations from in certain enumerated
unfair labor practices. An employer, a labor organization or an employee may file an unfair labor practice
charge with the Board. There are two types of unfair labor practice charges:
I. (CA cases) alleges that an employer has violated one of the provisions
under Section J O(a) of the Act.
2. (CB cases) alleges that a labor organization has violated one
of the provisions under Section I O(b) of the Act.
Unfair Labor Practice Charges 2011 2010 2009
CA Charge Against Employer 295 369 372
CB Charge Against Labor Organization 100
Total Unfair Labor Practice Cases ill
Total Cases Filed (Representation, Mediation
and Unfair Labor Practice Cases)
Total Expenditures $1,521,610 $1,445,602 $1,710,466
Total Expenditures per Case Filed $1,032 $1,078 $1,427
35
